FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Job Order Costing

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Bar code scanners are now being used to track incoming materials and to electronically transmit this data. Scanners have replaced which of the following:

A) receiving report
B) materials requisition
C) materials ledger
D) job cost sheet

E) A) and C)
F) B) and C)

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

The entries to record cost and sale of a finished good on account is:

A) debit Cost of Goods Sold, credit Finished Goods
B) debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales
C) debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable
D) debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales

E) B) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. Determine (a) the predetermined factory overhead rate, (b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800, and (c) prepare the journal entry to apply factory overhead in April according to the predetermined overhead rate.

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 300,000 hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by

A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

The source of the data for debiting Work-in-Process for direct materials is the:

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

At the end of the fiscal year, the balance in Factory Overhead is small. This balance would normally be:

Discuss how job order cost information is used in decision making. What are some possible reasons that actual cost of materials would exceed expected costs for a job?

The job order costing system is not used by service organizations.

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

During the period, labor costs incurred on account amounted to $275,000 including $200,000 for production orders and $75,000 for general factory use. In addition, factory overhead applied to production was $32,000. From the following, select the entry to record the factory overhead applied to production.

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. If the actual factory overhead totaled $141,800, determine the over or under applied amount for the month.

The following budget data are available for Happy Company: If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Materials are transferred from the storeroom to the factory in response to materials requisitions.