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Exam 19: Job Order Cost Accounting

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Question 61

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A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:

A) Job cost sheet.
B) Production order.
C) Materials requisition.
D) Materials purchase order.
E) Receiving report.

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Question 62

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A job order costing system would be appropriate for a manufacturer of automobile tires.

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Question 63

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Time tickets for factory employees during the month of August are summarized as follows: Make the necessary journal entries to record factory payroll for direct and indirect labor.

Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August,of which $212,000 was direct and $73,000 was indirect supervisory costs.The correct journal entry to record the $73,000 indirect labor for the month is:

When a job is finished,its job cost sheet is completed and moved from the file of jobs in process to the file of finished jobs that are yet to be delivered to customers.

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

A job cost sheet shows information about each of the following items except:

Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs,and allocates $18 of overhead for each employee hour worked.Materials are assigned to each job according to actual cost.Jobs are marked up 20% above cost to determine the selling price.If Job M-47 used $350 of materials and took 20 hours of labor to complete,what is the selling price that should be assigned to the job?

In a job order costing system,any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

Manufacturing costs incurred for jobs completed during an accounting period can bypass the inventory accounts on the balance sheet and be recorded directly in expense accounts.

A company's file of job cost sheets jobs not yet completed equals the balance in the Finished Goods Inventory account.

If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor,sold for $8.00,and was assigned overhead at the rate of 30% of direct labor costs,how much gross profit was realized from this sale?

Cost accounting systems used by manufacturing companies are based on the:

A system of accounting for production operations that produces timely information about inventories and manufacturing costs per unit of product is a:

Job A3B was ordered by a customer on September 25.During the month of September,Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor.The job was not finished by the end of the month,but needed an additional $3,000 of direct materials in October and additional direct labor of $6,500 to finish the job.The company applies overhead at the end of each month at a rate of 200% of the direct labor cost.What is the amount of job costs added to Work in Process Inventory during October?

The B&T Company's production costs for May are: direct labor,$13,000;indirect labor,$6,500;direct materials,$15,000;property taxes on production equipment,$800;heat,lights and power,$1,000;and insurance on plant and equipment,$200.B&T Company's factory overhead incurred for May is:

Cost accounting information is helpful to management for pricing decisions but has no effect on controlling costs.

If actual overhead incurred during a period exceeds applied overhead,the difference will be a credit balance in the Factory Overhead account at the end of the period.

Drop Anchor takes special orders to manufacture sail boats for high end customers.Complete the job cost sheets for Drop Anchor for September based on the following information.Prepare journal entries to record the transactions as well as post to the job cost sheets. a.Purchased raw materials on credit,$145,000. b.Materials requisitions: Job 240,$48,000;Job 241,$36,000;Job 242,$42,000;indirect materials were $12,000. c.Time tickets used to charge labor to jobs: Job 240,$40,000;Job 241,$30,000;Job 242,$35,000,indirect labor is $25,000. d.The company incurred the following additional overhead costs: depreciation of factory building,$70,000;depreciation of factory equipment,$60,000;expired factory insurance,$10,000;utilities and maintenance cost of $20,000 were paid in cash. e.Applied overhead to all three jobs.The predetermined overhead rate is 190% of direct labor cost. f.Transferred jobs 240 and 242 to Finished Goods Inventory. g.Sold job 240 for $300,000 for cash. h.Closed the under- or over-applied overhead account balance.