FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Job Order Costing

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Essay

Review LaterAdd Note

Review Later

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.

Correct Answer

verified

$1,250,000/40,000 = $31.25
$31...

View Answer

Show Answer

Question 92

Essay

Review LaterAdd Note

Review Later

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.

Correct Answer

verified

*560 × $2...

View Answer

Show Answer

Question 93

True/False

Review LaterAdd Note

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

For which of the following businesses would the process cost system be appropriate?

Which of the following would be most likely to use process costing?

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. -What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?

The Winston 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 50,000 hours. The total machine hours for the year was 54,300 hours. The actual factory overhead for the year was $1,375,000. a) Determine the total factory overhead amount applied. b) Calculate the over- or under applied amount for the year. c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

Match each of the following phrases with the term a-g) that it most closely describes. -applied overhead is more than actual overhead incurred

Which of the following would record the labor costs to an individual job?

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is

Match each of the following phrases with the term a-g) that it most closely describes. -typically used by companies whose products are indistinguishable from each other

Match each of the following phrases with the term a-e) that it most closely describes it. Each term will be used only once. -these make up the work in process subsidiary ledger

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

The entry to record the flow of direct labor costs into production in a job order cost accounting system is

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

Cost accounting systems measure, record, and report product costs.

At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information: $\begin{array} { | l | l | l | l | } \hline \text { Job } & \text { Direct Materials } & \text { Direct Labor } & \text { Machine Hours } \\\hline \text { Job No. } 765 & \$ 5,670 & \$ 3,500 & 27 \\\hline \text { Job No. } 766 & \$ 8,900 & \$ 4,775 & 44 \\\hline\end{array}$ Job 765 produced 152 units, and Job 766 consisted of 250 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the a) balance on the job cost sheets for each job, and b) the cost per unit at the end of April.

The following budget data are available for Sharp Company: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $180,000 Actual direct labor hours 11,500 Actual direct labor dollars $92,000 Actual factory overhead costs $181,000 If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is

The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?