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Exam 4: Job-Order Costing Systems

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Question 51

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What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

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Employees are key to customer services.S...

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Question 52

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Which of the following costing system assigns actual costs of materials to inventory?

A) actual costing system
B) budgeted costing system
C) standard costing system
D) time-based costing system

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Question 53

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Normal costing uses which cost in work in process?

What source document is used to assign direct labour costs to individual jobs?

What is the flow of costs through the system in a traditional enterprise?

Alpha Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: $\begin{array}{lr}\text { Direct materials } & \$ 3,000 \\\text { Direct labour }(\$ 10 / \mathrm{hr}) & 1,000 \\\text { Overhead }(150 \% \text { DL } \$) & 1,500\end{array}$ After inspection, 2 units required rework, comprising 8 additional direct labour hours and $60 of materials. -Refer to the figure.If the rework is considered abnormal spoilage,what is the cost of job 492?

What information will be found on a materials requisition form?

In a job-order costing system,if costs are incurred to rework a job due to inadequate training of personnel,what would be the journal entry for these costs?

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5: Factory overhead is applied using a plant-wide rate based on direct labour hours. $\begin{array} { l l } \text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 50 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$ Factory overhead was budgeted at $60,000 for the year and the direct labour hours were estimated to be 15,000. Job XY5 consists of 50 units. -Refer to the figure.What the total cost assigned to Job XY5?

Griswold Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. $\begin{array}{|l|l|l|c|}\hline \text { Activity } & \text { Cost } & \text { Driver } & \text { Amount of driver } \\\hline \text { Setups } & \$ 240,000 & \text { number of setups } & 6,000 \\\hline \text { Purchasing } & 160,000 & \text { number of parts } & 20,000 \\\hline \text { Other overhead } & 300,000 & \text { direct labour hours } & 80,000 \\\hline\end{array}$ The following information about the jobs was given for September. $\begin{array}{|l|r|r|r|r|}\hline & \text { Job 101 } & \text { Job 102 } & \text { Job 103 } & \text { Job 104 } \\\hline \text { Balance 9/1 } & \$ 64,900 & \$ 40,770 & \$ 30,500 & 0 \\\hline \text { Direct materials } & 54,000 & 37,900 & 25,000 & 11,000 \\\hline \text { Direct labour } & 80,000 & 38,500 & 43,000 & 21,000 \\\hline \text { Number of setups } & 40 & 10 & 30 & 200 \\\hline \text { Number of parts } & 300 & 80 & 400 & 500 \\\hline \text { Direct labour hours } & 5,000 & 2,400 & 5,200 & 1,200 \\\hline\end{array}$ By September 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process. -Refer to the figure.The ending work in process would consist of the costs of what jobs?

The following information is available pertaining to the Production Division: $\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$ $\text { Production information pertaining to Job } 4 \text { X5: }$ $\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$ -Refer to the figure.What is the overhead rate for the Finishing Department based on machine hours?

What is the term for a collection of all job cost sheets?

What are the three inventory accounts on a balance sheet for a manufacturer?

The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A: $\begin{array} { l l } \text { Direct materals placed into production } & \$ 9,000 \\\text { Direct labour hours warked } & 300 \text { hours } \\\text { Direct labou rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$ Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units. -Refer to the figure.One-half of Job X4A was sold for $10,000.What is the total amount of costs assigned to Job X4A?

Which of the following firms would make extensive use of service costing?

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?

What is the term for the maximum output that can be realized if everything operates efficiently?

Unit costs are critical information for what type of financial reporting?

The following information is available pertaining to the Production Division: $\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$ $\text { Production information pertaining to Job } 4 \text { X5: }$ $\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$ -Refer to the figure.Departmental overhead notes for the Mixing Department are based on direct labour hours,while departmental overhead rates for the Finishing Department are based on machine hours.Based on departmental overhead rates,what is the cost of Job 4X5?

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5: Factory overhead is applied using a plant-wide rate based on direct labour hours. $\begin{array} { l l } \text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 50 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$ Factory overhead was budgeted at $60,000 for the year and the direct labour hours were estimated to be 15,000. Job XY5 consists of 50 units. -Refer to the figure.What is the materials cost per unit for Job XY5?