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Exam 19: Job Order Costing

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Question 111

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The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

A) Cost of Goods Sold.
B) Finished Goods Inventory.
C) Work in Process Inventory.
D) Indirect Labor.
E) Jobs Overhead Expense.

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Question 112

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Southwick Company uses a job order costing system. On November 1, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepare the general journal entries to record this requisition.

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Question 113

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In a job order costing system, raw materials requisitioned as direct materials are debited to ________; indirect materials are debited to ________.

A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.

Chumley Advertising Agency contracted with a company to prepare an ad campaign. Chumley uses a job order costing system. Chumley estimates that the job will take 140 designer hours at $90 per hour and 85 staff hours at $45 per hour. Chumley uses two overhead rates in applying overhead to jobs: Designer-related at $100 per designer hour and staff-related at $50 per staff hour. Determine the total estimated cost for this job.

The balance in the Work in Process Inventory at any point in time is equal to:

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Adams incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. -Compute the amount of overhead applied to jobs during the year.

The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

Franklin Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct labor cost. Franklin used the following cost predictions: overhead costs $1,285,750, and direct labor costs of $695,000. At year-end, the company's records show that actual overhead costs for the year are $1,278,800, and actual direct labor costs are $692,000. a. Determine the predetermined overhead rate for the year. b. Compute the amount of overapplied or underapplied overhead. c. Prepare the adjusting entry to allocate the over- or underapplied overhead assuming the amount is immaterial.

When the actual overhead incurred during an accounting period is more than the overhead applied to jobs, the overhead is said to be ________.

A time ticket is a source document that an employee uses to report how much indirect labor was performed for a job and is used to determine the amount of direct labor to charge to the job.

A company's file of job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.