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Exam 19: Job Order Costing

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Question 51

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Put the following in the order of the flow of manufacturing costs for a company a. Closing under/over applied factory overhead to cost of goods sold b. Materials purchased c. Factory labor used and factory overhead incurred in production d. Completed jobs moved to finished goods e. Factory overhead applied to jobs according to the predetermined overhead rate f. Materials requisitioned to jobs g. Selling of finished product h. Preparation of financial statements to determine gross profit

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b. Materials purchased
f. Materials requ...

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Question 52

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Scooby Company has applied $567,988 of overhead into production on Jobs in the Work in Process account. Actual overhead at the end of the year is $575,000. What is the adjustment for over or underapplied overhead?

A) $7012 Overapplied, increase Cost of Goods Sold
B) $7012 Underapplied, increase Cost of Goods Sold
C) $7012 Overapplied, decrease Cost of Goods Sold
D) $7012 Underapplied, decrease Cost of Goods Sold

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

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Question 53

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When a job is completed in a service organization, the job costs are transferred to the

Direct labor cost is an example of a period cost.

A widely used activity base for developing factory overhead rates in highly automated settings is:

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

The recording of the application of factory overhead costs to jobs would include a credit to:

The document that serves as the basis for recording direct labor on a job cost sheet is the time card.

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. The machine hours for the month of April for all of the jobs was 4,780. Prepare the journal entry to apply factory overhead.

The following budget data are available for Happy Company: If factory overhead is to be applied based on direct labor hours as the cost allocation base for the predetermined overhead rate, the amount of overhead applied into production is

At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,300,000. Closing over/under applied overhead into cost of goods sold would cause net income to:

The details concerning the costs incurred on each job order are accumulated in a work in process account, which is supported by a:

The document authorizing the issuance of materials from the storeroom is the:

A process cost accounting system accumulates costs for each of the departments or processes within the factory.

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. The actual factory overhead for the year was $1,375,000. Determine the over or under applied amount for the year.

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

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. The actual factory overhead for the year was $1,348,800.

A summary of the time tickets for August follows: Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

A staff department or unit is one directly involved in the basic objective of the organization.