FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Job Order Costing and Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Essay

Review LaterAdd Note

Review Later

Lock Co. applies factory overhead to production on the basis of direct labor costs. Assume that at the beginning of the current year the company estimated that direct material costs would be $178,800, direct labor costs would be $154,000, and factory overhead costs would be $231,000. (1) If the $28,000 cost of Lock's Work in Process Inventory included $5,200 of direct labor cost, what amount of direct materials cost was included? (2) If instead $8,100 of the company's $34,300 Finished Goods Inventory was direct materials cost, determine the direct labor cost and factory overhead cost of the finished goods inventory.

Correct Answer

verified

Direct labor + 1.5 (Direct La...

View Answer

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

A company that uses a job order costing system would make the following entry to record the flow of direct materials into production:

A) debit Work in Process Inventory, credit Cost of Goods Sold.
B) debit Work in Process Inventory, credit Raw Materials Inventory.
C) debit Work in Process Inventory, credit Factory Overhead.
D) debit Factory Overhead, credit Raw Materials Inventory.
E) debit Finished Goods Inventory, credit Raw Materials Inventory.

F) D) and E)
G) B) and E)

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

The journal entry to record direct materials used includes a debit to Work in Process Inventory.

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What amount will Andrew debit to Work in Process Inventory for the month of March?

Overapplied overhead should be ________ to the Cost of Goods Sold account when closed.

Portside Watercraft uses a job order costing system. During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000, of which $24,000 were indirect. Portside incurred a factory payroll cost of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the issuance of materials to production is:

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 under- or overapplied overhead for the year.

How do manufacturing firms adjust the overapplied or underapplied factory overhead account at the end of an accounting period?

Job order costing would be appropriate for companies that produce pencils.

Finished goods inventory is $190,000. If overhead applied to these goods is $72,000, and the overhead rate is 120% of direct labor, how much direct materials cost was incurred in producing the inventory?

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:

A document in a job order costing system that is used to record the costs of producing a job is a(n) :

There are two basic types of cost accounting systems: job order costing and periodic costing.

The target cost for a job using job costing is calculated as:

A ________ accounting system accumulates production costs and assigns them to products or services.

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.

A time ticket is a source document used to record the total number of hours worked and serves as a source document for entries to record direct labor costs.

Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.

The total costs on job cost sheets for jobs that are not yet completed equals the balance in the Finished Goods Inventory account.

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