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Exam 17: Job Order Costing

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Question 71

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The current year's advertising costs are normally considered period costs.

A) True
B) False

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Question 72

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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.

A) $17,500 over applied
B) $17,500 under applied
C) $118,250 over applied
D) $118,250 under applied

E) B) and D)
F) None of the above

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Question 73

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

Which of the following would not be found in the accounting system of a service provider?

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

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 balance of Sales for Adams Company at the end of the first quarter?

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is

A receiving report is prepared when purchased materials are first received by the manufacturing department.

Match the costs that follow to the type of product cost a-c) or designate as not a product cost d) . -wood

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

Present entries to record the following summarized operations related to production for a company using a job order cost system: a)Materials purchased on account $176,000 b)Prepaid expenses incurred on account 12,200 c)Materials requisitioned: For production orders 153,700 For general factory use 2,700 d)Factory labor used: On production orders 141,300 For general factory purposes 12,000 e)Depreciation on factory equipment 37,000 f)Expiration of prepaid expenses, chargeable to factory 6,100 g)Factory overhead costs incurred on account 76,000 h)Factory overhead applied, based on machine hours 105,300 i)Jobs finished 415,300 j)Jobs shipped to customers: Cost 412,000 Selling price assume all sold on account)638,000

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

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. Factory overhead applied to production was $32,000. The entry to record the actual factory overhead costs incurred is

Prepare the journal entry for materials and labor, based on the following: Raw materials issued: Job No. 609, $850; for general use in factory, $600 Labor time tickets: Job No. 609, $1,600; $400 for supervision

In a job order cost accounting system, the entry to record the flow of direct materials into production is

Record the journal entries for the following transactions: 1. March 10: 500 units of raw materials were purchased on account at $4.00 per unit. 2. March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872. 3. March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead over applied or under applied for the year? By how much?

On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Overhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix. a) Record the journal entry to transfer raw materials to Job 111407A. b) Record the journal entry for direct labor incurred for Job 111407A. c) Record the journal entry to apply manufacturing overhead to Job 111407A. d) Record the journal entry to transfer Job 111407A to Finished Goods on November 14.

Which of the following products would be manufactured using a job order costing system?

The period costs of a textbook printer would include