FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Job Order Costing

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account at $125 per roll for use within the production process.On November 5, 4 rolls of this paper are issued to Job 157A in the Printing Department.The Printing Department records $675 in direct labor and $1,150 of factory overhead to Job 157A.On November 8, Printing transfers Job 157A to the Folding Department.The Folding Department applies $450 in direct labor and $655 in factory overhead to Job 157A.Job 157A is transferred to Finished Goods inventory on November 9. a Journalize the purchase of the paper. b Journalize the transfer of raw materials to work in process, the application of direct labor, and the application of manufacturing overhead to Job 157A while in the Printing Department. c Journalize the transfer of Job 157A to the Folding Department at actual cost. d Journalize the application of direct labor and the application of manufacturing overhead to Job 157A while in the Folding Department. e Journalize the transfer of Job 157A to Finished Goods Inventory at actual cost.

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

Cranston Company estimates the following overhead costs for the coming year: Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. Required: A)Calculate the predetermined overhead rate using direct labor costs as the allocation base. B)Calculate the predetermined overhead rate using machine hours as the allocation base.

Correct Answer

verified

A.$360,000/$600,000 = 60% OF D...

View Answer

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

In the job order costing system, the finished goods account is the controlling account for the factory overhead ledger.

All of the following are examples of activity bases except

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.

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

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once. -serves as the basis for recording direct labor on a job cost sheet

If the under applied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

A manufacturing company applies factory overhead based on direct labor hours.At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000.Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000.What is the predetermined overhead rate per direct labor hour?

The entries to record cost and sale of a finished good on account is

Period costs are

Which of the following is not a reason a service firm would use a job order costing system?

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

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 hours.The actual factory overhead for the year was $1,375,000. a Determine the total factory overhead amount applied. b Calculate the over- or under applied amount for the year. c Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

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

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

Generally accepted accounting principles require companies to use only one factory overhead rate for product costing.