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Exam 17: Job Order Costing

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Question 51

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The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200. a) Prepare the journal entries to record 1) the application of factory overhead to production during July and 2) the jobs completed during July. b) What is the balance of the factory overhead account on July 31? c) Was factory overhead over applied or under applied on July 31? d) Determine the balance of Work in Process on July 31.

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a) 1) Work in Process 72,000
Factory Ove...

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Question 52

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Direct labor cost is an example of a period cost.

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Question 53

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Job order cost accounting systems can be used only for companies that manufacture a product.

Which of the following is the correct flow of manufacturing costs?

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 ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Bar code scanners are now being used to track incoming materials and to electronically transmit this data. Scanners have replaced which of the following?

The materials requisition is used to

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The entry to record the transfer of costs from finished goods to cost of goods sold is

Information about costs developed through a job order cost system cannot be used to evaluate an organization's cost performance.

During August, the receipts and distributions of Material No. B4G9 are as follows: a) Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method. b) Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a

At the end of the period, Carson Company had the following balances in selected accounts: Required: a. The factory overhead balance is relatively small, prepare the journal entry to close the Factory Overhead account assuming a debit balance. What does a debit balance mean? b. The factory overhead balance is relatively small, prepare the journal entry to close the Factory Overhead account assuming a credit balance. What does a credit balance mean?

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

The finished goods account is the controlling account for the

Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead. Required: a) Calculate the overhead application rate for the year. b) What is the amount of applied overhead for the year? c) What is the amount of under or over applied overhead for the year? Indicate whether it is over or under applied.

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

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.

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

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.