FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Job Order Costing and Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Using the following accounts and a predetermined overhead rate of 130% of direct labor cost,compute the amount of applied overhead.

A) $78,000.
B) $60,000.
C) $138,000.
D) $71,890.
E) $90,500.

F) B) and C)
G) B) and D)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

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 overhead applied to jobs during the year.

A) $396,000.
B) $424,450.
C) $413,190.
D) $413,200.
E) $403,200.

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

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

If actual overhead incurred during a period exceeds applied overhead,the difference will be a debit balance in the Factory Overhead account at the end of the period.

A time ticket is a source document that an employee uses to report how much indirect labor was performed for a job.

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost. -The journal entry to record the purchase of materials is:

The Work in Process Inventory account of a manufacturing company has a $3,200 debit balance.The company applies overhead using direct labor cost.The cost sheet of the only job still in process shows direct material cost of $1,400 and direct labor cost of $800.Therefore,the amount of applied overhead is:

A job order costing system would best fit the needs of a company that makes:

The balance in the Work in Process Inventory at any point in time equals

At year-end,Marshall Enterprise's Factory Overhead account has a credit balance of $5,000,which is not a material amount.What entry should Marshall make at year-end?

A job cost sheet includes:

Explain how a service firm,such as an advertising agency,might use job order costing.

Labor costs in production can be:

Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs.Cosi expects to incur $800,000 of overhead during the next period,and expects to use 50,000 labor hours at a cost of $10.00 per hour.What is Cosi Company's predetermined overhead rate?

Job order costing is used to determine the cost of producing each job or job lot.

The following information about the Zhang Company is available on December 31: The company applies overhead on the basis of 125% of direct labor costs.Calculate the amount of over- or underapplied overhead.

If overhead is underapplied,it means that individual jobs have been charged too much during the year and the cost of goods sold reported is too high.

A company uses a job order costing system and applies overhead on the basis of direct labor cost.A summary of the company's Work in Process Inventory account for December appears below. Work In Process Fill in the blanks for the following: (1)The total cost of the direct materials,direct labor,and factory overhead for jobs still in progress is $________. (2)The company's overhead application rate is ________% (3)Job No.6 had $26,550 of direct labor cost.Therefore,the job must have had $________ of direct materials cost. (4)Job No.8 had $73,998 of direct materials cost.Therefore,the job must have had $________ of factory overhead cost.

Describe the flow of the employee labor,both direct and indirect,through the inventory accounts.

Chung Corporation uses a job order costing system.Five jobs were worked on during the current year.The predetermined overhead rate is 20% of direct labor costs.The following cost information is available (all materials and time ticket information applies to direct costs): Part 1-Complete job cost sheets for each job. Part 2-Identify the amounts of each of the following accounts at the end of the period a.Work in Process________ b.Finished Goods________ c.Cost of Goods Sold________

Describe the flow of labor costs in a job order costing system,and identify the documents used in the system.