FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Job Order Costing

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

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

A) to help control costs
B) to determine client billing
C) to determine department costs within the firm
D) to determine profit

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following entries would not be found on the books of a service provider?

A) a debit to Work in Process and a credit to Materials
B) a debit to Work in Process and a credit to Wages Payable
C) a debit to Work in Process and a credit to Overhead
D) a debit to Cost of Services and a credit to Work in Process

E) A) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

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

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

At the end of the period, Carson Company had the following balances in selected accounts:​​ $\begin{array}{lr}\text { Materials } & 80,000 \\\text { Finished goods } & 190,000 \\\text { Work in process } & 70,000 \\\text { Cost of goods sold } & 1,000,000 \\\text { Factory overhead } & 30,000\end{array}$ (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 job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.

The materials requisition is used to

Cost accounting systems measure, record, and report product costs.

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

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

Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 40,000 hours. There are 4,780 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?

Discuss how job order cost information is used in decision making. What are some possible reasons that actual cost of materials would exceed expected costs for a job?

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, are reported as direct materials inventory.

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

Use the information below for Adams Company to answer the questions that follow. ​ 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 gross profit for Adams Company at the end of the first quarter?

Put the following in the order of the flow of manufacturing costs for a company:​ (a)Closing under/overapplied factory overhead to cost of goods sold (b)Materials purchased (c)Factory labor used and factory overhead incurred in production (d)Completed jobs moved to finished goods (e)Factory overhead applied to jobs according to the predetermined overhead rate (f)Materials requisitioned to jobs (g)Selling of finished product (h)Preparation of financial statements to determine gross profit

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

Which of the following would be most likely to use process costing?

Selected accounts with amounts omitted are as follows:​ ​​ If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?