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Exam 17: Job Order Costing

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Question 31

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Select the proper journal entry to record the movement of 1,700 units of part number 116B to work in process when each unit of 116B has a value of $2.00.

A)

B)

C)

D)

E) A) and D)
F) B) and D)

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Question 32

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

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a.

This means underapplied o...

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Question 33

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Which of the following would most likely be a period cost?

The following is a list of costs incurred by several business organizations: Classify each of the preceding costs as product costs or period costs. For those costs classified as product costs, indicate whether the product cost is a direct materials cost, direct labor cost, or factory overhead cost. For those costs classified as period costs, indicate whether the period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer. Place an X in the appropriate column.

The recording of the jobs completed would include a debit to:

The direct labor and overhead costs of providing services to clients are accumulated in:

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

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

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:

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter: Job 356, 357, 358 & 359 were completed. Jobs 356 & 357 were sold at a profit of $500 on each job. What is the ending balance of Cost of Goods sold for Zeke Company as of the end of the 1st quarter?

Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $165,000. From the following, select the entry to record the transaction on the day the materials were requisitioned by the production department.

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

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 $1,348,800. 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.

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

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

When a job is completed in a service organization, the job costs are transferred to the

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system: Describe each of the six transactions.

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from finished goods to cost of goods sold.

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