Quiz 5: Job Order Costing

A company that produces sugar will use a job-order costing system to track production costs.

A company that produces sugar will use a process costing system to track production costs.

A company that manufactures custom bridal gowns will use a job-order costing system to track production costs.

A company that manufactures custom bridal gowns will use a process costing system to track costs.

A company that manufactures small quantities of identifiable products will use a job-order costing system.

A company that manufactures small quantities of identifiable products will use a process costing system.

A company that manufactures large quantities of homogenous goods will use a process costing system.

In an actual job-order costing system,factory overhead is assigned to a job on a periodic basis.

A company that manufactures large quantities of homogenous goods will use a job-order costing system.

Cost flows and physical flows of units are identical.

In an actual job-order costing system,factory overhead is assigned to a job continuously during the production process.

In a normal job-order costing system,actual factory overhead is applied at the end of the period.

In a normal job-order costing system,factory overhead is applied using actual rates times actual input.

In a normal job-order costing system,factory overhead is applied using predetermined rates times actual input.

In a normal job-order costing system,factory overhead is applied using predetermined rates times standard input.

In a standard job-order costing system,factory overhead is applied using predetermined rates times standard input.

In a standard job-order costing system,factory overhead is applied using actual rates times standard input.

In a standard job-order costing system,factory overhead is applied using predetermined rates times actual input.

In a job-order costing system,costs are accumulated for each individual job.

When raw materials are placed into production,the materials inventory account is debited.

When manufacturing overhead is charged to a job,the work in process account is debited.

When manufacturing overhead is charged to a job,the manufacturing overhead account is debited.

When manufacturing overhead is charged to a job,the work in process account is credited.

When indirect labor is applied to a job in process,the manufacturing overhead account is debited.

When indirect labor is recorded for a job in process,the work in process account is debited.

Overapplied factory overhead that is material in amount is closed to cost of goods sold at year end.

Overapplied factory overhead that is immaterial in amount is closed to cost of goods sold at year end.

Overapplied overhead that is material in amount is allocated between Finished Goods Inventory,Work in Process,and Cost of Goods Sold at year end.

Standards can be used in a job-order costing system if the products manufactured are similar in nature.

Standards can be computed for materials,labor,and overhead.

Standards can be used in a job-order costing system if the products manufactured are varied in nature.

If a normal loss is anticipated on a specific job,the overhead application rate should include an amount for the cost of defective units less disposal value.

If a normal loss is anticipated on all jobs,the overhead application rate should include an amount for the cost of defective units less disposal value.

Normal spoilage is considered a period cost.

Abnormal spoilage is considered a period cost.

The journal entry to record normal spoilage specifically identified with a particular job includes a debit to Work in Process.

The journal entry to record normal spoilage specifically identified with a particular job includes a credit to Work in Process.

Spoilage occurring on specific jobs should be considered in computing predetermined factory overhead rates.

A company that manufactures sugar will use a ____________________ costing system to track production costs

A company that manufactures custom bridal gowns will use a ____________________ costing system to track production costs

A company that manufactures large quantities of homogeneous goods will normally use a ____________________ costing system.

A company that manufactures small quantities of identifiable products will normally use a ____________________ costing system.

Three methods of job-cost valuation are normal,standard,and ____________________.

In a normal job-order costing system,factory overhead is applied using ____________________ rates times ____________________ input.

In a standard job-order costing system,factory overhead is applied using ____________________ rates times ____________________ input.

When a job is begun,the first document in the job-order process is the ___________________________________.

When raw materials are placed into production,the ______________________________ account is debited

When indirect materials are added to a job,the ______________________________ account is debited.

When manufacturing overhead is applied to a job in process,the ______________________________ account is debited

When manufacturing overhead is applied to a job in process,the ______________________________ account is credited.

When indirect labor is recorded for a job in process,______________________________ is debited.

When production is completed on a job,finished goods are transferred to the _____________________________________________ account.

The document that contains all information about the costs of a specific job is a ________________________________________.

The difference between a standard and an actual quantity,price,or rate is a(n)____________________.

Underapplied factory overhead that is immaterial in amount is closed to ___________________________________ at year end.

Underapplied factory overhead that is material in amount is closed to ______________________________,______________________________,and ______________________________ at year end.

If a substandard product can be reworked,it is known as a ____________________.

If a substandard product cannot be reworked,it is known as ____________________.

Which of the following organizations would be most likely to use a job-order costing system? A)the loan department of a bank B)the check clearing department of a bank C)a manufacturer of processed cheese food D)a manufacturer of video cassette tapes

When job-order costing is used,the primary focal point of cost accumulation is the A)department. B)supervisor. C)item. D)job.

In a job-order costing system, A)standards cannot be used. B)an average cost per unit within a job cannot be computed. C)costs are accumulated by departments and averaged among all jobs. D)overhead is typically assigned to jobs on the basis of some cost driver.

What is the best cost accumulation procedure to use when many batches,each differing as to product specifications,are produced? A)job-order B)process C)actual D)standard

Which of the following could not be used in job-order costing? A)standards B)an average cost per unit for all jobs C)normal costing D)overhead allocation based on the job's direct labor hours

Which of the following costing systems allows management to quickly recognize materials,labor,and overhead variances and take measures to correct them? A)yes yes B)yes no C)no yes D)no no

Which of the following costing methods of valuation are acceptable in a job-order costing system? A)yes yes no yes B)yes no yes no C)no yes yes yes D)yes yes yes yes

In a normal cost system,a debit to Work in Process Inventory would not be made for A)actual overhead. B)applied overhead. C)actual direct material. D)actual direct labor.

After the completion of production,standard and actual costs are compared to determine the ____ of the production process. A)effectiveness B)complexity C)homogeneity D)efficiency

A company producing which of the following would be most likely to use a price standard for material? A)furniture B)NFL-logo jackets C)custom-made picture frames D)none of the above

Knowing specific job costs enables managers to effectively perform which of the following tasks? A)estimate costs of future jobs. B)establish realistic job selling prices. C)evaluate job performance. D)all answers are correct.

A job-order costing system is likely to provide better A)yes no no B)no yes yes C)no no no D)yes yes yes

The trend in job-order costing is to A)eliminate the data entry function for the accounting system. B)automate the data collection and data entry functions. C)use accounting software to change the focal point of the job-order system. D)create an Intranet to share information between competitors.

job-order costing and process costing have which of the following characteristics? A)homogeneous products heterogeneous products And large quantities and small quantities B)homogeneous products heterogeneous products And small quantities and large quantities C)heterogeneous products homogeneous products And large quantities and large quantities D)heterogeneous products homogeneous products And small quantities and large quantities

The source document that records the amount of raw material that has been requested by production is the A)job-order cost sheet. B)bill of lading. C)interoffice memo. D)material requisition.

A material requisition form should show all of the following information except A)job number. B)quantity required. C)unit cost. D)purchase order number.

Which of the following statements about job-order cost sheets is true? A)All job-order cost sheets serve as the general ledger control account for Work in Process Inventory. B)Job-order cost sheets can serve as subsidiary ledger information for both Work in Process Inventory and Finished Goods Inventory. C)If material requisition forms are used,job-order cost sheets do not need to be maintained. D)Job-order cost sheets show costs for direct material and direct labor,but not for manufacturing overhead since it is an applied amount.

The primary accounting document in a job-order costing system is a(n) A)bill of materials. B)job-order cost sheet. C)employee time sheet. D)materials requisition.

The cost sheets for incomplete jobs at the end of the period comprise the subsidiary ledger for A)Finished Goods Inventory. B)Raw Material Inventory. C)Work in Process Inventory. D)Supplies Inventory.

The ____ provides management with a historical summation of total costs for a given product. A)job-order cost sheet B)employee time sheet C)material requisition form D)bill of lading

The source document that records the amount of time an employee worked on a job and his/her pay rate is the A)job-order cost sheet. B)employee time sheet. C)interoffice memo. D)labor requisition form.

A credit to Work in Process Inventory represents A)work still in process. B)raw material put into production. C)the application of overhead to production. D)the transfer of completed items to Finished Goods Inventory.

In a job-order costing system,the dollar amount of the entry that debits Finished Goods Inventory and credits Work in Process Inventory is the sum of the costs charged to all jobs A)started in process during the period. B)in process during the period. C)completed and sold during the period. D)completed during the perioD.

Total manufacturing costs for the year plus beginning Work in Process Inventory cost equals A)cost of goods manufactured in the year. B)ending Work in Process Inventory. C)total manufacturing costs to account for. D)cost of goods available for sale.

Which of the following would be least likely to be supported by subsidiary accounts or ledgers in a company that employs a job-order costing system? A)Work in Process Inventory B)Raw Material Inventory C)Accounts Payable D)Supplies Inventory

A journal entry includes a debit to Work in Process Inventory and a credit to Raw Material Inventory.The explanation for this would be that A)indirect material was placed into production. B)raw material was purchased on account. C)direct material was placed into production. D)direct labor was used for production.

Which of the following journal entries records the accrual of the cost of indirect labor used in production? A)debit Work in Process Inventory,credit Wages Payable B)debit Work in Process Inventory,credit Manufacturing Overhead C)debit Manufacturing Overhead,credit Work in Process Inventory D)debit Manufacturing Overhead,credit Wages Payable

The logical explanation for an entry that includes a debit to Manufacturing Overhead control and a credit to Prepaid Insurance is A)the insurance company sent the company a refund of its policy premium. B)overhead for insurance was applied to production. C)insurance for production equipment expired. D)insurance was paid on production equipment.

The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to A)Finished Goods Inventory. B)Work in Process Inventory. C)Cost of Goods Sold. D)Raw Material Inventory.

In a job-order costing system,the use of indirect material would usually be reflected in the general ledger as an increase in A)stores control. B)work in process control. C)manufacturing overhead applied. D)manufacturing overhead control.

A credit to the Manufacturing Overhead control account represents the A)actual cost of overhead incurred. B)actual cost of overhead paid this period. C)amount of overhead applied to production. D)amount of indirect material and labor used during the perioD.

The journal entry to record the incurrence and payment of overhead costs for factory insurance requires a debit to A)Cash and a credit to Manufacturing Overhead. B)Manufacturing Overhead and a credit to Accounts Payable. C)Manufacturing Overhead and a credit to Cash. D)Work in Process Inventory and a credit to Cash.

Overhead is applied to jobs in a job-order costing system A)at the end of a period. B)as jobs are completed. C)at the end of a period or as jobs are completed,whichever is earlier. D)at the end of a period or as jobs are completed,whichever is later.

In a job-order costing system,the subsidiary ledger for Finished Goods Inventory is comprised of A)all job-order cost sheets. B)job-order cost sheets for all uncompleted jobs. C)job-order cost sheets for all completed jobs not yet sold. D)job-order cost sheets for all ordered,uncompleted,and completed jobs.

Underapplied overhead resulting from unanticipated and immaterial price increases for overhead items should be written off by A)decreasing Cost of Goods Sold. B)increasing Cost of Goods Sold. C)decreasing Cost of Goods Sold,Work in Process Inventory,and Finished Goods Inventory. D)increasing Cost of Goods Sold,Work in Process Inventory,and Finished Goods Inventory.

Overapplied overhead would result if A)the plant were operated at less than normal capacity. B)overhead costs incurred were less than costs charged to production. C)overhead costs incurred were unreasonably large in relation to units produced. D)overhead costs incurred were greater than costs charged to production.

Debits to Cost of Goods Sold typically represent the A)transfer of completed items to Finished Goods Inventory. B)costs of items sold. C)selling price of items sold. D)the cost of goods manufactureD.

In a perpetual inventory system,a transaction that requires two journal entries (or one compound entry)is needed when A)raw materials are purchased on account. B)goods are sold for either cash or on account. C)goods are finished and transferred out of Work in Process Inventory. D)overhead is applied to Work in Process Inventory.

Which of the following are drawbacks to applying actual overhead to production? A)A delay occurs in assigning costs to jobs or products. B)Fluctuations in quantities produced during a period could cause varying per-unit charges for fixed overhead. C)Seasonality of overhead costs may cause distortions in job or product costs. D)all answers are correct.

In job-order costing,payroll taxes paid by the employer for factory employees are commonly accounted for as A)direct labor cost. B)manufacturing overhead cost. C)indirect labor cost. D)administrative cost.

Production overhead does not include the costs of A)factory depreciation and supplies. B)factory employees' cafeteria departments. C)production line labor. D)the maintenance department for the factory.

A company producing which of the following would be most likely to use a time standard for labor? A)mattresses B)custom-made picture frames C)floral arrangements D)stained-glass windows

As data input functions are automated,Intranet data becomes more A)complicated to access. B)manufacturing,but not accounting,oriented. C)real-time accessible. D)expensive to install,but easier to use.

The use of standard material or labor costs in job-order costing A)is similar to the use of predetermined overhead rates in a normal costing system. B)will keep actual costs of jobs from fluctuating due to changes in component costs. C)is appropriate for any company making units to customer specification. D)all answers are correct.

Which of the following statements is false? A)While the use of standard costing is acceptable for job-order costing systems,actual cost records should still be maintained. B)It is normally more time-consuming for a company to use standard costs in a job-order costing system. C)Standards can be used in a job-order costing system,if the company usually produces items that are similar in nature. D)Standard costs may be used for material,labor,or both material and labor in a job-order costing environment.

A service organization would be most likely to use a predetermined overhead rate based on A)machine hours. B)standard material cost. C)direct labor. D)number of complaints.

In a production environment that manufactures goods to customer specifications,a job-order costing system A)can be used only if standard costs are used for materials and labor. B)will provide reasonable product cost information only when all jobs utilize approximately the same quantities of material and labor. C)may be maintained using either actual or predetermined overhead rates. D)emphasizes that large customers create the most costs even though they also provide the most revenues.

A unit that is rejected at a quality control inspection point,but that can be reworked and sold,is referred to as a A)spoiled unit. B)scrap unit. C)abnormal unit. D)defective unit.

The cost of abnormal losses (net of disposal costs)should be written off as A)yes no B)yes yes C)no yes D)no no

In a job-order costing system,the net cost of normal spoilage is equal to A)estimated disposal value plus the cost of spoiled work. B)the cost of spoiled work minus estimated spoilage cost. C)the units of spoiled work times the predetermined overhead rate. D)the cost of spoiled work minus the estimated disposal value.

If abnormal spoilage occurs in a job-order costing system,has a material dollar value,and is related to a specific job,the recovery value of the spoiled goods should be A)a scrap inventory account the specific job in process B)the specific job in process overhead C)a loss account the specific job in process D)factory overhead sales

In a job-order costing system,the net cost of normal spoilage is equal to A)estimated disposal value plus the cost of spoiled work. B)the cost of spoiled work minus estimated spoilage cost. C)the units of spoiled work times the predetermined overhead rate. D)the cost of spoiled work minus the estimated disposal value.

Shrinkage should be treated as A)defective units. B)spoiled units. C)miscellaneous expense. D)a reduction of overheaD.

Spoiled units are A)units that cannot be economically reworked to bring them up to standard. B)units that can be economically reworked to bring them up to standard. C)the same as defective units. D)considered abnormal losses.

Abnormal spoilage is A)spoilage that is forecasted or planned. B)spoilage that is in excess of planned. C)accounted for as a product cost. D)debited to Cost of Goods SolD.

Normal spoilage is defined as unacceptable production that A)arises because of a special job or process. B)occurs in on-going operations. C)is caused specifically by human error. D)is in excess of that which is expecteD.

Which of the following would fall within the range of tolerance for a production cycle? A)yes yes B)yes no C)no no D)no yes

The net cost of normal spoilage in a job-order costing system in which spoilage is common to all jobs should be A)assigned directly to the jobs that caused the spoilage. B)charged to manufacturing overhead during the period of the spoilage. C)charged to a loss account during the period of the spoilage. D)allocated only to jobs that are completed during the perioD.

Charleston Company uses a job-order costing system.During April,the following costs appeared in the Work in Process Inventory account: Charleston Company applies overhead on the basis of direct labor cost.There was only one job left in Work in Process at the end of April which contained $5,600 of overhead.What amount of direct material was included in this job? A)$4,400 B)$4,480 C)$6,920 D)$8,000

Jacksonville Company uses a job-order costing system.During May,the following costs appeared in the Work in Process Inventory account: Jacksonville Company applies overhead on the basis of direct labor cost.There was only one job left in Work in Process at the end of May which contained $6,300 of overhead.What amount of direct material was included in this job? A)$ 7,200 B)$ 9,000 C)$11,160 D)$11,790

Wyman Company is a graphic design shop that produces jobs to customer specifications.During January,Job #3051 was worked on and the following information is available: What was the total cost of Job #3051 for January? A)$2,713 B)$2,770 C)$2,812 D)$3,052

Chapman Company Chapman Company uses a job-order costing system.At the beginning of March,the company had two jobs in process with the following costs: Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis. Refer to Chapman Company.What is the overhead application rate per direct labor hour? A)$ 0.50 B)$ 2.00 C)$ 4.25 D)$30.00

Chapman Company Chapman Company uses a job-order costing system.At the beginning of March,the company had two jobs in process with the following costs: Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis. Refer to Chapman Company.How much overhead was included in the cost of Job #461 at the beginning of March? A)$ 144.50 B)$ 153.00 C)$2,200.00 D)$2,456.50

Chapman Company Chapman Company uses a job-order costing system.At the beginning of March,the company had two jobs in process with the following costs: Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis. Refer to Chapman Company.During March,Chapman' employees worked on Job #649.At the end of the month,$714 of overhead had been applied to this job.Total Work in Process at the end of the month was $6,800 and all other jobs had a total cost of $3,981.What amount of direct material is included in Job #649? A)$ 677.00 B)$1,391.00 C)$2,142.00 D)$4,658.00

Mayflower Corporation manufactures products on a job-order basis.The job cost sheet for Job #656 shows the following for September: At the end of September,what total cost appears on the job cost sheet for Job #656? A)$5,725 B)$5,765 C)$6,765 D)$8,325

Trinity Corporation manufactures products on a job-order basis.The job cost sheet for Job #902 shows the following for June: At the end of June,what total cost appears on the job cost sheet for Job #902? A)$ 6,935 B)$ 6,985 C)$ 8,335 D)$10,015

Products at Conroy Manufacturing are sent through two production departments: Fabricating and Finishing.Overhead is applied to products in the Fabricating Department based on 150 percent of direct labor cost and $18 per machine hour in Finishing.The following information is available about Job #297: What is the total cost of Job #297? A)$2,647 B)$3,005 C)$3,093 D)$3,203

Tuscaloosa Company applies overhead to jobs at the rate of 40 percent of direct labor cost.Direct material of $1,250 and direct labor of $1,400 were expended on Job #145 during September.On August 31,the balance of Job #145 was $2,800.The balance on September 30 is: A)$3,210. B)$4,760. C)$5,450. D)$6,010.

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.What is the prime cost of Job #6? A)$42,250 B)$57,250 C)$73,250 D)$82,750

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.What is the total amount of overhead applied to Job #9? A)$18,250 B)$26,350 C)$30,000 D)$31,620

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.What is the total amount of actual overhead? A)$36,000 B)$69,000 C)$93,000 D)$99,960

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.How much overhead is applied to Work in Process? A)$ 69,000 B)$ 99,960 C)$132,960 D)$144,000

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.If Job #13 is completed and transferred,what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period? A)$ 96,700 B)$ 99,020 C)$139,540 D)$170,720

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.Assume the balance in Work in Process Inventory was $18,500 on November 1 and $25,297 on November 30.The balance on November 30 represents one job that contains direct material of $11,250.How many direct labor hours have been worked on this job (rounded to the nearest hour)? A)751 B)1,324 C)1,653 D)2,976

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.What is the prime cost of Job #8? A)$59,100 B)$82,850 C)$86,475 D)$93,680

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.What is the total amount of overhead applied to Job #12? A)$23,750 B)$29,450 C)$39,000 D)$39,188

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.What is the total amount of actual overhead? A)$ 45,000 B)$ 95,000 C)$114,500 D)$119,938

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.How much overhead is applied to Work in Process? A)$ 95,000 B)$ 119,938 C)$ 162,900 D)$ 164,938

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.If Job #15 is completed and transferred,what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period? A)$191,925 B)$201,888 C)$205,284 D)$208,908

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.Assume the balance in Work in Process Inventory was $21,500 on April 1 and $29,520 on April 30.The balance on April 30 represents one job that contains direct material of $12,375.How many direct labor hours have been worked on this job (rounded to the nearest hour)? A)802 B)1,381 C)1,805 D)3,107

Romano Company The following information pertains to Romano Company for September: Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical. Refer to Romano Company.What amount of overhead is applied to Job #323? A)$4,800 B)$5,550 C)$6,300 D)$7,500

Romano Company The following information pertains to Romano Company for September: Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical. Refer to Romano Company.What amount of overhead is applied to Job #325? A)$8,325 B)$7,500 C)$7,000 D)$5,000

Romano Company The following information pertains to Romano Company for September: Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical. Refer to Romano Company.What is the amount of direct materials for Job #325? A)$1,950 B)$1,500 C)$3,700 D)$7,500

Romano Company The following information pertains to Romano Company for September: Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical. Refer to Romano Company Assume that Jobs #323 and #401 are incomplete at the end of September.What is the balance in Work in Process Inventory at that time? A)$18,920 B)$22,620 C)$28,920 D)$30,120

Charleston Company Charleston Company has two departments (Processing and Packaging)and uses a job-order costing system.Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for July: Refer to Charleston Company.What is the overhead application rate per machine hour for Processing? A)$ 0.81 B)$ 1.24 C)$17.80 D)$22.00

Charleston Company Charleston Company has two departments (Processing and Packaging)and uses a job-order costing system.Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for July: Refer to Charleston Company What is the overhead application rate for Packaging? A)$ 0.44 B)$ 2.25 C)$23.00 D)$51.75

Peoria Company Peoria Company has two departments (Processing and Packaging)and uses a job-order costing system.Peoria applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for August: Refer to Peoria Company.What is the overhead application rate per machine hour for Processing? A)$ 0.79 B)$ 1.27 C)$13.22 D)$16.81

Peoria Company Peoria Company has two departments (Processing and Packaging)and uses a job-order costing system.Peoria applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for August: Refer to Peoria Company What is the overhead application rate for Packaging? A)$ 0.44 B)$ 2.28 C)$16.00 D)$36.50

Williams Company Williams Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost.Job #63 is charged with direct material of $12,000 and overhead of $7,200.Job #64 has direct material of $2,000 and direct labor of $9,000. Refer to Williams Company.What amount of direct labor cost has been charged to Job #63? A)$ 6,000 B)$ 7,200 C)$ 8,640 D)$14,400

Williams Company Williams Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost.Job #63 is charged with direct material of $12,000 and overhead of $7,200.Job #64 has direct material of $2,000 and direct labor of $9,000. Refer to Williams Company.What is the total cost of Job #64? A)$10,800 B)$11,000 C)$21,800 D)$30,200

Levine Company Levine Company has a job-order costing system and an overhead application rate of 125 percent of direct labor cost.Job #123 is charged with direct material of $18,000 and overhead of $9,000.Job #124 has direct material of $4,500 and direct labor of $12,000. Refer to Levine Company.What amount of direct labor cost has been charged to Job #123? A)$ 7,200 B)$ 9,000 C)$11,250 D)$18,000

Levine Company Levine Company has a job-order costing system and an overhead application rate of 125 percent of direct labor cost.Job #123 is charged with direct material of $18,000 and overhead of $9,000.Job #124 has direct material of $4,500 and direct labor of $12,000. Refer to Levine Company.What is the total cost of Job #124? A)$15,000 B)$16,500 C)$31,500 D)$43,500

Davis Company Davis Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available: Refer to Davis Company.What is the overhead application rate if Davis uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar)? A)$ 0.20 B)$ 5.00 C)$ 5.38 D)$38.89

Davis Company Davis Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available: Refer to Davis Company.What is the total cost of Job #504 assuming that overhead is applied at the rate of 135% of direct labor cost (rounded to the nearest whole dollar)? A)$192,650 B)$268,250 C)$275,000 D)$329,675

Franklin Company Franklin Company uses a job-order costing system.Assume that Job #309 is the only one in process.The following information is available: Refer to Franklin Company.What is the overhead application rate if Franklin uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar)? A)$ 0.20 B)$ 5.00 C)$ 5.56 D)$36.36

Franklin Company Franklin Company uses a job-order costing system.Assume that Job #309 is the only one in process.The following information is available: Refer to Franklin Company.What is the total cost of Job #309 assuming that overhead is applied at the rate of 130% of direct labor cost (rounded to the nearest whole dollar)? A)$194,800 B)$274,100 C)$306,750 D)$340,075

At the end of the last fiscal year,Sheraton Company had the following account balances: If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is: A)$974,000. B)$974,660. C)$985,340. D)$986,000.

At the end of the last fiscal year,Drury Company had the following account balances: If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is: A)$851,000. B)$852,021. C)$867,979. D)$869,000.

Sanchez Products has no Work in Process or Finished Goods inventories at the close of business on December 31 of the current year.The balances of Sanchez Products' accounts as of December 31 are as follows: Pretax income for the current year is: A)$608,000. B)$660,000. C)$712,000. D)undeterminable from the information given.

Sloane Products has no Work in Process or Finished Goods inventories at the close of business on December 31 of the current year.The balances of Sloane Products' accounts as of December 31 are as follows: Pretax income for the current year is: A)$484,000 B)$530,000 C)$576,000 D)$680,000

Spears Manufacturing Company Spears Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.Spears has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.Spears produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory. Refer to Spears Manufacturing Company.The unfavorable material price variance for sailcloth purchases for the month was A)$ 100. B)$ 495. C)$1,090. D)$1,585.

Spears Manufacturing Company Spears Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.Spears has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.Spears produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory. Refer to Spears Manufacturing Company.Assuming that there was no sailcloth in inventory at the beginning of June,the unfavorable material quantity variance for the month was A)$ 495. B)$ 500. C)$ 990. D)$1,000.

Spears Manufacturing Company Spears Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.Spears has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.Spears produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory. Refer to Spears Manufacturing Company.Spears could set a standard cost for which of the following? A)yes yes yes B)no no no C)yes no no D)no yes yes

Compare and contrast job-order and process costing systems.

Discuss actual costing,normal costing,and standard costing.

What is a "job" as defined in a job-order costing system?

What information should be contained in a subsidiary ledger for Work in Process Inventory in a job-order costing system?

Discuss the basic forms used in a job-order costing system.

Can standard costing be used in job-order costing? If so,what conditions must exist? If not,explain why.

Discuss the accounting treatment of spoilage in a job-order costing system.

Prepare the necessary journal entries from the following information for Alltizer Company,which uses a perpetual inventory system.

Prepare the necessary journal entries from the following information for Parrish Company,which uses a perpetual inventory system.

Perry Company employs a job-order costing system.Only three jobs-Job #205,Job #206,and Job #207-were worked on during January and February.Job #205 was completed February 10;the other two jobs were still in production on February 28,the end of the company's operating year.Job cost sheets on the three jobs follow:

The Robbins Company manufactures special purpose machines to order.On January 1,there were two jobs in process,#705 and #706.The following costs were applied to these jobs in the prior year:

Kelley Corporation,began operations on October 1.It employs a job-order costing system.Overhead is charged at a normal rate of $2.50 per direct labor hour.The actual operations for the month of October are summarized as follows:

Grant Company. Grant Company uses a job-order costing system and develops its predetermined overhead rate based on machine hours.The company has two jobs in process at the end of the cycle,Jobs #177 and #179. Refer to Grant Company.What amount of overhead is charged to Jobs #177 and #179? Machine hours are split between Jobs #177 and #179-65 percent and 35 percent,respectively.Actual machine hours equal budgeted machine hours.

Grant Company. Grant Company uses a job-order costing system and develops its predetermined overhead rate based on machine hours.The company has two jobs in process at the end of the cycle,Jobs #177 and #179. Refer to Grant Company.Fifty-four percent of raw material belongs to Job 17 and 38 percent belongs to Job 179,and the balance is considered indirect material.What amount of raw material used was allocated to overhead as indirect material?

Grant Company. Grant Company uses a job-order costing system and develops its predetermined overhead rate based on machine hours.The company has two jobs in process at the end of the cycle,Jobs #177 and #179. Refer to Grant Company.Labor cost was split 25 percent and 70 percent,respectively,between Jobs #177 and #179 for direct labor.The remainder was indirect labor cost.What are the total costs of Jobs #177 and #179?

Dillman Company manufactures custom-built conveyor systems for factory and commercial operations.The cost accountant for Dillman Company is in the process of educating a new employee,Jerry Cole about the job-order costing system that Dillman Company uses.(The system is based on normal costs;overhead is applied based on direct labor cost and rounded to the next whole dollar. )The following job-order cost records are available for July:

Hodges Company uses a job-order costing system and has the following information for the first week of June:

You are asked to bring the following incomplete accounts of Parrish Printing Corporation up to date through January 31 of the current year.Consider the data that appear in the T-accounts as well as additional information given in items (a)through (i). Parrish's job-order costing system has two direct cost categories (direct material and direct manufacturing labor)and one indirect cost pool (manufacturing overhead,which is allocated using direct manufacturing labor costs).

Treasures Company manufactures picture frames of all sizes and shapes and uses a job-order costing system.There is always some spoilage in each production run.The following costs relate to the current run: The actual cost of a spoiled picture frame is $7.00.During the year 170 frames are considered spoiled.Each spoiled frame can be sold for $4.The spoilage is considered a part of all jobs. Required: