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Exam 15: Job Order Costing and Analysis

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Question 31

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In a job order cost accounting system, any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

A) True
B) False

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Question 32

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A source document that production managers use to request materials for manufacturing and that is used to assign materials costs to specific jobs or to overhead is a:

A) Job cost sheet.
B) Production order.
C) Materials requisition.
D) Materials purchase order.
E) Receiving report.

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

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Question 33

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A company uses a job order cost accounting system and applies overhead on the basis of direct labor cost. At the end of a recent period, the company's Goods in Process Inventory account appeared as follows: Write in the blanks for the following: (1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory 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.

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead.

When time ticket information is entered into the accounting system, the journal entry is a debit to Factory Payroll and a credit to Goods in Process Inventory.

The following data relates to the Density Company's first operating period. Calculate cost of ending inventory for each product.

Time tickets for factory employees during the month of August are summarized as follows: Prepare the necessary journal entries to record factory payroll.

A company's manufacturing accounting system applies overhead based on direct labor cost. The company's manufacturing costs for the current year were: direct labor, $57,600; direct materials, $76,800; and factory overhead, $9,600. Calculate the company's overhead allocation rate.

There are two basic types of cost accounting systems: job order costing and periodic costing.

Any material amount of under- or overapplied factory overhead must always be closed to Cost of Goods Sold at the end of an accounting period.

A company's predetermined overhead allocation rate is 130% based on direct labor cost. How much overhead would be allocated to Job No. 105 if it required total direct labor costs of $60,000?

A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under or over applied overhead for the period.

A ___________________________________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost, and is used to allocate factory overhead to specific jobs.

Describe the purpose of a job cost sheet, and explain what information is found on the job cost sheet.

If overhead applied is less than actual overhead, it is:

Explain what a predetermined overhead allocation rate is, how it is calculated, and why it is used.

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: