Exam 2: Job Order Costing and Analysis

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 the 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________

When factory payroll is assigned to specific jobs, ________ is debited.

Describe the flow of the raw materials, both direct and indirect, through the inventory accounts from purchase to use.

Job order costing is applicable to manufacturing firms only and not service firms.

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

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

The collection of cost sheets for unfinished jobs makes up a subsidiary ledger controlled by the Work in Process Inventory account in the general ledger.

In comparison to a general accounting system, a cost accounting system for a manufacturing company places an emphasis on:

When a job is finished, its job cost sheet is completed and moved from the file of jobs in process to the file of finished jobs that are yet to be delivered to customers.

Marshall Enterprises charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process, $60,000 to jobs completed but not sold, and $120,000 to jobs finished and sold. 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?

The predetermined overhead rate based on direct labor cost is the ratio of estimated overhead cost to estimated direct labor cost for the period.

The following calendar year information about the Tchulahota Corporation 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.

A materials requisition is a source document used by materials managers of a manufacturing company to order raw materials from suppliers; it serves the same purpose as a purchase order in a merchandising company.

The Merker Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during April of the current year. This table summarizes information provided on each sheet: (a) What is the cost of goods sold for the month of April? (b) What is the cost of the Work in Process inventory on April 30? (c) What is the cost of the finished goods inventory on April 30?

The predetermined overhead rate is used to allocate overhead cost to jobs.

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

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

The two basic types of cost accounting systems are:

A receiving report serves as the source document for recording materials received in both a materials ledger card and in the general ledger.

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