Exam 12: Job-Order, process, and Hybrid Costing Systems

When manufacturing overhead is applied to production in a job-order costing system,the accounting records would reflect an increase in which of the following accounts?

The use of raw materials in production is:

Carter Manufacturing Company has two departments,Assembly and Finishing.Carter uses the weighted average method to determine equivalent units.Consider the following data for the Finishing Department for December: Transferred- Direct Direct Units in Material Labor Overhead Total Beginning work in process 2,500 \ 35,200 Started during the month 7,500 Completed during the month 8,000 Ending work in process ( 65\% complete) 2,000 Costs added during month \ 375,000 \ 134,000 \ 26,600 \ 24,400 \ 560,000 Required: 1)Prepare a cost of production report for the Finishing Department. 2)How much cost should be transferred to Finished Goods?

In a job-order costing system,the inventory accounts generally are maintained on a perpetual basis.

What are job cost sheets,and how are they used in a job-order costing system?

O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.During the current accounting period,O'Hare recognized cost of goods sold of $4,850 for Job #132.The recognition of this event will include a decrease to which of the following accounts?

In a job-order costing system,the subsidiary accounts for the Work in Process Inventory account are the:

The application of estimated manufacturing overhead to jobs is:

Bates Manufacturing uses a job-order costing system,and overhead is applied on the basis of direct labor hours.At the beginning of the period,the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Two projects were started and completed in the current accounting period.The following transactions were completed during the period: (a)Used $10,000 of direct material on Project I and $6,800 of direct material on Project II. (b)Labor costs for the two jobs amounted to the following: Project I,$24,000 (2,000 hours); Project II,$44,000 (6,000 hours). (c)Project II was sold during the period for $120,000. The company's gross margin for the period was: (Do not round intermediate calculation.)

The costs of shipping a job to the buyer are recorded on the job's job cost sheet.

Kidd Company uses a process costing system and the weighted average method.The company had 800 units of product in its work in process inventory at the beginning of the period.During the period 3,000 additional units of product were started.At the end of the period there were 1,500 units of product in the Work in Process account.The ending work in process inventory was estimated to be 30% complete.The beginning work in process inventory had a balance of $4,000.Product costs totaling $84,000 were added to work in process during the period.The amount of cost in ending work in process inventory is:

O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.O'Hare Company counted the production supplies on hand at year-end and determined that the amount used was $125.The recognition of this event on the financial statements would include an increase to which of the following accounts?

Cooper Manufacturing is currently working on two jobs.The job order cost sheets for Job 101 and Job 102 showed the following information: Job 101 Job 102 Direct Materials \ 12,000 \ 15,000 Direct labor 24,000 45,000 If overhead is applied to jobs at $0.80 per direct labor dollar,the overhead applied to the two jobs would be:

Needham Company uses a job-order costing system.During the month of September,the company worked on three jobs.The job-order cost sheets for the three jobs contained the following information at the end of September: Job A Job B Job C Beginning Balances \ 4,000 \ 3,000 \ 6,000 Direct Materials 1,000 1,600 2,000 Direct Labor 2,400 4,600 1,800 The company applies overhead at 120% of direct labor cost. During September Job B was completed,and it was sold in October.At the end of September the total cost in Work in Process was:

Select the incorrect statement regarding cost flows through a process costing system.

An indirect material:

Which of the following statement(s)is (are)correct? I.It is easy to distinguish the balance sheet of a company that uses a process costing system from that of a company that uses job-order costing II)A process costing system requires a Work in Process account for each processing department,while a job-order costing system uses a single Work in Process account III)Process costing systems use multiple Finished Goods Inventory accounts

Which source document provides information for the journal entry to transfer costs from the Work in Process Inventory account to the Finished Goods Inventory account?

Indicate whether each of the following statements is true or false. Recognizing depreciation on manufacturing equipment is an asset use transaction.______ Recognizing depreciation on cars driven by a manufacturing company's executive officers is an asset use transaction.______ Recognizing revenue from the sale of goods a company has manufactured is an asset source transaction.______ Recording the cost of goods sold is an asset exchange transaction.______ If overhead was underapplied during a period,the entry to close the Manufacturing Overhead account would increase cost of goods sold.______

Cameron Company uses a process costing system and the weighted average method to account for its production.The following information was available for August: units Costs Work in Process, August 1 100 \ 2,990 Work in Process, August 31 200 (A) During the month,800 units were started into production,and $5,000 in costs were incurred.Ending inventory was 50% complete.The cost of ending inventory would be: (Do not round intermediate calculations.)