Exam 5: Product and Service Costing: Job-Order System

Purchases of direct materials are recorded as a debit to the __________ account.

Which of the following is a manufactured product?

Unit cost information is needed for

Figure 5 - 4 Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016: Factory overhead rate is $18 per direct labor hour. -Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

Selected account balances of Samaritan Company for 2016 are as follows: Work in Process $35,000 Debit Finished Goods $65,000 Debit Cost of Goods Sold $100,000 Debit Factory Overhead $22,000 Debit Required: a. Were factory overhead costs underapplied or overapplied in 2016? Explain. b. Prepare the journal entry to dispose of the factory overhead balance assuming the amount is immaterial. c. Prepare the journal entry to dispose of the factory overhead balance using the allocation method.

A production process may yield a tangible product or a service and their unique characteristics determine the best approach for developing a cost management system.

Which of the following would NOT use a process costing system?

The document that identifies each job and accumulates its manufacturing costs is called:

Which of the following items is a basic costing system record in a job-order costing system?

Which of the following costing systems assigns actual costs of materials to inventory?

Figure 5-9 The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials. -Refer to Figure 5-9. If the rework is considered abnormal spoilage, what is the cost of job 492?

The costing system assigns costs by the job.

The following information was taken from the job cost sheet for Job 101 for McDonald Manufacturing Company: Date started: December 5, 2016 Date completed: January 21, 2017 Job 101 was sold on account on January 25, 2017, for 160 percent of its cost. Factory overhead is applied on the basis of direct labor costs. Required: a. Prepare the journal entries to record the costs incurred for Job 101 in 2016-2017 for direct materials, direct labor, and factory overhead. b. Prepare the journal entry to record the completion of Job 101. c. What is the predetermined factory overhead rate for McDonald Manufacturing? d. Prepare the journal entries to record the sale of Job 101.

Collossal Company uses a predetermined rate to apply overhead. At the beginning of the year, Collossal estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000. Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Collossal?

Lowland Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. The following information about the jobs was given for September. By September 30, Jobs 1001 and 1003 were completed and sold. The remaining jobs were still in process. Required: 1. Calculate the activity rates for each overhead activity. 2. Calculate the cost of each job for September 30. 3. What is the beginning work in process on September 1 and October 1? 4. What is the cost of goods manufactured? 5. What is the cost of goods sold? 6. Draw the T account for work in process. (include all debits and credits) Prepare the Statement of the Cost of Goods Manufactured.

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

are the source of information for posting the labor cost flows.

Under normal costing, which of the following statements is true regarding factory overhead?

Manufacturers producing unique or customized products would employ a(n)

Figure 5 - 6 In the Monroe Company, the following Job cards were totaled at the end of the month: Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work- in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods. -Refer to Figure 5-6. What is the cost of goods sold for the month?