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

Inseparability means that production and consumption are inseparable for services.

The recognition and recording of costs is called:

The effect of uniform production levels on unit production costs can be achieved

A source document

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 manufactured for the month?

Figure 5 - 1 Direct materials placed into production $9,000 Direct labor hours worked 300 hours Direct labor rate per hour $15 Machine hours worked 100 hours Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units. -Refer to Figure 5-1. One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?

Determining the dollar amounts of direct materials, direct labor, and overhead used in production involves:

The association of production costs with the units produced is called .

Figure 5 - 3 Robinson Corporation constructs new homes. Assume that Robinson uses a job costing system. During July 2016, the following transactions occurred: Robinson purchased $4,500 of lumber on account. Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. Depreciation of $1,500 on equipment used to build new houses was recorded. A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash. -Refer to Figure 5-3. The journal entry to record the requisition of lumber for Robinson would include a

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

For a manufacturer, the three inventory accounts on the balance sheet are

The actual costs are not included on a job-order sheet.

In job-order costing, departmental overhead rates and activity-based costing affect only the application of __________ .

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 debited to Finished Goods Inventory in 2011?

The production level the firm expects to attain for the coming year is called:

Figure 5 - 1 Direct materials placed into production $9,000 Direct labor hours worked 300 hours Direct labor rate per hour $15 Machine hours worked 100 hours Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units. -Refer to Figure 5-1. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

Coyote Company had the following selected account balances at the end of 2016: a. Prepare the journal entry to dispose of the factory overhead balance assuming it is written off to Cost of Goods Sold. b. Prepare the journal entry to dispose of the factory overhead balance assuming it is allocated among Work in Process, Finished Goods, and Cost of Goods Sold based on ending balances. c. Which method of disposing of under- or overapplied factory overhead cost is more accurate? Explain.

A job-order costing process would be applicable for an airplane manufacturer.

Costs of normal spoilage are included in overhead and applied to all good units produced.

The document which indicates the type and quantity of each material issued to the factory is called the: