FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Job Order Cost Accounting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the purchase of materials is:

A) Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000.
B) Debit Goods in Process Inventory $198,000; credit Accounts Payable $198,000.
C) Debit Raw Materials Inventory $198,000; credit Goods in Process Inventory $198,000.
D) Debit Goods in Process Inventory $195,000; credit Raw Materials Inventory $195,000.
E) Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000.

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

Correct Answer

verified

Show Answer

Question 52

Essay

Review LaterAdd Note

Review Later

Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the costs incurred:

Correct Answer

verified

Actual overhead costs were $55,800. The...

View Answer

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

The Goods in Process Inventory account for AB Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. The cost of units transferred to finished goods is:

Prepare journal entries to record the following transactions and events for April using a job order cost accounting system. (a) Purchased raw materials on credit, $69,000. (b) Raw materials requisitioned: $26,000 direct and $5,400 indirect. (c) Factory payroll totaled $46,000 (paid in cash), including $9,500 indirect labor. (d) Paid other actual overhead costs totaling $14,500 cash. (e) Applied overhead totaling $28,200. (f) Finished and transferred jobs totaling $77,500. (g) Jobs costing $58,800 were sold on credit for $103,000.

If it is a material amount, overapplied or underapplied overhead should be disposed of by allocating it to:

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

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. If Bard incurred total overhead costs of $167,800 during the month, compute the amount of under- or overapplied overhead:

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

The following information is available for the Millennium Corporation for the current year:

A type of production that yields customized products or services for each customer is called:

Overapplied or underapplied overhead should be removed from the Factory Overhead account at the end of each accounting period.

A system of accounting for production operations that uses a periodic inventory system is called a:

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

A job cost sheet shows information about each of the following items except:

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.

BVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor. BVD estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If BVD bases applied overhead on direct labor cost, their overhead application rate for the next period should be:

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

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

At the current year-end, Hardly Company found that its overhead was underapplied by $2,500, and this amount was not deemed to be a material amount. Based on this information, Hardly should