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Exam 2: Job Order Costing

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Question 51

Multiple Choice

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When units are sold,the cost associated with the units is credited to which account?

A) Raw Materials Inventory
B) Work in Process Inventory
C) Finished Goods Inventory
D) Cost of Goods Sold

E) B) and C)
F) C) and D)

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Question 52

Multiple Choice

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Cost of goods manufactured is the amount of cost transferred

A) out of Finished Goods Inventory and into Cost of Goods Sold.
B) out of Finished Goods Inventory and into Work in Process Inventory.
C) out of Work in Process Inventory and into Manufacturing Overhead.
D) out of Work in Process Inventory and into Finished Goods Inventory.

E) All of the above
F) A) and D)

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Question 53

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Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,actual labor hours were 21,000.The amount of manufacturing overhead applied to production would be

When units are completed,the cost associated with the job is credited to which account?

A law firm would most likely use job order costing.A law firm is likely to use job order costing,as each client receives a unique service from the firm.

The predetermined overhead rate is estimated at the end of the period and used to assign manufacturing overhead to jobs that were completed during the period.Accountants estimate the predetermined overhead rate in advance,before the accounting period begins,and use it throughout the period to assign manufacturing overhead costs to specific jobs.

The source document that captures how much time a worker has spent on various jobs during the period is a

When disposed of,overapplied manufacturing overhead will

Santos Inc.had the following information for the preceding year: Additional information for the year is as follows: What was the ending Finished Goods Inventory balance on 12/31?

The total amount of cost assigned to jobs that were completed during the year is the cost of goods sold.The total amount of cost assigned to jobs that were completed during the year is the cost of goods manufactured.

McGown Corp has the following information: Additional information for the year is as follows: Compute the direct materials used in production.

Kilt Company had the following information for the year: Kilt Company used a predetermined overhead rate of $42 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours.Assume the only inventory balance is an ending Work in Process balance of $17,000.How much overhead was applied during the year?

Source documents are used to assign all manufacturing costs to jobs.Direct materials and direct labor are assigned to jobs using source documents such as a materials requisition form and a labor time ticket.However,manufacturing overhead is applied using a predetermined overhead rate.

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

For service firms,the primary driver used to assign cost is direct material.Because service firms tend to be labor intensive,the primary driver used to assign cost is billable hours.

When units are sold,the cost associated with the units is debited to which account?

To eliminate underapplied overhead at the end of the year,Manufacturing Overhead would be debited and Cost of Goods Sold would be credited.If manufacturing overhead is underapplied during the year,Manufacturing Overhead will need to be credited to bring the account balance to zero,while Cost of Goods Sold would be debited.

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

When units are completed,the cost associated with the job is debited to which account?

The Raw Materials Inventory account shows the cost of only direct materials purchased during the period.The Raw Materials Inventory account shows the cost of all materials purchased but not yet issued into production,and includes both direct and indirect material purchases.