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Exam 5: Job-Order Costing

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Question 101

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Which of the following costs is not included on a job-order cost sheet?

A) direct material costs
B) applied plantwide overhead costs
C) direct labor costs
D) actual plantwide overhead costs

E) A) and B)
F) B) and C)

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Question 102

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The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

A) True
B) False

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Question 103

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When materials are requested for production the cost is removed from ____________ and added to ____________.

Figure 5-13. During February, Alexander, Inc., worked on two jobs with the following data: Overhead is assigned on the basis of direct labor hours at a rate of $12. During February, Job 12 was completed and transferred to finished goods. Job 13 is the only unfinished job at the end of the month. -Refer to Figure 5-13.

Figure 5-11. Olson Corporation constructs new homes. Assume that Olson uses a job costing system. During May of the current year, the following transactions occurred: Olson purchased $4,500 of lumber on account. Olson 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 5-11. The journal entry to record the requisition of lumber for Olson would include a

Figure 5-4. Hill Company uses job-order costing. At the end of the month, the following data was gathered: Hill's selling price is cost plus 50% for each of its products. -Refer to Figure 5-4. What is the total in Finished Goods?

The difference between actual overhead and applied overhead is called an overhead variance.

Figure 5-4. Hill Company uses job-order costing. At the end of the month, the following data was gathered: Hill's selling price is cost plus 50% for each of its products. -Refer to Figure 5-4. What is Cost of Goods Sold for the month?

Figure 5-7. Laudermilk produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plantwide rate of $13 per direct labor hour. Direct labor wages average $8 an hour. Data for Job #3 for the year is: -Refer to Figure 5-7. Compute the cost per unit.

Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows: What is the total of the work-in-process account at July 31?

Match each item with the correct statement below. Answers may be used more than once. a. Job-order cost sheet b. Time ticket c. Materials requisition form -This form may be used to maintain proper control over a firm's inventory of direct materials.

A company has two departments that all goods pass through, machining and assembly. Machining overhead is applied based on machine hours and assembly overhead is applied based on direct labor hours. Data on each department is as follows:

Figure 5-8. John's Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs 812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814, and 816 were finished. The following data has been collected: Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse. -Refer to Figure 5-8. What is the cost of goods sold for September?

Figure 5-3. Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: -Refer to Figure 5-3. Using departmental overhead rates, which of the following is correct?

Which form asks for type, quantity, unit price of direct materials issued, and for the number of the job?

Consider two costing systems, normal costing and actual costing.