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Exam 27: Job Order Cost Accounting

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Question 51

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The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

A) True
B) False

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Question 52

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The Manufacturing Overhead Applied account for Djos Domal Company had activity of $567 in indirect materials and supplies,$785 in indirect labor,and $3,455 in other overhead costs recorded in the account at August 31 of the current year.The Manufacturing Overhead Applied account had a total of $4,600 in overhead applied during August.What is the over- or underapplied overhead for August? Prepare the journal entry to close the related overhead accounts.

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Question 53

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Finished Goods beginning and ending balances are $18,000 and $14,000.The cost of goods manufactured for the period was $145,000.Actual manufacturing overhead for the period was $32,000 and applied overhead was $35,000.The adjusted cost of goods sold was:

Under a perpetual inventory system,when goods are sold the Cost of Goods Sold account is ___________________.

How often are direct labor costs entered on the Job Order Cost Sheets?

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Every job includes some idle time that is usually handled in one of two ways.What are they and under what circumstances is each utilized?

If a firm estimates that for the coming year it will have expected total direct labor costs of $60,000 and total manufacturing overhead costs of $36,000,its overhead application rate will be 60 percent.

Briefly describe a Just-in-Time (JIT)system.List the advantages and disadvantages of a JIT system.

Under a perpetual inventory system,when goods are completed the Work in Process Inventory account is ___________________.

The cost data for the Omega Manufacturing Company for the month of April 2016 is given below. (a. )Raw materials and supplies costing $34,000 were purchased. (b. )The summary of materials requisitions shows that materials and supplies costing $30,900 were issued for use in jobs.Direct materials accounted for $28,000,and the balance consisted of indirect materials and supplies. (c. )The payroll summary shows that direct labor costs were $15,000 and indirect labor costs were $3,000.Social security tax withheld was $1,116,Medicare tax withheld was $261,and income tax deductions were $1,550. (d. )Manufacturing overhead of $6,200 was incurred in addition to indirect materials and indirect labor (credit Accounts Payable). (e. )The predetermined overhead application rate is 75 percent of direct labor costs. (f. )The summary of completed jobs shows that the cost of these jobs amounted to $39,600. (g. )The summary of sales invoices shows that goods costing $32,000 were sold on credit for $51,000. Prepare a partial income statement for the month.Adjust the cost of goods sold for the amount of any overapplied or underapplied overhead.

The entry to record applied overhead includes a(n)____________________ to Manufacturing Overhead Applied.

Fill in the blanks for each of the following.(Blanks are indicated by numbers in parentheses. )

The total direct labor charged to all job cost sheets must agree with the direct labor debited to

Indirect labor is recorded by debiting the _________________________ account.

When a perpetual inventory system is used,sales revenue is recorded as products are sold,

A firm purchased 50 units of materials with a unit price of $1.30 on June 1.On June 15,the firm purchased 50 units with a unit price of $1.20.If the firm uses the LIFO method of inventory pricing,the total cost of 65 units issued on June 20 would be

____________________ and ___________________ are the two principal cost accounting systems for capturing and reporting manufacturing costs.

A firm purchased 50 units of materials with a unit price of $1.30 on June 1.On June 15,the firm purchased 50 units with a unit price of $1.20.If the firm uses the FIFO method of inventory pricing,the total cost of 65 units issued on June 20 would be

There is no need to take a physical count of inventory periodically when the perpetual inventory system is used.