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Exam 18: Costing Systems: Job Order Costing

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Question 51

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In a process costing system,product costs are traced to work cells.

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Question 52

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Which of the following is not an objective of product costing systems?

A) To provide information for cost planning
B) To assist in the preparation of the income statement
C) To determine the taxable profits
D) To provide information for product pricing

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Question 53

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As related to a job order costing system,answer the following questions: a.What is a job order costing system? Identify three kinds of companies that would use such as system. b.What is a job order? c.What is the purpose of a job order cost card? Identify the kinds of information recorded in it.

Which of the following entities would probably use a process costing system?

The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the

When direct materials are issued from inventory to production under a job order costing system,an increase is recorded in the

WinLaw is a legal services provider.It is planning to extend its operations by providing tax consultancy services.Which of the following statements will be true if the company extends its operation as planned?

During the first month of the current accounting period,Southern California Company experienced a devastating loss due to a fire.Many of the accounting records were lost and the company is now trying to recreate the lost information.Fragments of data found include the following: 1.A portion of the budget indicates that the overhead rate was $10 per direct labor hour. 2.Job 74 was in process and had incurred $9,600 of direct materials and $14,000 of direct labor (1,000 hours).The company has a single hourly wage rate. 3.During the month,4,500 direct labor hours were worked. 4.Actual overhead costs were $48,000.No indirect materials were used. 5.The Materials Inventory account had a beginning balance of $28,000 and an ending balance of $18,000. 6.The Finished Goods Inventory account had a beginning balance of $12,000 and an ending balance of $26,000. 7.The Work in Process Inventory account had a beginning balance of $17,000. 8.The Cost of Goods Sold is $171,000. Calculate the following amounts: a.Ending work in process inventory account balance,Job No.74 b.Cost of goods completed c.Amount of overhead under- or overapplied. d.Direct materials used e.Direct materials purchased

Ad-on International is an advertising company.It estimated the overhead costs for March,2014,to be $950,000 and direct labor hours to be 5,000 hours.In March,it incurred overhead costs of $1,150,000 and 5,100 labor hours. -What is the overapplied or underapplied overhead for Ad-on International for March,2014?

Job order costing is used by companies that make unique or special-order products.

Disposing under- or overapplied overhead into the Cost of Goods Sold account is related to _____ in the management process.

Which of the following characteristics applies to process costing,but does not apply to job order costing?

In a job order costing system,when overhead costs are applied,they decrease the Work in Process Inventory account.

Financial statements referred by external stakeholders compare actual unit costs with targeted unit costs.

Which of the following cannot be learned by analyzing job order cost cards?

Which of the following accurately describes a difference between job order and process costing systems?

The computations for costs to be transferred out of Work in Process Inventory differ if the production process involves multiple departments rather than a single department.

In a job order costing system,when indirect materials are used,the Overhead account is increased.

A typical operations costing system for a manufacturer incorporates parts of both job order costing and process costing.

Managers' knowledge on unit cost helps in setting reasonable selling prices for products.