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Exam 2: Costing Systems- Job Order Costing

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Question 1

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In a job order costing system, the transfer of overhead costs to the Work in Process Inventory account must take place before product unit costs can be computed.

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Question 2

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

A) The balance of Work in Process Inventory at the end of the period
B) The cost of all jobs done for a particular customer
C) The completion time of jobs yet to be completed
D) The type of products ordered by a particular customer

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Question 3

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The following partially completed T accounts summarize the transactions of Carlton Company for last year: At the end of the year, the company closes out the balance in the Overhead account to Cost of Goods Sold. - The applied overhead is

The types of 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.

The production process determines the product costing system needed.

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

To prepare financial statements at the end of the accounting period, the actual overhead cost for the period and the estimated overhead that was applied during the period must be reconciled in a job order costing system.

Regardless of the cost accounting system used, when the products are completed, they are transferred from work in process inventory to finished goods inventory.

A basic part of a job order costing system is the set of procedures and entries used to record the costs incurred for materials, labor, and overhead.

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

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

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

In a job order costing system, indirect labor costs are transferred to the Overhead account by increasing the Factory Payroll account and decreasing the Overhead account.

Bear Country produces hand-carved wooden bears and uses a job order costing system. The following are data on the three jobs worked on in the company's first month of operations: $\begin{array}{|l|l|l|l|}\hline & \text {Smokey} & \text {Rocky} & \text {Curious }\\\hline \text {Number of bears }& 180 & 100 & \$ 0 \\\hline \text {Direct labor hours worked }& 400 & 200 & 140 \\\hline \text {Direct materials cost} & \$ 4,500 & \$ 2,700 & \$ 2,000 \\\hline \text { Direct labor cost} & \$ 6,000 & \$ 3,000 & \$ 2,100\\\hline & & &\end{array}$ Overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $10 per hour. The Smokey and Rocky bears were completed during the month, and the Curious bears remained in work in process at the end of the month. a. Compute the cost transferred to finished goods during the month. b. Compute the unit cost for a Rocky bear.

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

In a job order costing system, a separate job order cost card is used for each individual job.

Applied overhead exceeds actual overhead when the

The balance in the Work in Process Inventory account on April 1 was $26,800, and the balance on April 30 was $22,600. Costs incurred during the month were as follows: direct materials, $41,250; direct labor, $21,300; and overhead, $32,600. What amount was transferred to the Finished Goods Inventory account for April?

Costs assigned to the building of a house should appear on the income statement when

Accounting for the incurrence of __________ does not change significantly between job order costing and process costing.