Chapter 4

Which of the following product situations is better suited to job order costing than to process costing?

The costs are easily traced to a specific product.

Which of the following is a prime cost?

direct labor

The activity base for service industries is most likely to be ________.

direct labor hours

During production, to what are the costs in job order costing applied?

each individual product

Which document lists the total direct labor used in a specific job?

job cost sheet

Which document shows the cost of direct materials, direct labor, and overhead applied for each specific job?

job cost sheet

In a job order cost system, utility expense incurred is debited to which account?

manufacturing overhead

In a job order cost system, which account shows the overhead used by the company?

manufacturing overhead

In a job order cost system, overhead applied is debited to which account?

work in process inventory