Chapter 15

cereal

A company that manufactures ________ would NOT use job order costing.

overapplied

At the end of the year, Ferguson Furniture has a Manufacturing Overhead account balance of $4,329 (cr.). This means that Ferguson ________ overhead costs to manufacturing jobs.

$4,250

Wilder, Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 305, the only job still in process at the end of August, has been charged with manufacturing overhead of $2,250. Assuming the balance in Work in Process Inventory is $9,000, the amount of direct materials charged to Job 305 is

debit to manufacturing overhead

How are indirect labor costs recognized in the ledger under job order costing?

costs associated with both must be recorded in the general ledger and job cost sheets

How are time tickets and materials requisition slips similar?

credits to work in process inventory should equal debits to finished goods inventory.

How is the Work in Process Inventory account related to the Finished Goods Inventory account?

debits equaling $19,000

If Hawkins Manufacturing which deals in garments and hangers purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the Raw Materials Inventory would have

it increases cost of goods sold through an adjusting debit

If manufacturing overhead is underapplied, what effect does this have on the Cost of Goods Sold account at the end of the period?

when job is complete

when to compute unit costs in job order costing

increase by $113,000

In the month of October, Tran Incorporated had salaries of $15,000 for factory managers, $18,000 for financial managers, and $42,000 for company executives. They also had wages of $98,000 for factory workers and $64,000 for office workers. How much would the balance of the Factory Labor account change between October 1 and October 31?

posting a $15,000 increase in direct materials to the job cost sheet for job 1074

Stephanie's company uses a job order cost system. Stephanie just made a $15,000 debit to the Work in Process Inventory account for raw materials assigned to job 1074. Which of the following steps does Stephanie also need to complete?

materials requisition slip

Susan needs 20 lbs. of flour to add to the cake mixing machine. Which of the following will she need to obtain the flour from storage?

$90,000

Tektron Industries applies overhead on the basis of 200% of direct labor cost. Job No. 275 is charged with $30,000 of direct materials costs and $40,000 of manufacturing overhead. What are the total manufacturing costs for Job No. 275?

debit to raw materials inventory for $2,230

The Carter Corporation purchased $2,000 of direct materials on account from its largest vendor. Carter also paid $230 in shipping costs. How would Carter record this transaction?

$126,000

The predetermined overhead rate for Neutronics, Inc. is 70% of direct labor cost. The company incurs $250,000 of factory labor costs during the month and $180,000 of that cost is direct labor and $70,000 is indirect labor. Actual overhead incurred was $130,000. What should be the amount of overhead debited to Work in Process Inventory?

job cost sheet

What is the basic form to accumulate the cost of each job under job order costing?

debit to finished goods Inventory

What will the journal entry include when a job is finished?

credit to finished goods inventory

What will the journal entry include when the units are sold?

credit to raw materials inventory.

When indirect materials are used in production, job order costing requires a

A process cost accounting system is appropriate for similar products that are continuously mass produced

Which of the following statements is correct regarding job order and process costing systems?

direct labor

Which of the following would NOT be included in the Manufacturing Overhead account?

cost accounting system

consists of accounts for the various manufacturing costs

costs/units

how to compute unit costs in a job order costing system

cost accounting

involves measuring, recording, and reporting product costs

unique in batches

job order costing products