JOB ORDER COSTING T/F
A company that manufactures custom bridal gowns will use a process costing system to track costs
FALSE
A company that manufactures large quantities of homogenous goods will use a job order costing system.
FALSE
A company that manufactures small quantities of identifiable products will use a process costing system
FALSE
A company that produces sugar will use a job order costing system to track production costs.
FALSE
Cost flows and physical flows of units are identical.
FALSE
If a normal loss is anticipated on all jobs, the overhead application rate should include an amount for the cost of defective units less disposal value
FALSE
In a normal job order costing system, actual factory overhead is applied at the end of the period
FALSE
In a normal job order costing system, factory overhead is applied using actual rates times actual input
FALSE
In a normal job order costing system, factory overhead is applied using predetermined rates times standard input
FALSE
In a standard job order costing system, factory overhead is applied using actual rates times standard input.
FALSE
In a standard job order costing system, factory overhead is applied using predetermined rates times actual input
FALSE
In an actual job-order costing system, factory overhead is assigned to a job continuously during the production process.
FALSE
Normal spoilage is considered a period cost
FALSE
Overapplied factory overhead that is material in amount is closed to cost of good sold at year end
FALSE
Standards can be used in a job order costing system if the products manufactured are varied in nature
FALSE
A company that manufactures custom bridal gowns will use a job order costing system to track production costs
TRUE
A company that manufactures large quantities of homogenous goods will use a process costing system
TRUE
A company that manufactures small quantities of identifiable products will use a job order costing system
TRUE
When indirect labor is applied to a job in process, the manufacturing overhead account is debited
FALSE
When indirect labor is recorded for a job in process, the work in process account is debited
FALSE
When manufacturing overhead is charged to a job, the manufacturing overhead account is debited.
FALSE
When manufacturing overhead is charged to a job, the work in process account is credited.
FALSE
When raw materials are placed into production, the materials inventory account is debited
FALSE
A company that produces sugar will use a process costing system to track production costs.
TRUE
Abnormal spoilage is considered a period cost
TRUE
If a normal loss is anticipated on a specific job, the overhead application rate should include an amount for the cost of defective units less disposal value.
TRUE
In a job order costing system, costs are accumulated for each individual job
TRUE
In a normal job order costing system, factory overhead is applied using predetermined rates times actual input.
TRUE
In a standard job order costing system, factory overhead is applied using predetermined rates times standard input
TRUE
In an actual job order costing system, factory overhead is assigned to a job on a periodic basis.
TRUE
Overapplied factory overhead that is immaterial in amount is closed to cost of good sold at year end.
TRUE
Overapplied overhead that is material in amount is allocated between Finished Goods Inventory, Work in Process, and Cost of Goods Sold at year end
TRUE
Standards can be computed for materials, labor, and overhead.
TRUE
Standards can be used in a job order costing system if the products manufactured are similar in nature
TRUE
When manufacturing overhead is charged to a job, the work in process account is debited
TRUE