BASIC COST CONCEPT REVIEW PART 8

The source document that records the amount of time a worker time spent on a job and his or her pay rate is the

• job order cost sheet

• workers time ticket

• production order

• labor requisition form

The following type of firms typically would use job-order costing , except?

• a small appliance repair shop

• a manufacturer of commercialpassenger aircraft

• a specialty equipment manufacturer

• a breakfast cereal manufacturer

job order costing and process costing

• inventory tracking system

• cost flow system

• cost accounting system

• pricing system

The job order cost sheet for incomplete jobs at the end of the period

• Finished goods inventory

• Raw materials Inventory

• work-in-process inventory

• Supplies inventory

Which transaction would be recorded in the job cost sheet

• Purchase of direct materials

• payment of direct labor

• payment of factory expenses

• none of the above

Which of the following is not a characteristic of a job order costing system?

• Uses only one Work-in-process account

• it provides a separate record for the cost of each quantity of product that passes through the factory

• it accumulated costs for each department within the factory

• it is best appropriate for companies that manufacture custom goods

The over-applied factory overhead would occur if

• the plant was operated at less than normal capacity

• actual factory overhead costs incurred were less than estimated factory overhead cost

• The actual factory overhead cost incurred were less than factory overhead cost charged to production

• Actual factory overhead cost incurred were greater than factory overhead charged to production

a manufacturing firm produces goods in accordance with customer specifications, commencing production upon receipt of a purchase order, to accumulate the cost of each order, the company would use a

• job order sheet

• production order form

• cost of production report

• material requisition form

Which of the following statements is correct concerning job-order costing?

• Job order costs is mainly used in firms with homogenous products, such as oil refineries.

• Indirect materials are charged to a specific job

• job order costing would be appropriate for a manufacturer of airplane

• all the cost appearing on the job order cost sheet are actual cost

under applied or over applied manufacturing overhead is allocated , if amount considered material by the company can be assigned to

• Raw materials inventory, manufacturing overhead, and direct labor

• Cost of good sold , work in process inventory and finished goods inventory

• Work in process inventory , raw material inventory and cost of goods sold

• Raw materials inventory, work-in-process inventory, and Finished Goods inventory