Question 1

Job order production is also known as:

Accepted Answer

The answer of Job order production is also known as:
...

Question 2

The target cost for a job using job costing is calculated as:

Accepted Answer

The target cost is the expected selling price of the job minus the desired profit. This ensures that the job can be sold at a competitive price while still earning the desired profit margin. Therefore, option D is the correct choice.

Question 3

A document in a job order costing system that is used to record the costs of producing a job is a(n):

Accepted Answer

A job cost sheet is a document used to record the costs of producing a specific job in a job order costing system. It includes direct materials, direct labor, and manufacturing overhead costs associated with the job.

Question 4

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased,units issued for use in production,and units that remain in the raw materials inventory,is called a(n):

Accepted Answer

A Materials ledger card is a record that keeps track of the quantity and cost of raw materials purchased, issued for production, and remaining in inventory. It is used to manage and control inventory levels and costs. Materials requisitions, purchase orders, materials vouchers, and purchase ledgers are related to the purchasing and procurement process but do not provide a perpetual record of inventory levels and costs.

Question 5

Job A3B was ordered by a customer on September 25.During the month of September,Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor.The job was not finished by the end of September,but needed an additional $3,000 of direct materials in October and additional direct labor of $6,500 to finish the job.The company applies overhead at the end of each month at a rate of 200% of the direct labor cost.
-What is the amount of job costs added to Work in Process Inventory during October?

Accepted Answer

The answer of Job A3B was ordered by a customer...

Question 6

The job order cost sheets used by Greene Company revealed the following:  Job No.135 was completed during May and Jobs No.134 and 135 were shipped to customers in May.What was the company's cost of goods sold for May and the balance of Work in Process inventory on May 31?

Accepted Answer

The answer of The job order cost sheets used by...

Question 7

The Work in Process Inventory account of a manufacturing company has a $4,400 debit balance.The company applies overhead using direct labor cost.The cost sheet of the only job still in process shows direct material cost of $2,000 and direct labor cost of $800.Therefore,the company's predetermined overhead rate is:

Accepted Answer

The Work in Process Inventory account balance ($4,400) includes direct materials ($2,000), direct labor ($800), and applied overhead. Subtracting direct materials and direct labor from the total gives us the applied overhead: $4,400 - $2,000 - $800 = $1,600. The predetermined overhead rate is the applied overhead ($1,600) divided by the direct labor cost ($800), which equals 200% of direct labor cost.

Question 8

Omega Construction manufactures homes to customer specifications.It most likely uses:

Accepted Answer

Job order costing is used for custom made products or services that are produced in distinct batches or orders. Omega Construction manufactures homes to customer specifications, which makes it a perfect fit for job order costing.

Question 9

A job cost sheet shows information about each of the following items except:

Accepted Answer

The job cost sheet includes details about direct labor costs, direct materials costs, and overhead costs assigned to the job, as well as the name of the customer. However, it does not typically include costs incurred by the marketing department in selling the job, as these are considered selling expenses, not production costs.

Question 10

The Work in Process Inventory account of a manufacturing company has a $3,200 debit balance.The company applies overhead using direct labor cost.The cost sheet of the only job still in process shows direct material cost of $1,400 and direct labor cost of $800.Therefore,the amount of applied overhead is:

Accepted Answer

The applied overhead is not directly given, but since the Work in Process Inventory has a debit balance of $3,200 and consists of direct material cost ($1,400) and direct labor cost ($800), the remainder must be the applied overhead. Thus, $3,200 (total WIP) - $1,400 (materials) - $800 (labor) = $1,000 (applied overhead).

Question 11

A job order costing system would best fit the needs of a company that makes:

Accepted Answer

A job order costing system is best suited for companies that produce custom or unique products, such as custom machinery. The cost of each job can be easily tracked and allocated to the specific customer or project.

Question 12

Large aircraft manufacturers normally use:

Accepted Answer

Large aircraft manufacturers typically produce a limited number of unique products (such as specific models of airplanes) with significant variation in production requirements, materials, and labor costs. Therefore, job order costing is the best choice as it allows the manufacturer to assign costs to specific jobs or products based on their unique specifications and production requirements. This method provides more accurate product cost information, which is crucial for pricing decisions, controlling costs, and evaluating profitability.

Question 13

A type of production that yields customized products or services for each customer is called:

Accepted Answer

Job order production involves producing customized products or services for each customer. This type of production is also known as make-to-order production or custom manufacturing.

Question 14

A company that makes which of the following types of products would best be suited for a job costing system?

Accepted Answer

A job costing system would be best suited for a company that produces custom jewelry, as each piece is unique and requires different materials and labor, making it necessary to track the cost of each individual job.

Question 15

Job A3B was ordered by a customer on September 25.During the month of September,Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor.The job was not finished by the end of September,but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October.
-The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred.What is the total cost of the job when it is completed in October?

Accepted Answer

The answer of Job A3B was ordered by a customer...

Question 16

The balance in the Work in Process Inventory at any point in time equals

Accepted Answer

Work in Process Inventory is the inventory of partially completed goods or products that are currently being worked on. It includes the manufacturing costs for all jobs that are in process but not yet completed. Therefore, option C is the correct answer. Options A, B, D, and E do not fully explain the contents of Work in Process Inventory.

Question 17

A job order production system would be appropriate for a company that produces which one of the following items?

Accepted Answer

A job order production system is suitable for customized, one-of-a-kind products or services, such as a landscaping design for a new hospital, which is tailored to specific requirements and cannot be mass-produced.

Question 18

A job cost sheet includes:

Accepted Answer

A job cost sheet includes all the direct materials, direct labor, and applied overhead costs associated with completing a specific job or project. This information is used to determine the total cost of each project and to help make decisions about pricing, resource allocation, and production planning. By tracking these costs over time, companies can identify areas where they may be able to reduce expenses, increase efficiency, or improve profitability. Therefore, the best choice is D, which includes all the necessary elements for a comprehensive job cost sheet.

Question 19

The production activities for a customized product represent a(n):

Accepted Answer

A customized product typically requires specific customization for each individual customer, resulting in a unique product. As such, the production activities for a customized product would be classified as a job, as opposed to a repetitive process or unit production.

Question 20

Job A3B was ordered by a customer on September 25.During the month of September,Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor.The job was not finished by the end of September,but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October.The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred.
-What is the balance in the Work in Process account at the end of September relative to Job A3B?

Accepted Answer

The answer of Job A3B was ordered by a customer...

Quiz 15: Job Order Costing and Analysis

Job order production is also known as:

The target cost for a job using job costing is calculated as:

A document in a job order costing system that is used to record the costs of producing a job is a(n) :

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased,units issued for use in production,and units that remain in the raw materials inventory,is called a(n) :

The job order cost sheets used by Greene Company revealed the following: Job No.135 was completed during May and Jobs No.134 and 135 were shipped to customers in May.What was the company's cost of goods sold for May and the balance of Work in Process inventory on May 31?

Omega Construction manufactures homes to customer specifications.It most likely uses:

A job cost sheet shows information about each of the following items except:

A job order costing system would best fit the needs of a company that makes:

Large aircraft manufacturers normally use:

A type of production that yields customized products or services for each customer is called:

A company that makes which of the following types of products would best be suited for a job costing system?

The balance in the Work in Process Inventory at any point in time equals

A job order production system would be appropriate for a company that produces which one of the following items?

A job cost sheet includes:

The production activities for a customized product represent a(n) :