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Several Terms, Concepts, and Formulas Associated with Job Costing Are

Question 168

Matching

Several terms, concepts, and formulas associated with job costing are listed in the left-hand column below. Various explanations, definitions, and situations are listed on the right. Match each nmbered item to the most appropriate lettered item. Each numbered item has only one correct answer. Each lettered item may be used once, more than once, or not at all.

Premises:
The process of assigning costs to customized goods
Increases to work-inprocess inventory
Cost of direct labour incurred
Loss of market share
Units in batches of clothing with flaws in the material
Deducted from gross margin on the income statement
Identified through an inspection process
Normal costing
Cost pool
Direct material used
Allocated to work-inprocess
Direct and indirect costs of producing goods and services
Allocation base
Overapplied overhead
Job cost record
Responses:
Debit
Process costing
Overhead costs
Opportunity cost of spoilage or rework
Group of costs accumulated for a specific purpose
Never results in under- or overapplied overhead
Period costs
Denominator of overhead allocation rate
Occurs when actual overhead >allocated overhead
Source document
Spoilage
Scrap
Job costing
Occurs when actual overhead < allocated overhead
Product cost
Credit
Numerator of overhead allocation rate
Rework
May result in underapplied overhead

Correct Answer:

Debit
Process costing
Overhead costs
Opportunity cost of spoilage or rework
Group of costs accumulated for a specific purpose
Never results in under- or overapplied overhead
Period costs
Denominator of overhead allocation rate
Occurs when actual overhead >allocated overhead
Source document
Spoilage
Scrap
Job costing
Occurs when actual overhead < allocated overhead
Product cost
Credit
Numerator of overhead allocation rate
Rework
May result in underapplied overhead
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