1 JOB COSTING AND OVERHEAD Key Topics to Know Differences and similarities between job order and process costing Key document is the Job Cost Sheet Flow of product costs through inventory accounts to cost of goods sold o Raw materials o Work in process including manufacturing overhead o Finished goods o Cost of goods sold Flow of overhead costs: o How to compute predetermined overhead rates o Use of the Overhead account o How to apply overhead costs to production o How to compute over and under applied overhead o How to close it to the appropriate account o How to account for the under or over applied amount on the schedule of cost of goods sold. Flow of product costs and overhead costs through the three inventory accounts and overhead account into cost of goods sold. Journal entries required in a Job Order Cost system. Page 1 of 16
2 Problems Problem #1 The J & M Plastics Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Estimated and actual data for direct labor and manufacturing overhead for the last year are as follows: Estimated Actual Direct labor hours 500, ,000 Manufacturing overhead $1,000,000 $965,000 Required: a) Compute the predetermined overhead rate for the year b) Calculate the overhead applied for the year. c) What is the amount of over-applied or under-applied overhead? d) Journalize the entry to close the balance in overhead to COGS Problem #2 Dapper Corporation had one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $8,500 Purchased during the month $42,000 Used in production $48,500 Labor: Direct labor-hours worked 2,200 Direct labor cost incurred $25,520 Actual manufacturing overhead costs incurred $52,800 Inventories: Raw materials, May 30? Work in process, May 30 $32,190 Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. Required: Compute the cost of goods manufactured for May. Page 2 of 16
3 Problem #3 The Jordan Company uses a job order costing system and applies overhead cost to jobs on the basis of direct labor hours. The following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost of $360,000 and direct labor hours of 900. The following transactions took place during the year: a. Raw materials purchased, $200,000. b. Raw materials used in production (all direct materials), $185,000. c. Salary and wages incurred: Direct labor (975 hours) 230,000 Indirect labor 90,000 Selling & administrative salaries 110,000 d. Utility costs incurred, $70,000 (90% related to factory operations, remainder to selling & administrative) e. Maintenance costs were incurred in the factory, $54,000. f. Advertising costs were incurred, $136,000. g. Depreciation was recorded for the year, $95,000 (80% related to factory equipment, remainder to selling & adm equip.) h. Rental costs incurred on the buildings, $120,000 (85% related to factory operations, remainder to selling & adm.) i. Manufacturing overhead was applied to jobs j. Cost of goods manufactured for the year, $770,000. k. Sales on account for the year totaled $1,200,000 with a cost to produce of $800,000. l. The balances in the inventory accounts at the beginning of the year were: Raw materials 30,000 Work in process 21,000 Finished goods 60,000 Required: a) Prepare the journal entries to record the information given above. b) Prepare T-accounts for Raw Materials, Work in Process, Finished Goods and Manufacturing Overhead. Post the relevant journal entries above to each T-account. Determine the ending balance in each account. c) What is the amount of over or under-applied overhead? d) Journalize the entry to transfer the ending in the overhead account to cost of goods sold. e) Job 412 was one of the many jobs started and completed during the year. The job required $8,000 in direct materials and 39 hours of direct labor time at a total direct labor cost of $9,200. The job contained only four units. If the company bills at a price 60% above the unit cost on the job cost sheet, what price per unit Page 3 of 16
4 would have been charged to the customer? Problem #4 Allenton Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 31,000 machine-hours and incur $248,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, $411,000. b. Raw materials were requisitioned for use in production, $409,000 ($388,000 direct and $21,000 indirect). c. The following employee costs were incurred: direct labor, $145,000; indirect labor, $61,000; and administrative salaries, $190,000. d. Selling costs, $148,000. e. Factory utility costs, $12,000. f. Depreciation for the year was $121,000 of which $114,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. g. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 29,000 machine-hours. h. The cost of goods manufactured for the year was $783,000. i. Sales for the year totaled $1,107,000 and the costs on the job cost sheets of the goods that were sold totaled $768,000. j. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold. Required: Prepare the appropriate journal entry for each of the items above (a. through j.) assuming that all transactions with employees, customers, and suppliers were conducted in cash. Page 4 of 16
5 Multiple Choice Questions 1. When units are completed, the cost associated with the job is debited to which account? a) Raw Materials Inventory b) Work in Process Inventory c) Finished Goods Inventory d) Cost of Goods Sold 2. Which of the following would be used to apply manufacturing overhead to production for the period? a) Raw Materials Inventory would be debited b) Work in Process Inventory would be debited c) Manufacturing Overhead would be debited d) Work in Process Inventory would be credited 3. If a company uses a predetermined overhead rate, which of the following statements is correct? a) Manufacturing Overhead will be debited for estimated overhead b) Manufacturing Overhead will be credited for estimated overhead c) Manufacturing Overhead will be debited for actual overhead d) Manufacturing Overhead will be credited for actual overhead 4. Mantilla Inc. estimated manufacturing overhead to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The journal entry to close the balance in the Manufacturing Overhead account would include which of the following? a) Cost of Goods Sold would be credited for $15,000 b) Cost of Goods Sold would be credited for $5,000 c) Cost of Goods Sold would be debited for $5,000 d) Cost of Goods Sold would be debited for $15, Cost of goods sold is the amount of cost transferred a) From of Finished Goods Inventory and into Cost of Goods Sold. b) From of Work in Process Inventory and into Cost of Goods Sold. c) From of Work in Process Inventory and into Manufacturing Overhead. d) From of Work in Process Inventory and into Finished Goods Inventory. Page 5 of 16
6 6. Arthur Company provided the following information for the year: Direct materials used 110,000 Direct labor used (5,000 hours) 150,000 Manufacturing overhead incurred 166,000 The predetermined overhead rate was $35 per direct labor hour for the year. Assuming the ending balance in Work in Process Inventory is $17,000, what was cost of goods manufactured? a) $260,000 b) $426,000 c) $435,000 d) $418, Jackson Company had the following information for the year: Direct materials used 190,000 Direct labor used (5,000 hours) 245,000 Manufacturing overhead incurred 273,000 Jackson Company calculated a predetermined overhead rate using estimated overhead of $320,000 and 8000 estimated direct labor hours. Finished Goods Inventory had a balance of $9,000 at the end of the year. What was adjusted cost of goods sold? a) $715,000 b) $708,000 c) $706,000 d) $699, Homer Inc. had the following information for the preceding year: Beginning balance Ending balance Raw materials 0 0 Work in process?? 35,000 Finished goods?? 30,000 The following additional information is available for the year: Direct materials used 200,000 Direct labor 150,000 Manufacturing overhead applied 160,000 Page 6 of 16
7 Cost of goods manufactured 525,000 Cost of goods sold (unadjusted) 544,000 What was the beginning Finished Goods Inventory balance on 1/1? a) $49,000 b) $65,000 c) $50,000 d) $69, Hibshman Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $6.82 per machine-hour and the estimated total fixed manufacturing overhead was $230,200. The predetermined overhead rate for the recently completed year was closest to: a) $29.84 b) $23.15 c) $23.02 d) $ CR Corporation has the following estimated costs for the next year: Direct materials $4,000 Direct labor $20,000 Rent on factory building $15,000 Sales salaries $25,000 Depreciation on factory equipment $8,000 Indirect labor $10,000 Production supervisor s salary $12,000 CR Corporation estimates that 20,000 labor-hours will be worked during the year. If overhead is applied on the basis of direct labor-hours, the overhead rate per hour will be: a) $2.25 b) $3.25 c) $3.45 d) $4.70 Page 7 of 16
8 11. Sirmons Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 70,000 labor-hours. The estimated variable manufacturing overhead was $9.93 per labor-hour and the estimated total fixed manufacturing overhead was $1,649,200. The actual labor-hours for the year turned out to be 74,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to: a) $32.22 b) $9.93 c) $33.49 d) $ Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,900 hours and the total estimated manufacturing overhead was $341,890. At the end of the year, actual direct labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the year was $336,890. Overhead at the end of the year was: a) $22,920 underapplied b) $17,920 overapplied c) $17,920 underapplied d) $22,920 overapplied 13. The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct laborhours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost for the job on its job cost sheet would be: a) $3,259 b) $2,741 c) $2,287 d) $4,715 Page 8 of 16
9 14. Smallwood Corporation has provided the following data concerning manufacturing overhead for January: Actual manufacturing overhead incurred $64,000 Manufacturing overhead applied to Work in Process $59,000 Cost of Goods Sold was $223,000 prior to closing out its Manufacturing Overhead account. The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true? a) Manufacturing overhead for the month was overapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 b) Manufacturing overhead for the month was underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000 c) Manufacturing overhead for the month was underapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000 d) Manufacturing overhead for the month was overapplied by $5,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $218, Caber Corporation applies manufacturing overhead on the basis of machinehours. At the beginning of the year, total estimated overhead was $60,600. Actual manufacturing overhead for the year was $59,000 and actual machinehours were 5,900. The predetermined overhead rate for the year was $10.10 per machine-hour. Overhead for the year was: a) $1,010 underapplied b) $590 overapplied c) $1,010 overapplied d) $590 underapplied 16. Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $139,080 Estimated machine-hours 3,800 Actual manufacturing overhead $137,000 Actual machine-hours 3,780 Page 9 of 16
10 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: a) 136,269 b) $138,348 c) $136,987 d) $137, Meyers Corporation had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials $17,000 $20,000 Finished Goods $50,000 $44,000 Work in Process $9,000 $11,000 During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The predetermined overhead rate was $8 per direct labor-hour, and direct labor workers were paid $10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The raw materials purchased during November totaled: a) $42,000 b) $45,000 c) $36,000 d) $39, On March 1, Metevier Corporation had $37,000 of raw materials on hand. During the month, the company purchased an additional $62,000 of raw materials. During March, $69,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a: a) debit to Work in Process of $69,000 b) debit to Work in Process of $63,000 c) debit to Raw Materials of $69,000 d) credit to Manufacturing Overhead of $6,000 Page 10 of 16
11 19. Chelm Music Corporation manufactures violins, violas, cellos, and fiddles and uses a job-order costing system. What is one of the accounts that Chelm should credit when goods are sold? a) Finished goods b) Work in Process c) Cost of Goods Sold d) Manufacturing Overhead 20. During February, Irving Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $60,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: a) debit to Manufacturing Overhead of $65,000 b) credit to Manufacturing Overhead of $65,000 c) credit to Work in Process of $60,000 d) debit to Work in Process of $60, Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600. At the end of the year, manufacturing overhead was overapplied by $15,900. The balance in the Finished Goods inventory account at the beginning of the year was: a) $15,900 b) $15,400 c) $21,200 d) $36,600 Page 11 of 16
12 Solutions to Problems Problem #1 a) Predetermined overhead rate $1,000,000/500,000 dlh = $2.00 per dlh b) Overhead applied 480,000 dlh * $2.00 = $960,000 c) Under-applied overhead $965, ,000 = $5,000 d) Cost of Goods sold 5,000 Manufacturing overhead 5,000 Problem #2 Direct materials $3,400 Direct labor Manufacturing overhead 9,200 Beginning work in process $17,240 Direct materials used in production $48,500 Direct labor 25,520 Manufacturing overhead ($23.00 per direct labor-hour x 2,200 dlh) 50,600 Total manufacturing costs 124,620 Add: Beginning work in process 17, ,860 Deduct: Ending work in process 32,190 Cost of goods manufactured $109,670 Page 12 of 16
13 Problem #3 a) Predetermined Overhead Rate: $360,000/900 = $400 per direct labor hour Actual direct labor rate: $230,000/975 = $ per direct labor hour a. Raw materials inventory 200,000 Accounts payable 200,000 b. Work in process 185,000 Raw materials inventory 185,000 c. Work in process 230,000 Manufacturing overhead 90,000 Salary & Wage Expense 110,000 Wages payable 430,000 d. Manufacturing overhead 63,000 Utilities Expense 7,000 Accounts payable 70,000 e. Manufacturing overhead 54,000 Accounts payable 54,000 f. Advertising Expense 136,000 Accounts payable 136,000 g. Manufacturing overhead 76,000 Depreciation Expense 19,000 Accumulated depreciation 95,000 h. Manufacturing overhead 102,000 Rent Expense 18,000 Accounts payable 120,000 i. Work in process 390,000 Manufacturing overhead 390,000 (975 dlh x $400/dlh = 390,000) j. Finished goods inventory 770,000 Work in process 770,000 k. Accounts receivable 1,200,000 Sales 1,200,000 Cost of goods sold 800,000 Finished goods inventory 800,000 Page 13 of 16
14 b) Manufacturing OH 90, ,000 63,000 54,000 76, ,000 5,000 overapplied c) Raw Materials Work in Process Finished Goods 30, ,000 21,000 60, , , , , , , ,000 45,000 56,000 30,000 d) Manufacturing overhead 5,000 Cost of goods sold 5,000 e) Cost of manufacturing Job 412: Direct materials $8,000 Direct labor 39 dlh x $ = 9,200 Manufacturing overhead 39 dlh x $ = 15,600 Total Cost $32,800 Units produced 4 Cost per unit $8,200 Markup % 60% Markup 4,920 Selling price Cost + markup = $13,120 Page 14 of 16
15 Problem #4 Predetermined Overhead Rate: $248,000/31,000 = $8 per machine hour a) Raw materials inventory 411,000 Cash 411,000 b) Work in process 388,000 Manufacturing overhead 21,000 Raw materials inventory 409,000 c) Work in process 145,000 Manufacturing overhead 61,000 Administrative salary expense 190,000 Cash 396,000 d) Selling expanses 148,000 Cash 148,000 e) Manufacturing overhead 12,000 Cash 12,000 f) Manufacturing overhead 114,000 Depreciation Expense 7,000 Accumulated depreciation 121,000 g) Work in process 232,000 Manufacturing overhead 232,000 $8 per mh x 29,000 mh = $232,000 h) Finished goods inventory 783,000 Work in process 783,000 Cash 1,107,000 Sales 1,107,000 Cost of goods sold 768,000 Finished goods inventory 768,000 i) Manufacturing overhead 24,000 Cost of goods sold 24,000 Overapplied overhead: 208,000 incurred 232,000 applied = 24,000 overapplied Page 15 of 16
16 Solutions to Multiple Choice Questions 1. C 2. B 3. C 4. C 5. A 6. D 7. D 8. A 9. A 10. A 11. C 12. C 13. D 14. C 15. B 16. B 17. A 18. B 19. A 20. A 21. B Page 16 of 16
TM 3-1 AGENDA: JOB-ORDER COSTING A. The documents in a job-order costing system. 1. Materials requisition form. 2. Direct labor time ticket. 3. Job cost sheet. B. Applying overhead using a predetermined
JOB ORDER COSTING Terms Cost Accounting Process Cost System Job Order Cost System LO 1: Cost Systems Job-Order Costing Used for custom or unique items Each job is accounted for separately Measures cost
1. Cost accounting involves the measuring, recording, and reporting of: A. product costs. B. future costs. C. manufacturing processes. D. managerial accounting decisions. 2. In accumulating raw materials
Chapter 17 Job Order Costing Study Guide Solutions Fill-in-the-Blank Equations 1. Estimated activity base 2. Underapplied 3. Overapplied Exercises 1. An automobile manufacturer produces various lines of
FINANCIAL STATEMENTS Key Topics to Know Cost of good sold statement is prepared from the finished goods inventory account. Cost of goods sold statement has the same format as in financial accounting. Cost
Solution Manual for Introduction to Managerial Accounting 7th Edition by Brewer Garison and Noreen Link download: https://digitalcontentmarket.org/download/solution-manual-for-introduction-tomanagerial-accounting-7th-edition-by-brewer-garison-and-noreen/
Chapter 2 Job Order Costing ANSWERS TO QUESTIONS 1. The difference between job order costing and process costing relates to the type of product or service the company provides, and whether that product
COMPREHENSIVE EXAMINATION A (Chapters 1-4) Approximate Problem Topic Points Minutes A - I Multiple Choice... 20 20 A - II Cost of Goods Manufactured and Sold... 20 15 A - III Job Order Cost Accounting...
Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1 By definition, manufacturing overhead consists of costs that cannot be practically traced to products or jobs. Therefore, if these
PROCESS OPERATIONS ACCT 102 - Professor Johnson Lecture Notes Chapter 16: PROCESS COSTING AND ANALYSIS In Chapter 15, we studied the job order cost accounting system used when a company manufactures products
Introduction: - Product costing Systems are used to compute the product cost per unit. - Product cost per unit is needed for a variety of purpose: o In financial accounting; Used to value inventory and
*Brief Exercise 19-1 0 Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Used Direct Labor Used Factory Overhead (a)
Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous
Chapter 02 - Cost Concepts and Cost Allocation Student: 1. Product costs for a manufacturing company consist of direct materials, direct labor, and overhead. 2. Period cost and product cost are synonymous
Review II NUMBER 1. Which of the following is a characteristic of managerial accounting? a. It is used primarily by external users. b. It often lacks flexibility. c. It is often future-oriented. d. The
CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Explain the characteristics and purposes of cost accounting.
Chapter 20: Job Order Costing DO IT! 1 Accumulating Manufacturing Costs During the current month, Ringling Company incurs the following manufacturing costs: (a) Raw material purchases of $4,200 on account.
Student ID: 22036501 Exam: 061400RR - Cost Concepts and Types of Costing When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit
ACCT 102 GROUP PROJECT INSTRUCTIONS In the business world you will be required to communicate and coordinate projects and results with coworkers and supervisors, therefore, it is up to the group to decide
Chapter 2--Cost Terminology and Cost Behaviors Student: 1. A cost object is anything for which management wants to collect or accumulate costs. 2. A production plant could be a cost object. 3. A specific
REVISION: MANUFACTURING 12 SEPTEMBER 2013 Lesson Description In this lesson we: Revise ledger accounts and the production cost statement Key Concepts Ledger Accounts for Manufacturing Differences between
CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Brief A B Study Objectives Questions Exercises Do It! Exercises Problems Problems 1. Explain the characteristics 1, 2, 3, 4 and purposes of cost
CHAPTER 20 JOB ORDER COST ACCOUNTING SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 8. 2 K 15. 2 K 22.
Test Bank For Cost Accounting Foundations and Evolutions 9th Edition by Kinney and Raiborn Link full download: http://testbankcollection.com/download/test-bank-for-cost-accounting-foundationsand-evolutions-9th-edition-by-kinney/
Chapter 02--Job Order Costing Student: 1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. 2. A manufacturer may employ a job
MULTIPLE-CHOICE QUESTIONS 5-1. d 5-2. c 5-3. a 5-4. b 5-5. b 5-6. a 5-7. a 5-8. e 5-9. a 5-10. b 5-11. c 5-12. e 5-13. d Direct materials $ 17,500 Direct labor 10,000 Applied overhead ($5 500 DLH) 2,500
Beginning Inventories Ending Raw material 61,000 81,000 Work in process 80,000 30,000 Finished goods 90,000 110,000 Direct material used 318,000 Direct Labour 230,000 Manufecturing Overhead-60% of Direct
Chapter 3--Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows Student: 1. Which of the following types of organizations is most likely to have a raw materials inventory account?
A325 Exam 1 review Spring, 2010 The exam is seven problems (each with subsidiary questions) and you have ONE HOUR AND FIFTEEN minutes (1:15) to complete it. You are permitted to bring one page of notes
4-1 Chapter 4 Systems Design: Process Costing Types of Costing Systems Used to Determine Product Costs Process Costing Job-order Costing F Many units of a single, homogeneous product flow evenly through
Chapter 02 Job Order Costing and Analysis True / False Questions 1. A manufacturing company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods
Full file at https://fratstock.eu Chapter 2 Job-Order Costing and Modern Manufacturing Practices QUESTIONS 1. Manufacturers need product costing systems in order to measure and record the cost of manufactured
Chapter 2: Costing Systems: Job Order Costing Student: 1. A job order costing system measures costs of each processes using an inventory account for each. 2. The computations for costs to be transferred
Chapter 2--Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows Student: 1. Which of the following types of organizations is most likely to have a raw materials inventory account?
Student ID: 22099108 Exam: 061681RR - The Costing of Products and Services When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit
Job Costing Systems Types of Product-Costing Systems Process Costing Job-Order Costing Used for production of large, unique, high-cost items. Built to order rather than mass produced. Many costs can be
Chapter 1 Question Review 1. Which of the following is not a characteristic of managerial accounting: a) Emphasizes decisions affecting the future b) Mandatory for external reports c) Need not follow GAAP
17-0 17-1 Chapter 17 Unit costs for decision-making Objectives 17-2 Once you have completed this part of the topic, you should be able to: 1. Explain the importance of unit costs. 2. Identify the costs
PROCESS COSTING FIRST-IN FIRST-OUT METHOD Key Terms and Concepts to Know Differences between Job-Order Costing and Processing Costing Process costing is used when a single product is made on a continuous
A. Chapter 14 (Managerial Accounting). 1. Purposes and Principles. (Page 632) REVIEW FOR EXAM NO. 1, ACCT-2302 (SAC) (Chapters 14-16) a. Provides economic/financial information (both historical and estimated)
Modul ke: 12 Fakultas Ekonomi dan Bisnis Akuntansi Biaya Factory Overhead : Planned, Actual and Applied Suryadharma Sim, SE, M. Ak Program Studi S1 Manajemen The nature of Factory Overhead Factory Overhead
Acct 2301 (Spring 2006) - Exam 3 Student: 1. During 2005, Truman Company incurred manufacturing costs of $40,000 to work on and complete 10,000 gizmos. The company sold 8,000 of the gizmos during the year.
Chapter 2 Systems Design: Job-Order Costing Solutions to Questions 2-1 By definition, overhead costs cannot be practically traced to products or jobs. Therefore, overhead costs must be allocated rather
ing chapter 17(2) OPENING COMMENTS Chapter 17(2) introduces students to managerial job order cost systems. Students will be exposed to the terminology used to describe costs related to manufacturing. The
Case 8-24 1. a. The predetermined overhead rate would be computed as follows: Expected manufacturing overhead cost $3,000,000 = Estimated direct labour-hours 50,000 DLHs =$60 per DLH b. The unit product
Hashemite University Faculty of Economic and Administrative Sciences Department of Accounting- Dr Husam Al-Khadash Course: Managerial Accounting, Course No: 0202311 - mid-term exam Student Name: Student
Chapter 15 Distinguish management accounting from financial accounting Management Management s Accountability to Stakeholders Stakeholders Owners Government Provide Management is accountable for: Operating
chapter 17(2) Job Order Costing OPENING COMMENTS Chapter 17(2) introduces students to managerial job order cost systems. Students will be exposed to the terminology used to describe costs related to manufacturing.
SOLUTIONS TO EERCISES EERCISE 2-1 (15 minutes) 1. F; I 2. V ; D 3. V ; D 4. F; I 5. F; I 6. F; I 7. V ; D 8. F; I 9. F; I 10. V ; D 11. F; I 12. F; I 13. F; I 14. F; I EERCISE 2-2 (15 minutes) 1. Product
Part 1 Study Unit 5 Cost Accumulations Systems Jim Clemons, CMA Ronald Schmidt, CMA, CFM 1 Overview Cost accounting systems record manufacturing activities using a perpetual inventory system, which continuously
COST OF GOODS MANUFACTURES B.COM. PART II Q#1 Following are the balances appear on the Trial Balance of SAMREEN & Co. for the year ended April 30, 1980. Inventory of Goods in Process April, 01 Rs.109,000
Multiple Choice Questions: 1- The Value Chain a- Involves external companies as well as internal activities. b- Is the sequence of business functions in which customer usefulness is added to products or
CHAPTER 17 (FIN MAN); CHAPTER 2 (MAN) JOB ORDER COST SYSTEMS Number Objective Description Difficulty Time AACSB IMA SS GL EO17(2)-1 17-1 Easy 5 min Analytic Cost Management EO17(2)-2 17-1 Easy 5 min Analytic
DEFINITIONS AND CONCEPTS ** CONCEPTS AND DEFINITIONS IN THIS MODULE APPEAR IN VARIOUS CHAPTERS ** Key Terms and Concepts to Know Major Management Activities Planning - formulating long and short-term plans
Chapter 2 Cost Classification & Cost Behaviour Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing) Total Cost / Service Costs The total cost of making a product or
7. Understand the difference between inventoriable vs non inventoriable costs given the type of organization (merchandising vs manufacturing vs service) Inventoriable cost: cost included in the value of
Current Quiz MGT 402 Solved by Atif Ghafoor For more help contact with at (firstname.lastname@example.org) Page 1 Of the following manufacturing operations, which is the best suited to the utilization of a job order
MGT402 Current Online Quiz#3.Nearly 300 MCQ s Solved. Question # 1 of 15 ( Start time: 03:53:53 AM ) Total Marks: 1 A chemical process has normal wastage of 5% of input. In a period, 3,500 Kg of material
Student ID: 21188324 Exam: 061681RR - The Costing of Products and Services When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit
1 MULTIPLE CHOICE 1-2 I certify that I am taking this assessment alone and that I am receiving no help with it except through the use of my textbook and notes. I have not been given the questions in advance.
CHAPTER 2 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Describe cost systems and the flow of costs in a job order system.
Which of the following is correct? Units sold=opening finished goods units + Units produced Closing finished goods units Units Sold = Units produced + Closing finished goods units - Opening finished goods
Exercise 3-12 1. The overhead applied to Ms. Miyami s account would be computed as follows: 2002 2001 Estimated overhead cost (a)... $144,000 $144,000 Estimated professional staff hours (b)... 2,250 2,400
Certified Accounting Technician Examination Intermediate Level Accounting for Costs Thursday 10 December 2009 Time allowed: 2 hours This paper is divided into two sections: Section A ALL 20 questions are
Question 1: What is joint product costing and by-products? Answer 1: A joint product cost is the cost of a production process that yields multiple products at the same time or produces a product that goes
Gatsby s Accounting System and Policies a Images used on the front cover and throughout this book were obtained under license from Shutterstock.com 2017, by Armond Dalton Publishers, Inc. All rights reserved.
COST SHEET Samir K Mahajan COMPONENTS OF TOTAL COST Prime cost: It is the aggregate of direct material cost, direct labour cost and direct expenses. Prime cost or Direct cost = Direct materials + Direct
Chapter 2--Measuring Product Costs Student: 1. Which of the following is notone of the three major manufacturing cost categories? A. Direct materials costs that can be easily traced to a product B. Direct
Chapter 20 HUM 211: Financial & Managerial Accounting Lecture 08: Managerial Accounting (Concepts & Principles) Masud Jahan Department of Science and Humanities Military Institute of Science and Technology
Modul ke: Akuntansi Biaya Direct Material Cost Fakultas 09FEB Diah Iskandar SE., M.Si dan Nurul Hidayah,SE,Ak,MSi Program Studi Akuntansi Effective Cost Control Specific assignment of duties and responsibilities.
Similarities Between Job-Order and Process Costing 4-1 Both systems assign material, labor, and overhead costs to products and they provide a mechanism for computing unit product costs. Both systems use
Lecture 2: Flow of resource costs Cost Object: anything for which a separate measurement of costs is required, e.g. products, services, customers, projects, processes, segments of the value chain, divisions/departments,
E19-4, Determine the total amount of various types of costs. Drew Company reports the following costs and expenses in May. Factory utilities $11.500 $69.100 Depreciation on factory equipment Depreciation
19-2 C 1 COST ACCOUNTING SYSTEMS Process Costing Job Costing Chapter 20 Used for production of large, unique, or high-cost items. Built to order rather than mass produced. Many costs can be directly traced
1 Chapter 2 Introduction to Cost Terms and Purposes Cost A cost is the value of economic resources (e.g., money) sacrificed or used up to achieve a particular objective (e.g., produce a product or perform