question archive Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet
Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet
Subject:BusinessPrice: Bought3
Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.
True
False
At the end of the period, Carson Company had the following balances in selected accounts:
Materials $ 80,000
Finished goods 190,000
Work in process 70,000
Cost of goods sold 1,000,000
Factory overhead 30,000
?
(a) The factory overhead balance is relatively small; prepare the journal entry to close the Factory
Overhead account assuming a debit balance. What does a debit balance mean?
(b) The factory overhead balance is relatively small; prepare the journal entry to close the Factory
Overhead account assuming a credit balance. What does a credit balance mean?
The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,375,000.
?
(a) Determine the total factory overhead amount applied.
(b) Calculate the over- or underapplied amount for the year.
(c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.
The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The entry to record the transfer of costs from work in process to finished goods is
a.Finished Goods 540,000
Work in Process 540,000
b.Finished Goods 375,000
Work in Process 375,000
c.Work in Process 540,000
Finished Goods 540,000
d.Work in Process 375,000
Finished Goods 375,000
The materials requisition is used to
a.release finished goods to the shipping department
b.release materials from the storeroom to the factory
c.record and electronically transmit materials data in place of a receiving report
d.record the acquisition of materials from a vendor
Aspen Technologies has the following budget data:
Estimated direct labor hours15,000
Estimated direct labor dollars $90,000
Estimated factory overhead costs$198,000
?
If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is
a.$13.20
b.$2.20
c.$16.50
d.$7.50
The current year's advertising costs are normally considered period costs.
True
False
For which of the following businesses would the job order cost system be appropriate?
a.oil refinery
b.lumber mill
c.hospital
d.canned soup processor
Selected accounts with a credit amount omitted are as follows
Work in Process
Apr. 1 Balance7,000 Apr. 30Goods finished X
30 Direct materials78,400
30 Direct labor195,000
30 Factory overhead136,500
?
Finished Goods
Apr. 1 Balance. 42,000
30 Goods finished 387,000
?
What was the balance of Work in Process as of April 30?
a.$29,900
b.$35,000
c.$8,100
d.$22,900
