Question 2

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Jomo Kenyatta University of Agriculture and Technology *

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Accounting

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Nov 24, 2024

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Question 2 (2 points) Which of the following is a key difference between job order and process costing’ A Job order costing is most appropriate for jobs that are composed of largr quantities of similar items whereas process costing is most appropriate for jobs that require many processes to complete. Job order costing allocates indirect manufacturing costs to jobs whereas proc ess costing charges jobs with the actual amount of indirect cost related to the job C) Job ordei costing accumulates costs by job. whereas process costing accumulates costs by time periods D) Cost pet unit in process costing is determined by dividing the total coat Of the job by the total number of units produced whereas in job order costing the total cost of the job is devided by equivalentnumber of whole units produced. Question 1 (2 points) Which of the following statements about job order and process costing systems is FALSE? A) Job order costing is used to estimate the cost of specific customer jobs because the jobs vary from customer to customer. B) B) The goal of both job order and process costing is to determine the cost of products. C) C C) The cost of mass produced products which are relatively homogeneous or have few or relatively minor differences would most likely be accomplished with process costing. D) D) Moderna's production of Covid-19 vaccine would most likely use job order costing. Question 3 (2 points) In a manufacturing environment A) material cost is charged directly to jobs, but labor and overhead costs must be allocated to jobs using some estimation method. B) material and labor can be directly charged to jobs but overhead must be accumulated and allocated to jobs using an estimation method. C) fixed overhead costs are allocated to jobs using an estimation method, but variable overhead is charged directly to jobs. D) all costs are allocated to jobs using an estimation method. Indicate whether each of the following items would be classified as direct material, direct labor, manufacturing overhead, or other. The wages of saw operators in a cabinet factory The packaging materials for a Samsung phone The salary of the company's X public relations spokesperson Glass vials for vaccines The wages of factory supervisors Property tax on Honda's parts distribution center

The salary of a guard at a federal prison Spare parts to repair the company's manufacturing equipment Question 9 (2 points) Thompson & Company Consultants allocates overhead to client jobs using a predetermined overhead rate based on consultant hours. The following apply to the current year: Estimated overhead cost $120000 Actual overhead cost $128000 Practical consultant hours 6000 Actual consultant hours 5700 How much overhead was applied to client jobs during the year? Question 15 (2 points) Which of the following statements about the allocation of service department costs is TRUE? A) The sequential method of allocation recognizes all of the interrelationships between service departments as well as the relationships between service and production departments. B) The direct method of allocation ignores services provided by service departments to other service departments. C) The reciprocal allocation method recognizes services provided by service departments to production departments as well as the services provided by production departments to service departments. D) Selecting allocation bases for the sequential allocation method is more difficult than selecting allocation bases for the direct allocation method. Question 16 (2 points) Lansing Company has two service departments (SI and S2) and two production departments (Pl and P2). Costs from SI are allocated based on number of employees. Costs from S2 are allocated based on square footage of floor space. The following table provides information on the costs, number of employees and square footage of the four departments: S1 S2 P1 P2 Departmental cost $8000 $14000 $110000 $235000 Employees 20 30 50 40 Square footage 2000 3000 15000 25000 If Lansing uses the direct method to allocate service department cost, how much cost will be allocated from SI to Pl? (Round to the nearest dollar)

A) $3,333 B) $4,444 C) $2,857 D) $3,200

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