A company that uses a job order costing system would make the following entry to record the flow of direct matterials Into productior Multiple Cholce Debit Factory Overhead, credit Raw Materials Inventory. Debit Work in Process Inventory, credit Raw Materials Inventory. Debit Work in Process Inventory, credit Cost of Goods Sold. Debit Finished Goods Inventory, credit Raw Materials Inventory. Debit Work in Process Inventory, credit Factory Overhead.

A company that uses a job order costing system would make the following entry to record the flow of direct matterials Into productior Multiple Cholce Debit Factory Overhead, credit Raw Materials Inventory. Debit Work in Process Inventory, credit Raw Materials Inventory. Debit Work in Process Inventory, credit Cost of Goods Sold. Debit Finished Goods Inventory, credit Raw Materials Inventory. Debit Work in Process Inventory, credit Factory Overhead.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12MC: In a job order cost system, raw materials purchased are debited to which account? A. raw materials...

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In a job order cost system, factory wage expense is debited to which account? A. raw materials inventory B. work in process inventory C. finished goods inventory D. cost of goods sold
In a job order cost system, raw materials purchased are debited to which account? A. raw materials inventory B. work in process inventory C. finished goods inventory D. cost of goods sold
Which of the following statements is true? a. Job-order costing is used only in manufacturing firms. b. Process costing is used only for services. c. Job-order costing is simpler to use than process costing because the recordkeeping requirements are less. d. The job cost sheet is subsidiary to the work-in-process account. e. All of these.
In a job order cost system, indirect labor incurred is debited to which account? A. work in process inventory B. finished goods inventory C. manufacturing overhead D. cost of goods sold
In a job order cost system, overhead applied is debited to which account? A. work in process inventory B. finished goods inventory C. manufacturing overhead D. cost of goods sold
Tuscany Products, Inc. uses a job order cost system. The following accounts have been taken from the books of the company: Required: 1. Analyze the accounts and describe in narrative form what transactions took place. (Use the reference letters a. through f. in your explanations and note that some accounts needed in your explanation have been purposely omitted.) 2. List the supporting documents or forms required to record each transaction involving the receipt or issuance of materials. 3. Determine the ending balances for Materials, Work in Process, and Finished Goods.
Which of the following statements pertaining to job-order costing are TRUE? i. The issuance of indirect materials from the storeroom is recorded on job cost sheets. ii. Overapplied factory overhead can be properly disposed off with a debit to cost of goods sold and a credit to factory overhead. iii. Both an overstated forecast of overhead and an understated forecast of units of the overhead base can cause overhead to be overapplied. ▼ a. i only b. ii only c. i only d. ii and iii only
Which of the following statements is true? (You may select more than one answer.)a. The Manufacturing Overhead account is debited when manufacturing overhead isapplied to Work in Process.b. Job cost sheets accumulate the actual overhead costs incurred to complete a job.c. When products are transferred from work in process to finished goods it results ina debit to Finished Goods and a credit to Work in Process.d. Selling expenses are applied to production using a predetermined overhead ratethat is computed at the beginning of the period.
T F 1. Cost accounting systems measure, record, and report product costs. T F 2. A job order cost system tracks costs from materials inventory to work in process inventory to finished goods inventory to cost of goods sold. T F 3. A job order cost system provides product costs for each manufacturing department or process. T F 4. A receiving report indicates the quantity of materials received and the condition of th- materials received. T F 5. The predetermined factory overhead rates equals estimated total factory overhead costs divided by the minimum activity base. T F 6. Over-applied factory overhead occurs when less than the total factory overhead is applied. T F 7. Work in Process includes direct materials cost, direct labor cost, and applied factory overhead costs. T F 8. Period costs are added to the finished goods account. T F 8. A job order cost system can be used by managers for cost evaluation and control. T F 10. A materials ledger is a separate ledger for each type of work in…
Which of the following statements is TRUE about job - order costing system: a. Actual direct labor and Actual direct materials are used to calculate total manufacturing cost. b. Applied manufacturing overhead costs are traceable costs. Actual manufacturing overhead costs are used to calculate total manufacturing cost. d. Applied overhead for the period is not known until the end of the period. All of the given answers are false. e.
7. True or false
In a job-order costing system, indirect labor cost is usually recorded a :debit Manufacturing Overhead .a C None of the given answer is correct .b C Work in Process .c C .Cost of Goods Sold .d O .Cash or Wage Payable .e O