TRUE OR FALSE 1. Under job order costing system, costs are accumulated per batches. 2. Job cost sheet contains records of actual direct materials, direct labor and factory overhead incurred in completing a job. 3. An oil refinery company will normally use job order costing to accumulate production costs.
TRUE OR FALSE 1. Under job order costing system, costs are accumulated per batches. 2. Job cost sheet contains records of actual direct materials, direct labor and factory overhead incurred in completing a job. 3. An oil refinery company will normally use job order costing to accumulate production costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TRUE OR FALSE
1. Under job order costing system, costs are accumulated per batches.
2. Job cost sheet contains records of actual direct materials, direct labor and factory overhead
incurred in completing a job.
3. An oil refinery company will normally use job order costing to accumulate production costs.
4. Under normal job-order costing system, factory overhead is applied using a predetermined
rate times actual input.
5. A debit balance in the factory overhead account at year end means that factory overhead is
over-applied.
6. A small appliance repair shop will normally use job order costing system.
7. Job order costing manufactures heterogenous products.
8. When goods are sold, their cost are transferred from Work in Process to Finished Goods
Inventory.
9. When indirect materials are requisition, the work in process account is debited.
10. When indirect labor is applied to a job, the factory overhead control account is debited.
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