State the false statement of Company C uses job order costing from the following options.

Question

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Answer 1

Question

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

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The company where Daniel works produces skateboards locally but sells them globally for $60 each. Daniel is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them: Standard Quantity per Unit Standard Price Wood 2.50 feet $4.00 per foot Wheels 5.00 wheels $0.50 per wheel Direct labor 0.30 hours $14.00 per hour Actual results: . • Quantity of wood purchased, 225,000 feet; quantity of wood used, 220,000 feet. Quantity of wheels purchased, 418,800 wheels; quantity of wheels used, 400,800 wheels. Actual cost of the wood, $4.20 per foot. Actual cost of the wheels, $0.55 per wheel. • Quantity of DL hours used, 26,400 hours; actual cost of DL hours, $15.20 per hour. Actual units produced, 80,000 skateboards. (a) Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. DM- Wood…

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Answer 2

Question

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

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Answer 3

Question

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

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Answer 4

Question

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

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Answer 5

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

Answer 6

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

Answer 7

Chapter 17, Problem 1STQ

To determine

State the false statement of Company C uses job order costing from the following options.

Answer 8

Expert Solution & Answer

Answer to Problem 1STQ

Option B is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Job order costing:

Job order costing is one of the methods of cost accounting under which is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products are significantly different from each other.

Justification for Incorrect answers:

Option a:

Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the work in process inventory account. This is a process of job order costing. Hence option A is incorrect option.

Option c:

The amount of direct materials used in individual’s jobs is recorded by debiting the work in process inventory account and crediting the material inventory account, as well as entering the amount used on the individual job cost sheets. This is a process of job order costing. Hence option Cis incorrect option.

Option d:

The manufacturing overhead applied to each job is transferred from the manufacturing overhead account to the work in process inventory account, as well as entered on the individual job cost sheets. This is a process of job order costing. Hence, option D is incorrect option.

Justification for Correct answer:

Option b:

Direct labor cost applicable to individual jobs is recorded when paid by a debit work in process inventory and a credit to cash, as well as by entering the amount on the job cost sheets. This is a wrong process of job order costing, need to record work in process inventory as debit and need to credit direct labor cost instead of cash. Hence the option B is correct answer.

Answer 12

Ch. 17 - Prob. 1STQ Ch. 17 - 2. When job costing is in use, underapplied...Ch. 17 - 3. Which of the following businesses would most...Ch. 17 - Prob. 4STQ Ch. 17 - 5. Which of the following are true regarding...Ch. 17 - 6. Which of the following would be the most...Ch. 17 - 7. Using ABC to allocate manufacturing overhead...Ch. 17 - 1. What is a cost accounting system? Ch. 17 - 2. What are the major objectives of a cost...Ch. 17 - 3. What factors should be taken into account in...

State the false statement of Company C uses job order costing from the following options.

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State the false statement of Company C uses job order costing from the following options.

Answer to Problem 1STQ

Explanation of Solution

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Chapter 17 Solutions