Question 04 a. What type of industry is likely to use a job order cost system? Give some examples.
Q: Explain the job order costing income statement and provide a hypothetical example of job order…
A: Step 1 Job Order Costing Income Statement is an Income Statement that expresses Profitability for…
Q: hat factors should be taken into account in deciding whether to use a job order cost system or a…
A: Job Order Cost System-:Job costing pertains to the comprehensive accumulation of production expenses…
Q: What is job order costing? Give some examples
A: Solution: Job order costing is a process of assigning manufacturing cost to individual unit of…
Q: What is process cost, and how is it different from job order costing? What are some examples of a…
A: Process cost is a form of operating cost, which is used for determining the cost of the product at…
Q: Job costing vs process costing. Example, select a company of your choice and explain when they might…
A: Job costing: Job costing is defined as a method of recording the costs of a manufacturing job,…
Q: What is the differences between process costing and job costing. What type of company would general…
A: Job costing is a costing method that is generally used by the firms that are involves in production…
Q: Standard costs are least useful for? Group of answer choices Determining minimum inventory levels.…
A: Standard cost refers to the cost which estimated the actual costs of the production procedure of…
Q: State and explain three (3) differences between a job costing system and a process costing system
A: Introduction: A costing system is used to keep track of the expenses that a company incurs. The…
Q: What
A:
Q: 5) Which one of the following best describes a job cost sheet? a. It is a form used to record the…
A: Financial statements are statements which states the business activities performed by the company .…
Q: of cost accounting systems. Part (b): May a company use both
A: There are two main cost accounting systems: job order costing and process costing. Job order…
Q: Compare and contrast job order costing with one other type of cost accounting system. Then,…
A: It is the system of assigning and accumulating manufacturing costs of an individual unit of…
Q: Oestion 2: Explain with examples how does the Job Characteristic Model (JDM) helps in achieving job…
A: Job Charactristic model Job Charactristic model apply to any job which keep the employee happier…
Q: A job order cost system records and summarizes manufacturing costs by jobs? True False
A: True, A job order cost system records and summarises manufacturing costs by jobs
Q: Q3 Explain the similarities and differences between job order cost and process cost system
A: Job order costing means finding or calculating costs associated with a job that is specific or a…
Q: Provide an example of a manufacturing business that generally would use a job order cost system?
A: Job order costing is a method of costing which is specific job order driven. Job Order costing…
Q: A job order cost system identifies costs with a particular job rather than with a set time period. O…
A: Job costing includes the aggregation of the expenses of materials, overhead and labor for a…
Q: Question1. What is the process costing income statement? Provide a hypothetical example of a…
A: Process costing is a term used in cost accounting to describe one method for collecting and…
Q: Why might a company choose a process costing system over a job order costing system? How are the two…
A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…
Q: QI. Explain how job costing is used in service sectors and manufacturing sectors? Provide examples…
A: Job costing refers to an accounting method which is used in cost accounting; it is designed to track…
Q: Describe how a job order cost system can be used for professional service businesses.
A: Job order Costing: Job order costing provides a separate record of each particular quantity of…
Q: What is the difference between job order costing and process costing? What types of companies use…
A: Costing is the Process of Computing cost of Manufacturing of goods or provision of services. Costing…
Q: Why is the determination of unit cost information using job order costing important in the…
A: Job Costing: In job costing the Cost of Each job is determined separately. The requirement and…
Q: How does job order cost system differ from process costing? 2. Name and describe three major source…
A: Job costing system deals with a unit or multiple units of a distinct product or service. Process…
Q: What are the cost estimation methods? What is their importance and can you provide an example of how…
A: Cost Estimation: The process of predicting the financial and other resources required to finish a…
Q: What types of companies use job order costing systems?
A:
Q: Which one of the following firm is likely to use job costing? A. Courier firm B. Insurance company…
A: Job Costing Under this system,job card is separately prepared for each unit of output and Cost is…
Q: List and explain in your own words the of product costs(manufacturing overhead)
A: Costs are that amount which is incurred during the production of goods and services. The costs which…
Q: Process cost systems use job cost sheets. Select one: O a. FALSE O b. TRUE
A: Process costing is method of costing to trace costs to the units produced. This method is popularly…
Q: What factors should be taken into account in decidingwhether to use job order costing in any given…
A: Job order costing represents a method of costing where the total cost of a particular job is…
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- A new company started production. Job 1 was completed, and Job 2 remains in production. Here is the information from the job cost sheets from their first and only jobs so far: Using the Information provided. A. What Is the balance in work in process? B. What Is the balance in finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M. Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or over applied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102,103, and 104, direct labor hours are 12, 000, 10,000, 11, 000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour. (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101104 using the predetermined factory overhead rate (see above). (i) Finished Job Nos. 101103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and for 50,000 and 45,400, respectively. (k) Transferred under- or over applied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). 2. Post the entries to the work in process and finished goods accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.Summary information from a companys job cost sheets shows the following information: What are the balances in the work in process inventory, finished goods Inventory, and cost of goods sold for April, May, and June?
- When direct labor hours for Job 101 are 30 and the predetermined factory overhead rate is 5/direct labor hour, what is the applied factory overhead amount? (a) 250 (b) 500 (c) 150 (d) It cannot be determined.Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
- Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?Leen Production Co. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of May: a. Compute the total production cost of each job. b. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. c. Compute the selling price per unit for each job, assuming a mark-on percentage of 40%. d. Prepare the journal entries to record the sale of Job 1065.Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows: The materials purchased during April are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. b. Journalize the entry to record the requisition of materials in April. c. Determine the April 30 balances that would be shown in the materials ledger accounts.
- Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or overapplied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102, 103, and 104, direct labor hours are 12,000, 10,000, 11,000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101-104 using the predetermined factory overhead rare (see above). (i) Finished Job Nos. 101-103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and O for 50,000 and 45,400, respectively. (k) Transferred under- or overapplied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). Make compound entries for (b), (d), and (h), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.JOURNAL ENTRIES FOR MATERIAL, LABOR, OVERHEAD, AND SALES Micro Enterprises had the following job order transactions during the month of April. Record the transactions in the general journal, including issuance of materials, labor, and factory overhead applied; completed jobs sent to finished goods inventory; closing of the under- or overapplied factory overhead to the cost of goods sold account; and sale of finished goods. Apr.1 Purchased materials on account, 35,000. 10 Issued direct materials to Job No. 33, 10,000. 11 Issued direct materials to Job No. 34, 8,000. 12 Issued direct materials to Job No. 35, 11,000. 25 Incurred direct labor: On Job No. 33, 6,000 On Job No. 34, 4,000 On Job No. 35, 5,000 25 Applied factory overhead: To Job No. 33, 1,500 To Job No. 34, 1,200 To Job No. 35, 1,600 30 Transferred Job Nos. 3335 to the finished goods inventory account as products F, G, and H, respectively. 30 Sold products F, G, and H for 20,000, 16,000, and 22,000, respectively. 30 Actual factory overhead for Job Nos. 3335, 4,220.
