TirWhich of the following statements related to job cost sheets is TRUE?O a. Ajob cost sheet includes selling and administrative costs.O b. Actual manufacturing overhead costs are included in job cost sheets.O c. Individual job cost sheeßs are used by companies which produce socks.O d. Job cost sheets do not normally include the selling price of the job completed.O e. None of the given answers is TRUE.onOverhead costs are overapplied if the amount applied to Work in Process is:hpfs米161017f1o#33&4678ERYUDHb.5F.%2447

Name: TirWhich of the following statements related to job cost sheets is TR
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Description: TirWhich of the following statements related to job cost sheets is TRUE?O a. Ajob cost sheet includes selling and administrative costs.O b. Actual manufacturing overhead costs are included in job cost sheets.O c. Individual job cost sheeßs are used

The correct option is D. JOB cost sheet do not normally include the selling price of the job…

Business

Accounting

Which of the following statements related to job cost sheets is TRUE? O a. Ajob cost sheet includes selling and administrative costs. O b. Actual manufacturing overhead costs are included in job cost sheets. O c. Individual job cost sheefs are used by companies which produce socks. O d. Job cost sheets do not normally include the selling price of the job completed. O e. None of the given answers is TRUE.

Which of the following statements related to job cost sheets is TRUE? O a. Ajob cost sheet includes selling and administrative costs. O b. Actual manufacturing overhead costs are included in job cost sheets. O c. Individual job cost sheefs are used by companies which produce socks. O d. Job cost sheets do not normally include the selling price of the job completed. O e. None of the given answers is TRUE.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 1MCQ: Which of the following statements is true? a. Job-order costing is used only in manufacturing firms....

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What are the shortcomings of waiting until the actual factory overhead expenses are known before recording such costs on the job cost sheets?
Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs that you consider to be semivariable within the variable category. Remember that variable costs change in total as the volume of production changes.) Indirect labor Indirect materials Insurance on building Overtime premium pay Depreciation of building (straight-line method) Polishing compounds Depreciation of machinery (units-of-production method) Employer’s payroll taxes Property taxes Machine lubricants Employees’ hospital insurance (paid by employer) Labor for machine repairs Vacation pay Janitor’s wages Rent Small tools Plant manager’s salary Factory electricity Product inspector’s wages
Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. Wages of administrative staff Shipping costs on merchandise sold Wages of workers assembling computers Cost of lease on factory equipment Insurance on factory Direct materials used in production of lamps Supervisor salary, factory Advertising costs Property taxes, factory Health insurance cost for company executives Rent on factory
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
A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing company
Darnell Poston, owner of Poston Manufacturing, Inc., wants to determine the cost behavior of labor and overhead. Darnell pays his workers a salary; during busy times, everyone works to get the orders out. Temps (temporary workers hired through an agency) may be hired to pack and prepare completed orders for shipment. During slower times, Darnell catches up on bookkeeping and administrative tasks while the salaried workers do preventive maintenance, clean the lines and building, etc. Temps are not hired during slow times. Darnell found that workers salaries, temp agency payments, rentals, utilities, and plant and equipment depreciation are the largest dollar accounts. He believes that workers salaries and plant and equipment depreciation are fixed, temp agency payments are associated with the number of orders (since temp workers are used to pack and prepare completed orders for shipment), and electricity is associated with the number of machine hours. When the number of different parts stored by Poston exceeds the space in the materials storeroom, Darnell rents nearby warehouse space. He can rent as much or as little space as he wants on a month-to-month basis. Therefore, he believes warehouse rental payments are variable with the number of parts purchased and stored. The account balances for the past six months as well as the six-month total are as follows: Information on number of machine hours, orders, and parts for the six-month period follows: Required: 1. Calculate the monthly average account balance for each account. Calculate the average monthly amount for each of the three drivers. 2. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. Express the results in the form of an equation for total cost. 3. In July, Darnell predicts there will be 420 orders, 250 parts, and 5,900 machine hours. What is the total labor and overhead cost for July? 4. What if Darnell buys a new machine in July for 24,000? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? How? What is the new expected cost in July?
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
Which of the following statements related to job cost sheets is FALSE ? a. Applied manufacturing overhead costs are included in job cost sheets . b. Individual job cost sheets are used by companies which produce customized furniture c. Job cost sheets normally include the selling price of the job completed . d. Ajob cost sheet does not include selling and administrative costs . e. None of the given answers is FALSE .
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 recordkeepingrequirements 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, a decrease to Manufacturing Overhead will be accompanied by an increase to Cost of Goods Manufactured. Finished Goods Inventory. Work in Process Inventory. Raw Materials Inventory. Work in process inventory is correct but I do not understand why. Why wouldn't we increase cost of goods manufactured? Is it b/c it's not the same as COGS? And we don't know if the products are exactly sold yet, so we put them into WIP (from raw materials)?
Which of the following is not a reason to allocate overhead? Some overhead costs are seasonal and should be spread over production for the entire year. Unlike direct materials and direct labor, the amount of overhead actually incurred may not be known at the time a job is being worked on. Allocation is more accurate than tracing items directly to jobs. Manufacturing overhead is an indirect cost that cannot be physically or economically traced back to a specific item.
Which of the following statements is not always true? Question 3 options: The job - order costing system is used by manufacturing companies. All costs used in job - ordering costing are actual costs. The job - order cost sheet is subsidiary to the work - in - process account. The job - order costing system is simpler to use than process costing because the record keeping requirements are less.