I. The basic parts of a job order costing system are the: A. Cost ______________
ID: 2419265 • Letter: I
Question
I. The basic parts of a job order costing system are the:
A. Cost ______________ and _________________ procedures.
B. ____________________ documents.
C. Accounts that a company uses when it incurs costs for direct ____________, direct ________________, and ___________________.
II. Accounting for materials requires three types of entries.
A. With the ______________ of materials, debit Materials Inventory and credit Accounts Payable.
B. With the _______________ of direct materials to ________________, debit Work in Process Inventory and credit Materials Inventory.
C. With the transfer of __________________ materials to production, debit Overhead and credit Materials Inventory.
III. Accounting for labor requires two types of entries.
A. For payroll costs incurred for _____________ labor, debit Work in Process Inventory and credit Payroll Payable.
B. For payroll costs incurred for _______________ labor, debit Overhead and credit Payroll Payable.
IV. Accounting for other overhead requires two types of entries.
A. Other overhead includes plant ____________, property _____________, insurance, and _______________.
B. To record _____________ overhead costs, debit Overhead and credit Cash or Accumulated Depreciation.
C. To record _____________ overhead costs, debit Work in Process Inventory and credit Overhead.
D. The actual (debits) and estimated (credits) overhead costs are ________________ at the end of the period to determine the accuracy of overhead cost recognition.
V. To record the transfer of ________________ units, debit Finished Goods Inventory and credit Work in Process Inventory.
VI. When a company uses a perpetual inventory system, two accounting entries are made when products are sold.
A. To record the sold product’s ________________, debit Accounts Receivable (or Cash) and credit Sales.
B. To record the sold product’s associated ____________, debit Cost of Goods Sold and credit Finished Goods Inventory.
VII. Each job in production has a job order _________________.
A. Has space for direct materials, direct labor, and overhead costs.
B. Includes the job order number, product specifications, customer name, date of order, projected completion date, and a cost summary.
C. For incomplete jobs, they make up the _______________ ledger for the Work in Process Inventory account.
D. When a job is completed, the costs are totaled on the _____________________.
1. Unit cost is computed to _____________ items in inventory.
2. Product ___________ Cost = Total Costs for Job ÷ Number of Good Units Produced
VIII. Job order costing systems are also used in ______________ organizations.
A. Job order cost cards track ________________ contracts.
IX. Overhead costs are allocated in four steps.
A. Step 1: _____________ the overhead rate.
1. A ________________ overhead rate is calculated as estimated overhead costs divided by estimated cost driver activity.
B. Step 2: ______________ the overhead rate.
1. Costs are assigned by multiplying the actual cost _____________ activity by the predetermined overhead rate.
C. Step 3: Record ________________ overhead costs
D. Step 4: _________________ applied and actual overhead amounts
1. If over- or underapplied amounts are minimal, credit or debit _________________.
2. If over- or underapplied amounts are material, adjustments should be made to the inventory accounts affected.
X. The __________________ approach to applying overhead costs is to use a single plantwide rate.
XI. The more accurate _____________________ approach to applying overhead costs creates many smaller activity pools and establishes separate rates for each pool.
Explanation / Answer
The basic parts of a job order costing system are the: Cost Measurment and Recognitionprocedures. Electronic Documents Accounts that a company uses when it incurs costs for direct Material, direct Labor , and Overhead II. Accounting for materials requires three types of entries. With the Purchase of materials, debit Materials Inventory and credit Accounts Payable. With the Tranfer of direct materials to production, debit Work in Process Inventory and credit Materials Inventory. With the transfer of Indirect materials to production, debit Overhead and credit Materials Inventory. III. Accounting for labor requires two types of entries. For payroll costs incurred for Production labor, debit Work in Process Inventory and credit Payroll Payable. For payroll costs incurred for Indirect labor, debit Overhead and credit Payroll Payable.