In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:
Credit to MOH account
Credit to Work in Process inventory account
Debit to Cost of Goods Sold
a debit to the Manufacturing Overhead account
In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:
Raw Materials
Work in Process
Manufacturing Overhead
Finished goods
In a job-order costing system, the entry to record depreciation on manufacturing equipment would include:
a debit to the Work in Process inventory account
a debit to the Depreciation Expense account
a credit to the Work in Process inventory account
When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:
Predetermined overhead rate divided by the actual manufacturing overhead incurred on the particular job.
Predetermined overhead rate times the actual manufacturing overhead incurred on the particular job.
Predetermined overhead rate divided by the actual units of allocation base charged to the particular job.
Predetermined overhead rate times the actual units of allocation base charged to the particular job.
Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?
Fast food restaurant
Shipbuilding
Crude oil refining
Candy making
Choice of allocation base should be made based on
The relative size of the base
the base's relation to direct labor
the base's activity
whether the base actually drives the cost being allocated
a credit to the Manufacturing Overhead account.
a credit to the Work in Process inventory account.
a debit to Cost of Goods Sold.
a debit to the Manufacturing Overhead account.
raw materials
work in process
manufacturing overhead
finished goods
Which of the following is not a characteristic of Job-Order costing?
Many different products are produced each year
Products are manufactured to order
costs are traced or allocated to jobs
cost records must be maintained for each distinct product or job
manufacturing costs are assigned to products
MOH is applied to each job using a predetermined rate
Using a predetermined rate makes it possible to __________ total job costs sooner
Estimate
calculate
discard
When is actual overhead for the period known
the beginning of the period
the middle of the period
the end of the period
MOH is under-applied when
Applied OH is less than actual OH
Applied OH is greater than actual OH
MOH is over-applied when
If you under-applied overhead you should ______ COGS, WIP, Finished goods
increase
decrease
If you over-applied overhead you should ______ COGS, WIP, Finished goods
Assume that Tiger Co.'s overhead was $60,000 under-applied. This amount would result in an adjustment that would decrease COGS by $60,000.
