True or False: Job shops have three types of inventory accounts: Direct Materials, Work-in-Process, and Finished...
True or False: Job shops have three types of inventory accounts: Direct Materials, Work-in-Process, and Finished Goods.
True or False: Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.
Homework Answers
When costs incurred are recorded on the basis of jobs performed, then the method of costing is known as job costing. Inventory under job costing can be seen for direct materials, work-in-process, and finished goods.
True
Under normal costing the manufacturing overhead cost is not calculated considering budgeted data. Actual data will be used for calculating overheads.
True
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True or False: Job shops have three types of inventory accounts:
Direct Materials, Work-in-Process, and Finished...
True or False 6. An architect is a business which is likely to use job costing....
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
Direct Materials $31,500 Work in Process $152.000 Finished Goods $260,000 During September, the following events occurred:...
Direct Materials $31,500 Work in Process $152.000 Finished Goods $260,000 During September, the following events occurred: 1. Swifty purchased direct materials costing $3,708,000 on account. 2. Swifty used $432,000 in direct materials in production. 3. Swifty's employees clocked 22,000 direct labor hours at an average wage rate of $13.23 per direct labor hour. 4. The company incurred $182,000 in manufacturing overhead, including $18,000 in indirect labor costs. 5. Using direct labor hours as the application base, the company applied $166,000...
$ Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead 8,700 76,500 53,000...
$ Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead 8,700 76,500 53,000 During the month of January, all of the following occurred. 1. Direct labor costs were $49,000 for 1,800 hours worked. 2. Direct materials costing $28,000 and indirect materials costing $3,900 were purchased 3. Sales commissions of $16,000 were earned by the sales force. 4. $20,000 worth of direct materials were used in production. 5. Advertising costs of $6,300 were incurred. 6. Factory supervisors earned...
The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished...
The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 21,500 32,900 5,800 December 31 (Ending) $ 25,200 28,800 7,000 Direct materials used during the year amount to $46,200 and the cost of goods sold for the year was $53,200. Required: Prepare a cost of goods sold statement. 32,900 TAPPAN PARTS Cost of Goods Sold Statement For the Year Ended December 31 Beginning work-in-process inventory Manufacturing costs: Direct...
1. The perpetual inventory method cannot be used in a job order cost system. True False...
1.
The perpetual inventory method cannot be used in a job order
cost system.
True
False
2. A job order cost system and a process cost system are two
alternative methods for valuing inventories.
True
False
3. Accumulating and assigning manufacturing costs are two
important activities in a job order cost system.
True
False
4. When raw materials are purchased, the Work in Process
Inventory account is debited.
True
False
5. Job order cost sheets constitute the subsidiary ledger of...
The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished...
The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 21,600 32,200 5,000 December 31 (Ending) $ 24,600 28,800 7,500 Direct materials used during the year amount to $46,500 and the cost of goods sold for the year was $52,600. Required: Prepare a cost of goods sold statement. TAPPAN PARTS Cost of Goods Sold Statement For the Year Ended December 31 Manufacturing costs: Direct materials: Materials available Direct...
true or false 14. In a process costing system. partially completed units in Work-in-Process Inventory are...
true or false
14. In a process costing system. partially completed units in Work-in-Process Inventory are typically converted to equivalent completed units. 15. Before purchasing an Enterprise Resource Planning (ERP) system, companies must confirm that the benefits of an ERP system will outweigh the costs of implementation 16. Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs. 17. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation...
True or false erlap 1. A movie production company would likely use a job costing system...
True or false
erlap 1. A movie production company would likely use a job costing system to track revenues and costs. 2. A process costing system is used by companies that make identical units of product in batches. 3. The journal entry for recording timesheet submissions by employees working on various jobs will include a debit to the Direct Labor account. 4. When a manufacturing company purchases raw materials, the Raw Materials Inventory account is debited. 5. When direct materials...
Manufacturing companies typically have one or more of the following three types of inventory: direct materials,...
Manufacturing companies typically have one or more of the following three types of inventory: direct materials, work-in-process, and finished goods. The companies purchase materials and components and convert them into various finished goods. To be able to solve for the amounts required in this problem you need to understand the flow of inventory. Direct materials, direct labor and manufacturing overhead flow into work-in-process inventory as the units are being produced. When the units are completed the cost of the goods...
Eagle Inc. uses a job-order costing system. The company’s inventory balances on April 1, the start of its fiscal year, were as follows: Raw Materials Inventory $469,325 Work in Process Inventory...
Eagle Inc. uses a job-order costing system. The company’s inventory balances on April 1, the start of its fiscal year, were as follows: Raw Materials Inventory $469,325 Work in Process Inventory $255,100 Finished Goods Inventory $181,256 During the year, the following transactions were completed: Raw materials were purchased on account, $267,345. Raw materials were issued from the storeroom for use in production, $238,000 (40% indirect and 60% direct). Employee salaries and wages were accrued as follows: direct labor, $229,600; indirect...
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
Direct Materials $31,500 Work in Process $152.000 Finished Goods $260,000 During September, the following events occurred: 1. Swifty purchased direct materials costing $3,708,000 on account. 2. Swifty used $432,000 in direct materials in production. 3. Swifty's employees clocked 22,000 direct labor hours at an average wage rate of $13.23 per direct labor hour. 4. The company incurred $182,000 in manufacturing overhead, including $18,000 in indirect labor costs. 5. Using direct labor hours as the application base, the company applied $166,000...
$ Direct Materials Inventory Work in Process Inventory Finished Goods Inventory Manufacturing Overhead 8,700 76,500 53,000 During the month of January, all of the following occurred. 1. Direct labor costs were $49,000 for 1,800 hours worked. 2. Direct materials costing $28,000 and indirect materials costing $3,900 were purchased 3. Sales commissions of $16,000 were earned by the sales force. 4. $20,000 worth of direct materials were used in production. 5. Advertising costs of $6,300 were incurred. 6. Factory supervisors earned...
The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 21,500 32,900 5,800 December 31 (Ending) $ 25,200 28,800 7,000 Direct materials used during the year amount to $46,200 and the cost of goods sold for the year was $53,200. Required: Prepare a cost of goods sold statement. 32,900 TAPPAN PARTS Cost of Goods Sold Statement For the Year Ended December 31 Beginning work-in-process inventory Manufacturing costs: Direct...
1.
The perpetual inventory method cannot be used in a job order
cost system.
True
False
2. A job order cost system and a process cost system are two
alternative methods for valuing inventories.
True
False
3. Accumulating and assigning manufacturing costs are two
important activities in a job order cost system.
True
False
4. When raw materials are purchased, the Work in Process
Inventory account is debited.
True
False
5. Job order cost sheets constitute the subsidiary ledger of...
The following balances are from the accounts of Tappan Parts: Direct materials inventory Work-in-process inventory Finished goods inventory January 1 (Beginning) $ 21,600 32,200 5,000 December 31 (Ending) $ 24,600 28,800 7,500 Direct materials used during the year amount to $46,500 and the cost of goods sold for the year was $52,600. Required: Prepare a cost of goods sold statement. TAPPAN PARTS Cost of Goods Sold Statement For the Year Ended December 31 Manufacturing costs: Direct materials: Materials available Direct...
true or false
14. In a process costing system. partially completed units in Work-in-Process Inventory are typically converted to equivalent completed units. 15. Before purchasing an Enterprise Resource Planning (ERP) system, companies must confirm that the benefits of an ERP system will outweigh the costs of implementation 16. Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs. 17. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation...
True or false
erlap 1. A movie production company would likely use a job costing system to track revenues and costs. 2. A process costing system is used by companies that make identical units of product in batches. 3. The journal entry for recording timesheet submissions by employees working on various jobs will include a debit to the Direct Labor account. 4. When a manufacturing company purchases raw materials, the Raw Materials Inventory account is debited. 5. When direct materials...
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