Title: Question 1
QA_Ori: Factory overhead is not identified with specific units (jobs) or batches (job lots).
Therefore, to assign costs, estimates of the relation between factory overhead cost and job
Title: Question 2
Title: Question 3
QA_Ori: The job order cost sheet captures information on cost and quantity of direct material
Title: Question 4
QA_Ori:
Each job is assigned a subsidiary ledger account. This account serves as the “posting
When a job is finished, its job cost sheet is completed and moved from the file of jobs in process
Title: Question 5
QA_Ori: A debit (increase) to Goods in Process Inventory for direct materials, a debit
Title: Question 6
QA_Ori: The materials requisition slip is designed to track the movement of materials from
Title: Question 7
QA_Ori: The clock card is used to record the number of hours each employee works and is
Title: Question 8
QA_Ori: Debits (increases) to factory overhead are the recording of actual overhead costs,
Title: Question 9
QA_Ori: Assuming that the overapplied or underapplied overhead is immaterial, it is closed
to the Cost of Goods Sold account. However, if the amount is material—meaning it would
Title: Question 10
QA_Ori: This production run should be accounted for as a job lot (batch). Although
Title: Question 11
QA_Ori: A predetermined factory overhead rate must be calculated for at least two reasons:
(1) Not all costs are known in advance, yet the costs must be applied to products during the
current period. (2) A predetermined rate is used to spread indirect costs to products and/or
Title: Question 12
QA_Ori: Each patient in a hospital can be viewed as a “job.” In this case, a job order cost
Title: Question 13
QA_Ori: Each of the 30 luxury motorcycles will likely be accounted for as an individual job.
Title: Question 14
QA_Ori: Sprint employees can use job cost sheets to accumulate the costs (e.g. labor and
Title: Quick Study 19-1
QA_Ori:
Title: Quick Study 19-2
QA_Ori: Direct materials, direct labor, and factory overhead are the three types of
Title: Quick Study 19-3
QA_Ori:
Finished Goods Inventory…………………………………………10,500
Cost of Goods Sold………………………………………………….10,500
Cash……………………………………………………………………… 14,900
QA_Edit:
Title: Quick Study 19-4
QA_Ori:
Raw Materials Inventory……………………………………………50,000
Factory Overhead…………………………………………………….12,000
Goods in Process Inventory………………………………………32,000
Title: Quick Study 19-5
QA_Ori:
Factory Payroll………………………………………………………..180,000
Goods in Process Inventory………………………………………140,000
Title: Quick Study 19-6
QA_Ori:
Goods in Process Inventory (Job lot)………………………….117,900
QA_Edit:
Title: Quick Study 19-7
QA_Ori:
QA_Edit:
Title: Quick Study 19-8
QA_Ori:
Factory Overhead…………………………………………………….22,000
*Computation of over- or underapplied overhead
Title: Quick Study 19-9
QA_Ori:
Cost of Goods Sold………………………………………………….50,000
*Computation of over- or underapplied overhead
Title: Quick Study 19-10
QA_Ori:
QA_Edit:
Title: Quick Study 19-11
QA_Ori:
JOB COST SHEET
Title: Quick Study 19-12
QA_Ori: Since each car is custom-ordered, Porsche produces in jobs rather in
job lots (production of more than one unit of a custom product).
Title: Exercise 19-1
QA_Ori:
QA_Edit:
Title: Exercise 19-2
QA_Ori:
JOB COST SHEET: Job 9-1005
Direct materials cost
Q-4698……………………………………..$1,250
Q-4725…………………………………….. 1,000 $2,250
Title: Exercise 19-3
QA_Ori:
QA_Edit:
Title: Exercise 19-4
QA_Ori:
1.The cost of direct materials requisitioned in the month equals the total direct
2.Direct labor cost incurred in the month equals the total direct labor costs
accumulated on the three jobs less the amount of direct labor cost assigned to
Job 102 in May:
Job 102 ………………………………………………………..$8,000
3.The predetermined overhead rate equals the ratio of the amount of overhead
Job 102 Job 104
Overhead………………………………………………………$ 4,000 $10,500
4.The cost transferred to finished goods in June equals the total costs of the two
completed jobs for the month, which are Jobs 102 and 103:
Job 102 Job 103 Total
Direct materials……………………………. $15,000 $33,000 $48,000
Title: Exercise 19-5
QA_Ori:
1.
2.
Total cost of job in process (given)……………………………………………………$ 50,000
QA_Edit:
Title: Exercise 19-7
QA_Ori:
1. Cost of direct materials used
Beginning raw materials inventory……………………………………………….$ 43,000
2. Cost of direct labor used
3. Cost of goods manufactured
Beginning goods in process inventory………………………………………….$ 10,200
4. Cost of goods sold
Beginning finished goods inventory………………………………………………$ 63,000
5. Gross profit
6. Actual overhead incurred
Indirect materials……………………………………………………………………….$ 15,000