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Exam 20: Costing Systems: Job Order Costing

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Question 31

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A company that manufactures potato chips would probably use a process costing system.

A) True
B) False

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Question 32

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Which of the following entities probably would use a process costing system?

A) An oil refinery
B) A yacht builder
C) A custom furniture company
D) A custom screw manufacturer

E) All of the above
F) B) and C)

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Question 33

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After a job is completed, the product unit cost can be determined from the job order cost card.

The following information is available at the end of the period for the completed Job 713: What is the unit cost for Job 713?

A company should use process costing rather than job order costing if

Product costs appear on the income statement in the form of

Bear Country produces hand-carved wooden bears and uses a job order costing system. The following are data on the three jobs worked on in the company's first month of operations: Overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $10 per hour. The Smokey and Rocky bears were completed during the month, and the Curious bears remained in work in process at the end of the month. a. Compute the cost transferred to finished goods during the month. b. Compute the unit cost for a Rocky bear.

The following partially completed T accounts summarize the transactions of Carlton Company for last year: The indirect labor cost is

The following partially completed T accounts summarize the transactions of Carlton Company for last year: The cost of direct materials used in production is

Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs

Explain the similarities and differences between job order costing and process costing. Focus on the characteristics of each type of system.

In a job order costing system, product costs are traced to work cells.

The type of product costing system used by a company is dictated by the

Which of the following is not a characteristic of a job order costing system?

In a job order costing system, indirect labor costs incurred are charged to the Work in Process Inventory account.

When Dimock Construction's Designer House #10 is completed, Dimock's

In a process costing system, each product is assigned the same amount of costs.

To prepare financial statements at the end of the accounting period, the actual overhead cost for the period and the estimated overhead that was applied during the period must be reconciled in a job order costing system.

Which of the following characteristics applies to process costing, but does not apply to job order costing?

In a job order costing system, a separate job order cost card is used for each individual job.