Job Order Cost Accounting Sample Answers

Job Order Cost Accounting Sample Answers

Answers for exercises

EXERCISES 19-1, 19-2, 19-8, 19-9, 19-10

Exercise 19-1  Job order production  C1

Match each of the terms/phrases numbered 1 through 5 with the best definition a through e.

1. _____ 1.

Cost accounting system

1. _____ 2.

Target cost

1. _____ 3.

Job

1. _____ 4.

Process operation

1. _____ 5.

Job order production

1. Production of products in response to customer orders.
2. Production activities for aspecial order.
3. A system that records manufacturing costs.
4. The expected selling price of a job minus its desired profit.
5. Mass production in a continuous flow of steps.

Exercise 19-2  Job cost computation  C2

The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The requisitions are identified by code numbers starting with the letter Q, and the time tickets start with W. At the start of the year, management estimated that overhead cost would equal 110% of direct labor cost for each job. Determine the total cost on the job cost sheet for Job 9-1005.

Exercise 19-8  Journal entries for materials  P1

Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May.

1. Raw materials purchases for cash.
2. Direct materials usage.
3. Indirect materials usage.

Exercise 19-9  Journal entries for labor  P2

Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May.

1. Direct labor usage.
2. Indirect labor usage.
3. Total payroll paid in cash.

Exercise 19-10  Journal entries for overhead  P3

Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May.

1. Incurred other overhead costs (record credit to Other Accounts).
2. Applied overhead to work in process

Exercise 19-7  Cost flows in a job order costing system  P1  P2  P3  P4

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system

Compute the following amounts for the month of May.

• Cost of direct materials used.
• Cost of direct labor used.
• Cost of goods manufactured.
• Cost of goods sold. (Do not consider any underapplied or overapplied overhead.)
• Gross profit.

Overapplied or underapplied overhead.
Check (3) $625,400