I. The basic parts of a joborder costing system are the:
A. Cost______________ and _________________ procedures.
B. ____________________ documents.
C. Accountsthat a company uses when it incurs costs for direct ____________,direct ________________, and ___________________.
II. Accounting for materialsrequires three types of entries.
A. With the ______________ of materials,debit Materials Inventory and credit Accounts Payable.
B. With the _______________ of directmaterials to ________________, debit Work in Process Inventory andcredit Materials Inventory.
C. With the transfer of__________________ materials to production, debit Overhead andcredit Materials Inventory.
III. Accounting for labor requirestwo types of entries.
A. For payroll costs incurred for_____________ labor, debit Work in Process Inventory and creditPayroll Payable.
B. For payroll costs incurred for_______________ labor, debit Overhead and credit PayrollPayable.
IV. Accounting for other overhead requires twotypes of entries.
A. Other overhead includes plant____________, property _____________, insurance, and_______________.
B. To record _____________ overhead costs,debit Overhead and credit Cash or Accumulated Depreciation.
C. To record _____________ overheadcosts, debit Work in Process Inventory and credit Overhead.
D. The actual (debits) and estimated(credits) overhead costs are ________________ at the end of theperiod to determine the accuracy of overhead costrecognition.
V. To recordthe transfer of ________________ units, debit Finished GoodsInventory and credit Work in Process Inventory.
VI. When a companyuses a perpetual inventory system, two accounting entries are madewhen products are sold.
A. To record the sold productâs________________, debit Accounts Receivable (or Cash) and creditSales.
B. To record the sold productâsassociated ____________, debit Cost of Goods Sold and creditFinished Goods Inventory.
VII. Each job in production has a job order_________________.
A. Hasspace for direct materials, direct labor, and overhead costs.
B. Includesthe job order number, product specifications, customer name, dateof order, projected completion date, and a cost summary.
C. Forincomplete jobs, they make up the _______________ ledger for theWork in Process Inventory account.
D. When ajob is completed, the costs are totaled on the_____________________.
1. Unit cost is computed to_____________ items in inventory.
2. Product ___________Cost = Total Costs for Job ÷ Number of Good Units Produced
VIII. Job order costing systems are also used in______________ organizations.
A. Job ordercost cards track ________________ contracts.
IX. Overhead costs are allocated in foursteps.
A. Step 1: _____________ the overheadrate.
1. A ________________ overheadrate is calculated as estimated overhead costs divided by estimatedcost driver activity.
B. Step 2:______________ the overhead rate.
1. Costs are assigned by multiplyingthe actual cost _____________ activity by the predeterminedoverhead rate.
C. Step 3:Record ________________ overhead costs
D. Step 4:_________________ applied and actual overhead amounts
1. Ifover- or underapplied amounts are minimal, credit or debit_________________.
2. Ifover- or underapplied amounts are material, adjustments should bemade to the inventory accounts affected.
X. The__________________ approach to applying overhead costs is to use asingle plantwide rate.
XI. The moreaccurate _____________________ approach to applying overhead costscreates many smaller activity pools and establishes separate ratesfor each pool.
