Session:4 Job Order Costing
Questions
Principles of Accounting, Volume 2: Managerial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-managerial-accounting
2. 4.1Burnham Industries incurs these costs for the month:
What is the prime cost?
3. 4.1Choco’s Chocolates incurs these costs for the month:
What is the conversion cost?
4. 4.1 How do job order costing and process costing differ with respect to recording direct materials and
direct labor?
5. 4.1 Why are product costs assigned to the product and period costs immediately expensed?
6. 4.3 Is the cost of goods manufactured the same as the cost of goods sold?
Chapter 4 Job Order Costing 233
7. 4.3 From beginning to end, place these items in the order of the flow of goods.
A. cost of goods sold
B. raw materials inventory
C. finished goods inventory
D. work in process inventory
8. 4.4 How is the predetermined overhead rate determined?
9. 4.4 How is the predetermined overhead rate applied?
10. 4.5 Why are the overhead costs first accumulated in the manufacturing overhead account instead of in
the work in process inventory account?
11. 4.6 Why is the manufacturing overhead account debited as expenses are recognized and then credited
when overhead is applied?
12. 4.7Match the concept on the left to its correct description.
| A. job order costing | i. computes the overhead applied to each job |
| B. materials requisition sheet | ii. source document indicating the number of hours an employee worked on specific jobs |
| C. overapplied overhead | iii. source document indicating the raw materials assigned to a specific production job |
| D. predetermined overhead rate | iv. the cost accounting system used by pet food manufacturers |
| E. process costing | v. the cost accounting system used by law firms |
| F. time ticket | vi. the result when the actual overhead is less than the amount assigned to each specific job |
| G. underapplied overhead | vii. the result when the actual overhead is more than the amount assigned to each specific job |