Session:4 Job Order Costing

Thought Provokers

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

TP 1

LO 4.1Can a company use both job order costing and process costing? Why or why not?

TP 2

LO 4.4If a job order cost system tracks the direct materials and direct labor, why doesn’t it track the actual overhead used for a specific job?

TP 3

LO 4.5What are the similarities in calculating the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold?

TP 4

LO 4.6If a company bases its predetermined overhead rate on 100,000 machine hours, and it actually has 100,000 machine hours, would there be an underapplied or overapplied overhead?

TP 5

LO 4.7How do the job cost sheets act as a subsidiary ledger for the work in process inventory if journal entries are not made to the job cost sheets?

TP 6

LO 4.8How is a job order cost system used in a service industry?

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