Q: A company completed Job 101 with the following costs: Direct Materials $$12,000, Direct Labor 8$$,000, and Manufacturing Overhead allocated at 150% of direct labor cost. What is the total cost of Job 101?

$$12,000 + 8$$,000 + (1.5 \times $$8,000) = 32$$,000$

Q: A law firm uses job costing to bill clients. If direct professional labor is $5,000 and indirect costs are allocated at 60% of direct labor, what is the total job cost before profit markup?

$$5,000 + (0.6 \times 5$$,000) = $$8,000$$

Question 1

Which of the following best distinguishes job costing from process costing?

Accepted Answer

Job costing assigns costs to each unique product or batch, while process costing averages costs over identical units.

Question 2

A company estimates its total manufacturing overhead for the year to be $500,000 and expects to use 25,000 direct labor hours. What is the predetermined manufacturing overhead rate?

Accepted Answer

$$ \frac{\500$$,000}{25,000} = \$$20 $$ per direct labor hour

Question 3

Which document lists all raw materials needed to manufacture a specific job?

Accepted Answer

Bill of materials

Question 4

A company completed Job 101 with the following costs: Direct Materials $$12,000, Direct Labor 8$$,000, and Manufacturing Overhead allocated at 150% of direct labor cost. What is the total cost of Job 101?

Accepted Answer

$$12,000 + 8$$,000 + (1.5 	imes $$8,000) = 32$$,000$

Question 5

If actual manufacturing overhead is $$100,000 and allocated manufacturing overhead is 90$$,000, what is the result and how should it be corrected?

Accepted Answer

Underallocated by $$10,000; increase Cost of Goods Sold by 10$$,000

Question 6

Which of the following is NOT a typical example of manufacturing overhead?

Accepted Answer

Direct labor wages

Question 7

A law firm uses job costing to bill clients. If direct professional labor is $5,000 and indirect costs are allocated at 60% of direct labor, what is the total job cost before profit markup?

Accepted Answer

$$5,000 + (0.6 	imes 5$$,000) = $$8,000$$

Question 8

Which of the following best describes the role of a job cost record?

Accepted Answer

It provides supporting detail for both Work in Process and Finished Goods Inventory accounts.

Question 9

Which of the following is a benefit of using Robotic Process Automation (RPA) in job costing?

Accepted Answer

RPA ensures no errors when records are entered into the system.

Question 10

A company’s predetermined overhead rate is $12 per direct labor hour. Job 202 used 150 direct labor hours. How much overhead is allocated to Job 202?

Accepted Answer

$$12 	imes 150 = 1$$,800$

Question 11

Which of the following is a key criterion for identifying a process as a good candidate for RPA?

Accepted Answer

The process is rule-based and repetitive.

Question 12

Which journal entry correctly records the use of $30,000 of direct labor in production?

Accepted Answer

Work in Process Inventory $$30,000; Wages Payable 30$$,000

Question 13

Which of the following is true regarding non-manufacturing costs in job costing?

Accepted Answer

They are assigned to products for internal decision making only.

Question 14

A company’s actual manufacturing overhead for the period is $$120,000, but only 110$$,000 was allocated. What journal entry is needed to close the overhead account?

Accepted Answer

Debit Cost of Goods Sold $$10,000; Credit Manufacturing Overhead 10$$,000

Question 15

Which of the following best describes the use of Excel pivot tables in job costing analysis?

Accepted Answer

They summarize and cross-tabulate job cost data for analysis.

Question 16

A company’s job cost record for Job 501 shows: Direct Materials $$20,000, Direct Labor 15$$,000, and Manufacturing Overhead $12,000. If 100 units were produced, what is the cost per unit?

Accepted Answer

$$ \frac{20,000 + 15,000 + 12,000}{100} = 470$$ $

Question 17

Which of the following is a primary use of job cost records for management?

Accepted Answer

To assess and compare the profitability of each model

Question 18

Which of the following is the correct formula for allocating manufacturing overhead to a job?

Accepted Answer

$$ 	ext{Predetermined MOH Rate} 	imes 	ext{Actual Amount of Allocation Base Used by the Job} $$

Question 19

Which of the following is a sustainability-related use of job cost records?

Accepted Answer

To determine the environmental impact of a product’s production and disposal

Job Costing in Managerial Accounting: Structured Study Notes

Guida di studio - Domande di pratica

Study guide - Flashcard