Which type of business would be most likely to use a job order costing system Quizlet

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Which type of business would be most likely to use job order costing system?
Which of the following companies would most likely use job costing quizlet?
Which one of the following is likely to use job costing?
What types of companies would be more likely to use job order costing versus process costing?

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16. Which of the following industries would be most likely to use a process costing
system?
A) Ship builder
B) Movie studio
C) Oil refinery
D) Hospital

17. A process cost system is employed in those situations where:
A) many different products, jobs, or batches of production are being produced each period.
B) where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
C) a service is performed such as in a law firm or an accounting firm.
D) full or absorption cost approach is not employed.

18. Emco Company uses direct labor cost as a basis for computing its predetermined
overhead rate. In computing the predetermined overhead rate for last year, the
company misclassified a portion of direct labor cost as indirect labor. The effect of this
misclassification will be to:
A) understate the predetermined overhead rate.
B) overstate the predetermined overhead rate.
C) have no effect on the predetermined overhead rate.
D) cannot be determined from the information given.

19. Which of the following entries would record correctly the application of overhead
cost?
A) Work in Process .................................. XXX
Accounts Payable ...................... XXX
B) Manufacturing Overhead .................... XXX
Accounts Payable ...................... XXX
C) Manufacturing Overhead .................... XXX
Work in Process ......................... XXX
D) Work in Process .................................. XXX
Manufacturing Overhead ........... XXX

20. The operations of Kalispell Company resulted in overapplied overhead for the month
just completed. Which of the following journal entries can be correct if Kalispell
allocates under- or overapplied overhead among accounts?
A) Cost of Goods Sold ................................. XXX
Manufacturing Overhead ............... XXX
B) Manufacturing Overhead ........................ XXX
Cost of Goods Sold ........................ XXX
C) Work in Process ...................................... XXX
Finished Goods ....................................... XXX
Cost of Goods Sold ........................ XXX
Manufacturing Overhead ............... XXX
D) Manufacturing Overhead ........................ XXX
Work in Process ............................. XXX
Finished Goods .............................. XXX
Cost of Goods Sold ........................ XXX

21. Which of the following entries would record correctly the monthly salaries earned by
the top management of a manufacturing company?
A) Manufacturing Overhead ........................... XXX
Salaries and Wages Payable ............. XXX
B) Salaries Expense ........................................ XXX
Salaries and Wages Payable ............. XXX
C) Work in Process ......................................... XXX
Salaries and Wages Payable ............. XXX
D) Salaries and Wages Payable ....................... XXX
Salaries Expense ............................... XXX

22. The journal entry to record applying overhead during the production process is:
A) Manufacturing Overhead .................................... XXX
Work In Process ......................................... XXX
B) Finished Goods ................................................... XXX
Manufacturing Overhead ........................... XXX
C) Manufacturing Overhead .................................... XXX
Finished Goods .......................................... XXX
D) Work In Process .................................................. XXX
Manufacturing Overhead ........................... XXX

23. When manufacturing overhead is applied to production, it is added to:
A) the Cost of Goods Sold account.
B) the Raw Materials account.
C) the Work in Process account.
D) the Finished Goods inventory account.

24. Which of the following statements is true?
I. Overhead application may be made slowly as a job is worked on.
II. Overhead application may be made in a single application at the time of
completion of the job.
III. Overhead application should be made to any job not completed at year-end in
order to properly value the work in process inventory.
A) Only statement I is true.
B) Only statement II is true.
C) Both statements I and II are true.
D) Statements I, II, and III are all true

25. On the Schedule of Cost of Goods Manufactured, the final Cost of Goods
Manufactured figure represents:
A) the amount of cost charged to Work in Process during the period.
B) the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period.
C) the amount of cost placed into production during the period.
D) the amount of cost of goods completed during the current year whether they were started before or during the current year.

26. Under a job-order costing system, the dollar amount transferred from Work in Process
to Finished Goods is the sum of the costs charged to all jobs:
A) started in process during the period.
B) in process during the period.
C) completed and sold during the period.
D) completed during the period.

27. If a company applies overhead to production on the basis of a predetermined rate, a
debit balance in the Manufacturing Overhead account at the end of the period means
that:
A) actual overhead cost was greater than the amount charged to production.
B) actual overhead cost was less than the amount of direct labor cost.
C) more overhead cost has been charged to production than has been charged to
finished goods during the period.
D) actual overhead cost was less than the amount charged to production.

28. Overapplied overhead means that:
A) the applied overhead cost was less than the actual overhead cost.
B) the applied overhead cost was greater than the actual overhead cost.
C) the estimated overhead cost was less than the actual overhead cost.
D) the estimated overhead cost was less than the applied overhead cost

29. A job order cost system uses a predetermined overhead rate based on estimated
activity and estimated manufacturing overhead cost. At the end of the year,
underapplied overhead might be explained by which of the following situations?
Actual activity Actual manufacturing overhead costs
A) Greater than estimated Greater than estimated
B) Greater than estimated Less than estimated
C) Less than estimated Greater than estimated
D) Less than estimated Less than estimated

30. Departmental overhead rates are generally preferred to plant-wide overhead rates
when:
A) the activities of the various departments in the plant are not homogeneous.
B) the activities of the various departments in the plant are homogeneous.
C) most of the overhead costs are fixed.
D) all departments in the plant are heavily automated

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Which type of business would be most likely to use job order costing system?

Companies in the white-collar sector of business, including law firms, accounting businesses, and private investment companies, can utilize job order costing to manage individual client accounts. For example, accounting firms can consider each individual client a job.

Which of the following companies would most likely use job costing quizlet?

Which of the following companies would most likely use job costing? Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate.

Which one of the following is likely to use job costing?

Generally, the application of job costing method is followed in industries such as printing press, automobile garage, repair workshops, shipbuilding, foundry, and other similar manufacturing units, which manufactures according to customer's specific requirements.

What types of companies would be more likely to use job order costing versus process costing?

Industries that produce unique or custom orders for individual customers, including retail companies and hospitals, typically use job order costing. Industries that produce large amounts of a single product or similar products, such as manufacturers of a single product, typically use process costing.