Cost Accounting and Job Order Cost
Priceline case 1. (a) Joe Delong is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Joe. (b) What is an important feature of a cost accounting system?
2. (a) Distinguish between the two types of cost accounting systems. (b) May a company use both types of cost accounting systems? 3. What type of industry is likely to use a job order cost system?
Give some examples.
4. What type of industry is likely to use a process cost system?
Give some examples.
5. Your roommate asks your help in understanding the major steps in the flow of costs in a job order cost system.
Identify the steps for your roommate.
6. There are two inventory control accounts in a job order system.
Identify the control accounts and their subsidiary ledgers. 7. What source documents are used in accumulating direct labor costs?
8. “Entries to Manufacturing Overhead normally are only made daily.” Do you agree? Explain.
9. Tony Andres is confused about the source documents used in assigning materials and labor costs. Identify the documents and give the entry for each document.
10. What is the purpose of a job cost sheet?
11. Indicate the source documents that are used in charging costs to specific jobs.
12. Explain how a “materials requisition slip” is used in a job order cost system.
13. Mel Finney believes actual manufacturing overhead should be charged to jobs. Do you agree? Why or why not? 14. What relationships are involved in computing a predetermined overhead rate?
15. How can the agreement of Work in Process Inventory and job cost sheets be verified?
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16. Tina Birk believes that the cost of goods manufactured schedule in job order cost accounting is the same as shown in Chapter 19. Is Tina correct? Explain.
17. Jeff Gillum is confused about under- and overapplied
2. (a) Distinguish between the two types of cost accounting systems. (b) May a company use both types of cost accounting systems? 3. What type of industry is likely to use a job order cost system?
Give some examples.
4. What type of industry is likely to use a process cost system?
Give some examples.
5. Your roommate asks your help in understanding the major steps in the flow of costs in a job order cost system.
Identify the steps for your roommate.
6. There are two inventory control accounts in a job order system.
Identify the control accounts and their subsidiary ledgers. 7. What source documents are used in accumulating direct labor costs?
8. “Entries to Manufacturing Overhead normally are only made daily.” Do you agree? Explain.
9. Tony Andres is confused about the source documents used in assigning materials and labor costs. Identify the documents and give the entry for each document.
10. What is the purpose of a job cost sheet?
11. Indicate the source documents that are used in charging costs to specific jobs.
12. Explain how a “materials requisition slip” is used in a job order cost system.
13. Mel Finney believes actual manufacturing overhead should be charged to jobs. Do you agree? Why or why not? 14. What relationships are involved in computing a predetermined overhead rate?
15. How can the agreement of Work in Process Inventory and job cost sheets be verified?
The Navigator
PDF Watermark Remover DEMO : Purchase from www.PDFWatermarkRemover.com to remove the watermark
Do It! Review 911
16. Tina Birk believes that the cost of goods manufactured schedule in job order cost accounting is the same as shown in Chapter 19. Is Tina correct? Explain.
17. Jeff Gillum is confused about under- and overapplied