COST ACCOUNTING
JOB ORDER COSTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Raw materials, work in process, finished goods
|
|
|
Work in process, raw materials, finished goods
|
|
|
Raw materials, direct labor, manufacturing overhead
|
|
|
Raw materials, manufacturing overhead, direct labor
|
Detailed explanation-1: -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.
Detailed explanation-2: -The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead.
Detailed explanation-3: -The manufacturing overhead rate is a rate that allocates overhead costs to the production of a good or service based on an allocation formula. Commonly, the overhead rate may be derived by applying overhead costs on the basis of labor hours or machine hours.
Detailed explanation-4: -In a job-order cost system, depreciation on factory equipment should be charged directly to the Work in Process account. 12. The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account.