Question

Which one is incorrect regarding cost flows through a job-order costing system. a. Costs are averaged...

Which one is incorrect regarding cost flows through a job-order costing system.

a. Costs are averaged for all jobs produced within a department

b. product costs are accumulated separately by job.

c. the job-order costing system is patterned after the physical flow of products as they move through the production process.

d. the three inventory accounts used are maintained on a perpetual basis

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Your required answer is option D i.e. The three inventory accounts used are maintained on a perpetual basis

Explanation:

In case of job-order costing sometime costs are averaged for common department if there is no any cost centre available and secondly product costs are accumulated seperately to find the job costing and thirdly the job-order costing system is patterned after the physical flow of products as they move through the production process but there is not anything like three inventory however job costing is maintened on a perpetual basis but there is nothing like three inventory.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.A process cost system and a job order cost system both use a predetermined overhead rate...
1.A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process. true or false 2. Under job-order costing, the actual direct material, actual direct labor, and estimated overhead costs are recorded on the job cost sheet. true or false 3. In a job-order cost system, the inventory accounts generally are maintained on a perpetual basis. true or false 4. Process costing is used for products...
Chase Inc. uses a job order costing system. The estimated manufacturing overhead for the year is...
Chase Inc. uses a job order costing system. The estimated manufacturing overhead for the year is $3,500,000. The company has decided to allocate the manufacturing overhead to products on the basis of direct labour cost. The estimated direct labour costs for the year are $2,000,000.    What is the pre-determine fixed overhead rate that will be used to apply fixed manufacturing overhead to products? Job # 123 has accumulated $10,000 of direct materials and $20,000 of direct labour costs. The rate...
Which one of the following statements is false? In a job order costing system, individual jobs...
Which one of the following statements is false? In a job order costing system, individual jobs use different quantities of production resources. In a process-costing system, each unit uses approximately the same amount of resources. An organization that manufactures several types of cereal would use a job order costing system. A corporation whose sole business activity is processing the customer deposits of several banks would use a process-costing system.
ob Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...
ob Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $117,500 Number of moves 5,000 Engineering 128,000 Number of change orders 8,000 Other overhead 265,200 Direct labor hours 52,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job...
Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...
Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost    Driver Amount of Driver Materials handling $ 72,000      Number of moves 3,000   Engineering 165,000      Number of change orders 10,000   Other overhead 280,000      Direct labor hours 50,000   Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44...
Under a job order costing system, the dollar amount of the entry involved in the transfer...
Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work-in-process inventory to finished goods inventory is the total of the costs charged to all jobs A) started during the period B) completed during the period C) completed and sold during the period D) started and completed during the period Which of the following would not be an appropriate allocation base for assigning utility costs for heating three separate product line...
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis...
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $110,500 of manufacturing overhead for an estimated allocation base of $85,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:         Purchase of raw materials $...
Waldbauer Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed...
Waldbauer Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. In October the company completed job N66B that consisted of 10,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job N66B shows the following costs: Beginning balance $ 41,000 Direct materials $251,000 Direct labor cost $ 98,000 Manufacturing...
There are four firms choosing a costing system. Firm #1 produces one product, a customized executive...
There are four firms choosing a costing system. Firm #1 produces one product, a customized executive desk. Firm #2 produces two products, custom tennis shoe laces and custom hiking shoe laces. These products must be produced in different departments for administrative reasons, but they are manufactured in almost exactly the same way, in similarly sized bundles, and with the same types of overhead costs. Firm #3 produces two products, custom accounting software and custom billing software. These two products incur...
Madtack Company uses a job-order costing system and started the month of March with only one...
Madtack Company uses a job-order costing system and started the month of March with only one job in process (Job #359). This job had $5,000 of total cost assigned to it at the beginning of March. Madtack applies overhead to jobs at a rate of 175% of direct labor cost. During March, Madtack assigned production costs as follows to the jobs worked on during the month: Job #359 Job #360 Job #361 direct materials .......... $1,000 $5,000 $3,000 direct labor...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT