Jose Company uses a job order cost system. At the end of an accounting period, J
ID: 2452202 • Letter: J
Question
Jose Company uses a job order cost system. At the end of an accounting period, Jose has a debit balance in the Factory Overhead account. This would indicate:A. a loss for the period.
B. underapplied overhead.
C. overapplied overhead.
D. a malfunction in the job order cost system.
E. None of these.
An equivalent unit of material is equal to:
A. the amount of material necessary to complete one unit of production.
B. a unit of work in process inventory.
C. the amount of material necessary to start a unit of production into work in process.
D. fifty percent of the material cost of a unit of finished goods.
E. None of these.
Process cost accounting systems:
A. employ job cost sheets.
B. often accumulate work in process amounts by department.
C. do not allow for overhead allocations.
D. All of the above.
E. None of these. Jose Company uses a job order cost system. At the end of an accounting period, Jose has a debit balance in the Factory Overhead account. This would indicate:
A. a loss for the period.
B. underapplied overhead.
C. overapplied overhead.
D. a malfunction in the job order cost system.
E. None of these.
An equivalent unit of material is equal to:
A. the amount of material necessary to complete one unit of production.
B. a unit of work in process inventory.
C. the amount of material necessary to start a unit of production into work in process.
D. fifty percent of the material cost of a unit of finished goods.
E. None of these.
Process cost accounting systems:
A. employ job cost sheets.
B. often accumulate work in process amounts by department.
C. do not allow for overhead allocations.
D. All of the above.
E. None of these.
Explanation / Answer
Answer:
1. Underapplied overhead- Option - B
A debit balance in overhead account means, overhead that could not be applied even after using budgeted overhead rate. it is called as under applied overhead.
2. A unit of work in process inventory - Option - B
Equivalent unit of material calculates the percentage of work done in a process in respect of material.
3. Do not allow for overhead allocation - Option - C
In process costing system equivant unit of production is counted inrespect of material and conversion costs, to find the finished goods and transfer to next process. The overhead allocation method is not applicable here.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.