Chapter 17: Q17-2RQ (page 930)
Question: What types of companies use job order costing systems?
Answer:
Accounting firms, building contractors, furniture manufacturer, etc., use job order costing system.
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Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
b. A manufacturer of specialtywakeboards
Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
e. A computer repair service that makes service calls to homes.
Question: How is manufacturing overhead allocated to jobs?
Question: The following information pertains to Smith Company, which you worked with previously in this chapter:
11. Smith Company completed jobs that cost \(25,000 to manufacture. Record the journal entry.
12. Smith Company sold jobs to customers on account for \)52,000 that cost $22,000 to manufacture. Record the journal entries.
The T-account showing the manufacturing overhead activity for Aliyah Corp. for 2018 is as follows:
Manufacturing overhead
| 195000 | 203,000 |
Requirements
3. Is manufacturing overhead underallocated or overallocated? By how much?
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