Chapter+5+Discussion+Questions+-+SV

Chapter+5+Discussion+Questions+-+SV - Process Inventory...

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Chapter 5 – Job Order Costing - Discussion Questions 1. Describe the key differences between job order costing and process costing. 2. Identify each of these types of businesses as either job-order or process costing.  Paint Manufacturing Furniture Making Hospital Services Custom Home Builder Paper Manufacturing Architectural Services Costume Making 3. What would be an example of DM, DL, and OH in the custom made furniture  business?   4. If we increase advertising expense by $25,000, how will it affect OH?   5. How does normal costing differ from actual costing? 6. What is the purpose of a job order cost sheet?  What information should it  contain? 7. Your roommate asks your help in understanding the major steps in the flow of  costs in a job order system.  Identify the steps for your roommate. 8. The unfinished job order cost sheets serves as the subsidiary ledger to Work-In-
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Unformatted text preview: Process Inventory account. Explain what this means and how would you verify this. 9. Suppose you and friend decide to set up a lawn mowing service next summer. Describe the source documents that you would need to account for your activities. 10. How is the predetermined OH rate calculated? 11. What is an OH variance? What account is adjusted for the OH variance? 12. How do you know when manufacturing OH is over applied? Under applied? 13. How does a plant wide OH rate differ from a departmental OH rate? 14. What does the beginning balance on a job order cost sheet represent? 15. The cost of a job is $100 and it will sell for cost plus 50%. What is the price of the job? 16. Which job-order cost sheets support the finished goods inventory account?...
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Chapter+5+Discussion+Questions+-+SV - Process Inventory...

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