ASSIGNMENT CLASSIFICATION TABLE

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 7/e, Solutions Manual (For Instructor Use Only) 2-1

CHAPTER 2

Job Order Costing

ASSIGNMENT CLASSIFICATION TABLE

Learning Objectives

Questions Brief Exercises

Do It!

Exercises A Problems

• Describe cost systems and

the flow of costs in a job order system.

1, 2, 3, 4, 5,

6, 7, 8

1, 2 1 1, 2, 3, 4, 6,

7, 8, 9, 11

1A, 2A, 3A,

5A

• Use a job cost sheet to

assign costs to work in process.

9, 10, 11, 12 3, 4, 5 2 1, 2, 3, 6, 7,

8, 10, 12

1A, 2A, 3A,

5A

• Demonstrate how to

determine and use the predetermined overhead rate.

13, 14, 15 6, 7 3 2, 3, 5, 6, 7,

8, 11, 12, 13

1A, 2A, 3A,

4A, 5A

• Prepare entries for

manufacturing and service jobs completed and sold.

16 8, 9 4 2, 3, 6, 7, 8,

10, 11, 12

1A, 2A, 3A,

5A

• Distinguish between under-

and overapplied manufacturing overhead.

17, 18 10 5 4, 5, 9, 13 1A, 2A, 3A,

4A, 5A

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2-2 Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 7/e, Solutions Manual (For Instructor Use Only)

ASSIGNMENT CHARACTERISTICS TABLE

Problem Number

Description Difficulty Level Time Allotted (min.)

1A Prepare entries in a job order cost system and job cost sheets.Simple 3040

2A Prepare entries in a job order cost system and partial income statement.Moderate 3040

3A Prepare entries in a job order cost system and cost of goods manufactured schedule.Simple 3040

4A Compute predetermined overhead rates, apply overhead, and calculate under- or overapplied overhead.Simple 2030

5A Analyze manufacturing accounts and determine missing amounts.Complex 3040

BLOOM’S TAXONOMY TABLE

Copyright © 2015 John Wiley & Sons, Inc.

Weygandt, Managerial Accounting,

7/e, Solutions Manual

( For Ins tructor Use Only)

2 - 3

Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-Chapter Exercises and Problems

Learning Objective Knowledge Comprehension Application Analysis Synthesis Evaluation

• Describe cost systems and the

flow of costs in a job order system.Q2-5 Q2-7 Q2-8

Q2-1 Q2-4

Q2-2 Q2-6

Q2-3 BE2-1

BE2-2 DI2-1 E2-1 E2-2 E2-3 E2-6 E2-7 E2-8 E2-9 E2-11 P2-1A P2-3A E2-4 P2-2A P2-5A

• Use a job cost sheet to assign

costs to work in process.Q2-11 Q2-12 Q2-9 Q2-10 BE2-3 BE2-4 BE2-5 DI2-2 E2-1 E2-2 E2-3 E2-6 E2-7 E2-8 E2-10 E2-12 P2-1A P2-3A P2-2A P2-5A

• Demonstrate how to determine

and use the predetermined overhead rate.

Q2-15 Q2-13

Q2-14 BE2-6 BE2-7 DI2-3 E2-2 E2-3 E2-6 E2-7 E2-8 E2-11 E2-12 E2-13 P2-1A P2-3A P2-4A E2-5 P2-2A P2-5A

• Prepare entries for

manufacturing and service jobs completed and sold.Q2-16 BE2-9 BE2-8 DI2-4 E2-2 E2-3 E2-6 E2-7 E2-8 E2-10 E2-11 E2-12 P2-1A P2-3A P2-2A P2-5A

• Distinguish between under- and

overapplied manufacturing overhead.Q2-17 Q2-18 E2-9

BE2-10

E2-13 P2-1A P2-3A P2-4A

DI2-5 E2-4 E2-5 P2-2A P2-5A

Broadening Your Perspective BYP2-3

BYP2-4

CD-2 BYP2-2 BYP2-1

BYP2-5

BYP2-6

BYP2-7

2-4 Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 7/e, Solutions Manual (For Instructor Use Only)

ANSWERS TO QUESTI ONS

• (a) Cost accounting involves the measuring, recording, and reporting of product costs. A cost

accounting system consists of manufacturing cost accounts that are fully integrated into the general ledger of a company.(b) An important feature of a cost accounting system is the use of a perpetual inventory system that provides immediate, up-to-date information on the cost of a product.

• (a) The two principal types of cost accounting systems are: (1) job order cost system and

(2) process cost system. Under a job order cost system, costs are assigned to each job or batch of goods; at all times each job or batch of goods can be separately identified. A job order cost system measures costs for each completed job, rather than for set time periods.Under a process cost system, product-related costs are accumulated by or assigned to departments or processes for a set period of time. Job order costing lends itself to specific, special-order manufacturing or servicing while process costing is better suited to similar, large- volume products and continuous process manufacturing.(b) A company can use both types of systems. For example, General Motors uses process costing for standard model cars and job order costing for custom-made vehicles.

• A job order cost system is most likely to be used by a company that receives special orders, or

custom builds, or produces heterogeneous items or products; that is, the product manufactured or the service rendered is tailored to the customer or client’s requests, needs, or situation. Examples of industries that use job order systems are custom home builders, commercial printing companies, motion picture companies, construction contractors, repair shops, accounting and law firms, hospitals, shipbuilders, and architects.

• A process cost system is most likely to be used by manufacturing firms with continuous production

flows usually found in mass production, assembly line, large-volume, uniform, or relatively similar product industries. Companies producing appliances, chemicals, pharmaceuticals, rubber and tires, plastics, cement, petroleum, and automobiles utilize process cost systems.

• The major steps in the flow of costs in a job order cost system are: (1) accumulating the manufacturing

costs incurred and (2) assigning the accumulated costs to work done.

6. The three inventory control accounts and their subsidiary ledgers are:

Raw materials inventory—materials inventory records.Work in process inventory—job cost sheets.Finished goods inventory—finished goods records.

• The source documents used in accumulating direct labor costs are time tickets and time cards.

• Disagree. Entries to Manufacturing Overhead are also made at the end of an accounting period.

For example, there will be adjusting entries for factory depreciation, property taxes, and insurance.

• The source document for materials is the materials requisition slip and the source document for

labor is the time ticket. The entries are:

Materials Labor

Work in Process Inventory Manufacturing Overhead Raw Materials Inventory XX XX

XX Work in Process Inventory Manufacturing Overhead Factory Labor XX XX

XX