1. Describe the characteristics of companies likely to use a job costing system. Explain how these characteristics differ from companies likely to use a process costing system.
2. What information is included on the materials requisition form?
3. What is the purpose of a job cost sheet? Describe the information typically included on a job cost sheet.
4. What information is included on a timesheet?
5. What is the purpose of using a predetermined overhead rate?
6. What is anormal costing system, and why do companies tend to use a normal costing system to apply overhead to jobs rather than using actual overhead costs?
7. Describe the two important factors in selecting an overhead allocation base.
8. What cost information is recorded on the debit side of the manufacturing overhead account, and what information is recorded on the credit side?
9. When is manufacturing overhead underapplied? When is it overapplied?
10. What two options are available when closing the manufacturing overhead account at the end of the period, depending on the significance of the balance?
11. How might a job costing system used by a service organization differ from a job costing system used by a manufacturing organization?
12. How does a job costing system help a company evaluate the profitability of jobs?