I. The basic parts of a job order costing system are the:

A. Cost ______________ and _________________ procedures.

B. ____________________ documents.

C. Accounts that a company uses when it incurs costs for direct ____________, direct ________________, and ___________________.

II. Accounting for materials requires three types of entries.

A. With the ______________ of materials, debit Materials Inventory and credit Accounts Payable.

B. With the _______________ of direct materials to ________________, debit Work in Process Inventory and credit Materials Inventory.

C. With the transfer of __________________ materials to production, debit Overhead and credit Materials Inventory.

III. Accounting for labor requires two types of entries.

A. For payroll costs incurred for _____________ labor, debit Work in Process Inventory and credit Payroll Payable.

B. For payroll costs incurred for _______________ labor, debit Overhead and credit Payroll Payable.

IV. Accounting for other overhead requires two types of entries.

A. Other overhead includes plant ____________, property _____________, insurance, and _______________.

B. To record _____________ overhead costs, debit Overhead and credit Cash or Accumulated Depreciation.

C. To record _____________ overhead costs, debit Work in Process Inventory and credit Overhead.

D. The actual (debits) and estimated (credits) overhead costs are ________________ at the end of the period to determine the accuracy of overhead cost recognition.

V. To record the transfer of ________________ units, debit Finished Goods Inventory and credit Work in Process Inventory.

VI. When a company uses a perpetual inventory system, two accounting entries are made when products are sold.

A. To record the sold products ________________, debit Accounts Receivable (or Cash) and credit Sales.

B. To record the sold products associated ____________, debit Cost of Goods Sold and credit Finished Goods Inventory.

VII. Each job in production has a job order _________________.

A. Has space for direct materials, direct labor, and overhead costs.

B. Includes the job order number, product specifications, customer name, date of order, projected completion date, and a cost summary.

C. For incomplete jobs, they make up the _______________ ledger for the Work in Process Inventory account.

D. When a job is completed, the costs are totaled on the _____________________.

1. Unit cost is computed to _____________ items in inventory.

2. Product ___________ Cost = Total Costs for Job Number of Good Units Produced

VIII. Job order costing systems are also used in ______________ organizations.

A. Job order cost cards track ________________ contracts.

IX. Overhead costs are allocated in four steps.

A. Step 1: _____________ the overhead rate.

1. A ________________ overhead rate is calculated as estimated overhead costs divided by estimated cost driver activity.

B. Step 2: ______________ the overhead rate.

1. Costs are assigned by multiplying the actual cost _____________ activity by the predetermined overhead rate.

C. Step 3: Record ________________ overhead costs

D. Step 4: _________________ applied and actual overhead amounts

1. If over- or underapplied amounts are minimal, credit or debit _________________.

2. If over- or underapplied amounts are material, adjustments should be made to the inventory accounts affected.

X. The __________________ approach to applying overhead costs is to use a single plantwide rate.

XI. The more accurate _____________________ approach to applying overhead costs creates many smaller activity pools and establishes separate rates for each pool.