LO1. How do manufacturing companies use job order and process costing systems? a) Name two reasons why it is important to know unit costs? i) ii) b) In job order costing, costs are accumulated by c) In process costing, costs are accumulated by d) A is the production of a single unique product or specialized service, or a batch or unique products LO2. How do materials and labor costs flow through the job order costing system? a) A job cost record is a document that shows the and costs for an individual job. b) The cost of direct materials is transferred out of Raw Materials and assigned to Inventory c) The cost of direct labor is transferred and assigned to d) Indirect labor and indirect materials costs are accumulated in Inventory LO3. How do overhead costs flow through the job order costing system? a) When journalizing for actual overhead costs, the debit entry is to b) What are three examples of cost drivers: i) ii) iii) c) If total estimated overhead costs are $100,000 and estimated machine hours are 200,000 hours, what is the predetermined overhead allocation rate? d) If the predetermined overhead allocation rate is $2.00 per machine hour and the actual machine usage for job 21 is 30 machine hours, what is the allocated manufacturing overhead cost for job 212 104. What happens when products are completed and sold? a) To transfer finished units to finished goods, the journal entry is to debit and credit b) Journalize for the sale on account of $1,000, the cost of goods sold was $700. Date Accounts and Explanation Debit Credit LOS. How is the manufacturing overhead account adjusted? a) Actual manufacturing overhead is $1.200 and allocated manufacturing overhead is $1,000. Journalize the adjustment required to close out the manufacturing overhead account Date Accounts and Explanation Debit Credit L06. How do service companies use a job order costing system? a) If ABC Company pays John Jones $50,000 per year, what is the hourly cost to employing Mr. Jones assuming a normal 40-hour work week for 50 weeks per year? b) Based on your answer in part a), what direct labor cost would be assigned to job 37 if Mr. Jones works 10 hours on this job