Use this lecture outline/guide to add notes from your reading under each topic. Include references to examples, exercises and problems that illustrate the concept.

1. What is job order costing?

1. When is it appropriate to use job order costing?

1. List 3 examples of products or services where job costing would be a logical choice for the product or service and explain why.

1. Define what is meant by "predetermined overhead rate."

1. What is the formula for calculating the predetermined overhead rate?

1. Describe how the predetermined overhead rate is used in assigning manufacturing overhead to jobs.

1. Give an example of the actual calculation of the predetermined overhead rate and how to use it. (Use an example from the textbook or practice problems or create your own.)

1. Write out the journal entries to record each of the following transactions related to starting and completing a job in the accounting records:
2. Raw materials are requisitioned to start Job #101. (Use xxx for the dollar amounts.)
3. The factory payroll is paid.
4. Direct labor associated with Job #101 is xxx. Indirect labor for Job #101 is xxx.
5. Utilities expense, rent on the factory building, depreciation expense on the factory equipment and insurance on the factory building were paid.
6. Manufacturing overhead is recorded for Job #101 using the predetermined overhead rate.
7. Job #101 is completed.
8. Job #101 is sold.

1. Describe how to determine whether manufacturing overhead is over or under applied.

1. What happens to the balance in the manufacturing overhead account at the end of the accounting period?

Answer rating: 100% (QA)

Lecture Outline Job Order Costing I Introduction to Job Order Costing A Definition of Job Order Costing B Appropriate Uses of Job Order Costing C Examples of Products or Services Suitable for Job Cost... View the full answer