Account I increased by: Is decreased by: Raw Materials Irventory Materials purchased Materials used Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold

Discuss how the predetermined factory overhead rate can be used in job order cost accounting to assist management in pricing jobs. Why use a predetermined factory overhead rate ?

A job order cost system identifies costs with a particular job rather than with a set time period. True False

Which of the following statements are true? I. In a job-order costing system, indirect labor is assigned to a job using information from the employee time ticket. II. If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process. III. In a job-order costing system, costs are traced to individual units of product. The sum total of such traced costs is called the unit product cost. Multiple Choice Only statement I is true. Statements I and II are true. Statements II and III are true. None of the statements are true.