Under a job order costing system, individual jobs are allocated an estimated amount of overhead costs (MOH or FOH), and this dollar amount is debited to Work-in-Process inventory. TRUE FALSE

A production cost report shows the cost of a specific job manufactured in the reporting period. True or False True False

True or false In a job costing system companies must accumulate costs and then assign costs to each job.

The journal entry for adjustment of underallocated manufacturing overhead includes a: A) credit to Finished Goods Inventory. B) credit to Manufacturing Overhead. C) debit to Work-in-Process Inventory. D) credit to Cost of Goods Sold.

Only product costs are recorded on job cost sheets. True or False True False

When using a normal costing system     direct material and direct labor are recorded at standard cost and overhead is treated as a period cost.   direct material and direct labor are recorded at actual cost and overhead is treated as a period cost.   direct material and direct labor are recorded at standard cost and overhead is applied to products using a predetermined overhead rate.   direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate.

The job-order cost sheet accumulates the cost of all the jobs produced. True O False

In the Excel, or spreadsheet, approach to recording financial transactions, the Manufacturing Overhead account is used to record two things-all actual overhead expenses and the amount of manufacturing overhead applied to production using the predetermined overhead rate. True or False True False

Which of the following statements is true?a. Job-order costing is used only in manufacturing firms.b. Process costing is used only for services.c. Job-order costing is simpler to use than process costing because the recordkeepingrequirements are less.d. The job cost sheet is subsidiary to the work-in-process account.e. All of these

Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare thenecessary journal entry.