There Are Four Resources and Four Jobs to Be Done

question 34

Multiple Choice

There are four resources and four jobs to be done. Assume there must be one-to-one matching between jobs and resources. The time required for each resource to do each job is as follows:

After the row reduction, what is the resulting entry in the new table for assigning resource 4 to Job D?

• A)0 hours
• B)2 hours
• C)3 hours
• D)6 hours
• E)9 hours

Calculate direct materials, direct labor, and factory overhead costs applied to jobs.

Understand the flow of costs in a job order cost accounting system from direct materials, direct labor, and factory overhead to Work in Process, Finished Goods, and Cost of Goods Sold.

Recognize how to record the transfer of costs from one production account to another, including Work in Process to Finished Goods, and Finished Goods to Cost of Goods Sold.

Identify and apply factory overhead rates to production costs.

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Definitions:

Consignor

The person or entity that owns goods on consignment and sends them to the consignee for sale or display.

Days' Sales in Inventory

A financial metric that measures the average number of days it takes for a company to sell its entire inventory during a given period.

Consignee

The individual or entity to whom goods are shipped to be sold on behalf of the owner, retaining no legal ownership until sales occur.

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they are incurred to generate revenues, matching expenses against revenues in the period in which the revenue was earned.