Reference no: EM132700507

Problem 1: Which of the following statements are true?

I. In a normal job order costing system, factory overhead is applied using predetermined rates times actual input
II. In a job order costing system, costs are accumulated for each individual job

a. I only
b. II only
c. Both I and II
d. None of the statements are true

Problem 2: Over-applied overhead that is material in amount is allocated between Finished Goods inventory, Work in process Inventory and Cost of Goods sold at year end. Over-applied factory overhead that is immaterial in amount is closed to Cost of Goods Sold at year end.

a. First and second sentence are true
b. First and second sentence are false
c. Only the first statement is true
d. Only the second statement is true