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Exam 15: Job Order Costing and Analysis

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Question 91

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The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000.Actual costs incurred were: a.Calculate the predetermined overhead rate and calculate the overhead applied during the year. b.Prepare the journal entry to eliminate the over- or underapplied overhead,assuming that it is not material in amount.

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a.Predetermined overhead rate ...

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Question 92

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The journal entry to record indirect materials used includes a debit to Work in Process Inventory.

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Question 93

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Features of job order production include all of the following except:

Omega Construction manufactures homes to customer specifications.It most likely uses:

Using the following accounts and a predetermined overhead rate of 90% of direct labor cost,determine the amount of applied overhead.

When overhead is underapplied at the end of a period,the adjusting journal entry includes a credit to Cost of Goods Sold.

Cost accounting systems are used to:

If overhead is overapplied,it means that individual jobs have not been charged enough overhead during the year and the cost of goods sold reported is too low.

Prepare journal entries to record the following transactions and events for April using a job order costing system. (a)Purchased raw materials on credit,$69,000. (b)Raw materials requisitioned: $26,000 direct and $5,400 indirect. (c)Factory payroll totaled $46,000,including $9,500 indirect labor. (d)Paid other actual overhead costs totaling $14,500 cash. (e)Applied overhead totaling $28,200. (f)Finished and transferred jobs totaling $77,500. (g)Jobs costing $58,800 were sold on credit for $103,000.

The following data relates to the Mass Company's first operating period.Calculate the total cost of goods sold for each product.

The Work in Process Inventory account of a manufacturing company has a $4,400 debit balance.The company applies overhead using direct labor cost.The cost sheet of the only job still in process shows direct material cost of $2,000 and direct labor cost of $800.Therefore,the company's predetermined overhead rate is:

The Factory Overhead account will have a debit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Luna Manufacturing Company has the following job cost sheets on file.They represent jobs that have been worked on during September of the current year.This table summarizes information provided on each sheet: (a)What is the cost of the Work in Process inventory on September 30? (b)What is the cost of the finished goods inventory on September 30? (c)What is the cost of goods sold for the month of September?

Adams Manufacturing allocates overhead to production on the basis of direct labor costs.At the beginning of the year,Adams estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000.During the year Adams incurred $418,000 in materials costs,$413,200 in overhead costs and $224,000 in direct labor costs. -Compute the predetermined overhead rate.

When direct labor is assigned to specific jobs,________ is debited.

What is a cost accounting system? What are the two basic types of cost accounting systems?

Oddley Corp.uses a job order costing system.The following information pertains to costs applied to jobs during the current year: Oddley Corp.'s predetermined overhead rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of actual factory overhead has been incurred. (a) Determine the amount of overapplied or underapplied overhead. (b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

A job order costing system would be appropriate for a manufacturer of automobile tires.

Under a job order costing system,individual jobs are charged with actual overhead costs when they are transferred to finished goods.

Mango Company applies overhead based on direct labor costs.For the current year,Mango Company estimated total overhead costs to be $300,000,and direct labor costs to be $150,000.Actual overhead costs for the year totaled $330,000,and actual direct labor costs totaled $170,000. -At year-end,Factory Overhead account is: