Exam 5: Job-Order Costing

Figure 5-13. During February,Alexander,Inc.,worked on two jobs with the following data: Overhead is assigned on the basis of direct labor hours at a rate of $12.During February,Job 12 was completed and transferred to finished goods.Job 13 is the only unfinished job at the end of the month. Refer to Figure 5-13.

A job-order cost sheet is the source document where direct labor costs are assigned to individual jobs.

Which of the following is not on a time ticket?

The work-in-process account consists of all the job-order cost sheets for the completed jobs.

Ski Company produces various types of snow skis.Estimated overhead for the year was $720,000 and estimated direct labor hours were 240,000.During the month of June,17,400 direct labor hours were worked,$50,400 of direct materials were used and the average wage was $12 per hour.In June,15,000 pairs of skis were produced.

Wright Corporation had the following information available for December of the current year: Plantwide overhead rate is 150% of direct labor costs.Job cost sheets had the following balances: Jobs Z3 and Z4 were not completed at the end of December.What is the balance in work-in process for Wright at the end of December?

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November.It applies overhead based on direct labor hours and those equaled 14,600 in November.Overhead for the year was estimated to be $900,000.How many direct labor hours were estimated for the year?

Figure 5-14 Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows: Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process. Refer to Figure 5-14 Required: A.)The actual overhead for December was $41,100,calculate the variance. B.)Calculate the sales price for Job #684. C.)Calculate the adjusted cost of goods sold for the month of December. D.)If selling and administrative expenses for the month totaled $5,600,what is the company's operating income for December?

Figure 5-9. Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: Refer to Figure 5-9.What is the correct journal entry to record actual overhead for the month?

Which account can sometimes be skipped when a good is produced for a particular customer?

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year,Carlson estimated its overhead costs at $240,000,direct labor hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $249,280,actual direct labor hours were 41,000,and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours,what is the total amount credited to the plantwide overhead account for the year for Carlson?

Consider two costing systems,normal costing and actual costing.

Figure 5-2. At the beginning of the year,Kyla Inc.estimated that overhead would be $880,000 and direct labor hours would be 220,000.At the end of the year,actual overhead was $920,600 and there were actually 230,000 direct labor hours. Refer to Figure 5-2.What is the predetermined overhead rate?

How are unit costs calculated?

Jocarro Company has a job costing system.The following items appeared in the Work-in-Process account during February of the current year:

Figure 5-4. Hill Company uses job-order costing.At the end of the month,the following data was gathered: Hill's selling price is cost plus 50% for each of its products. Refer to Figure 5-4.What is the total in Finished Goods?

The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

The unit cost of a job consists of the total costs of

Ring Company designs and builds jewelry.During June it had applied overhead of $120,000.Overhead is applied at the rate of 75% of direct labor cost.Direct labor wages average $20 per hour. How many direct labor hours did Ring Company have for the month of June?