Exam 14: Job Order Costing

Barr Mfg. provided the following information from its accounting records for 2017: Expected production 60,000 labor hours Actual production 56,000 labor hours Budgeted overhead \ 900,000 Actual overhead \ 870,000 How much is the overhead application rate if Barr bases the rate on direct labor hours?

Raw Materials Inventory, Factory Labor, and Manufacturing Overhead are all control accounts in the general ledger when a job order cost accounting system is used.

Greer Company developed the following data for the current year: Beginning work in process inventory \ 136,000 Direct materials used 208,000 Actual overhead 176,000 Cverhead applied 184,000 Cost of goods manufactured 900,000 Total manufacturing costs 856,000 How much is Greer Company's direct labor cost for the year?

The formula for the predetermined overhead rate is estimated annual overhead costs divided by an expected annual operating activity.

All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except:

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240,000 of direct materials costs and $320,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

The job cost sheet does not show

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $360,000. The amount of overhead debited to Work in Process Inventory should be:

Cost of goods manufactured equals $85,000 for 2017. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2017 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

Usually, under- or overapplied overhead is considered to be an adjustment to

The predetermined overhead rate is

Spencer Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $6,400. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is $20,000?

Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost \ 1,600,000 Actual annual overhead cost \ 1,575,000 Estimated machine hours 400,000 Actual machine hours 390,000

Which of the following is not viewed as part of assigning manufacturing costs in a job order cost system?

Emley Company incurred direct materials costs of $750,000 during the year. Manufacturing overhead applied was $700,000 and is applied based on direct labor costs. The predetermined overhead rate is 70%. How much are Emley Company's total manufacturing costs for the year?

Materials requisition slips are costed

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is a. Finished Goods Inventory Direct Materials Direct Labor Manufacturing Overhead b. Work In Process Inventory Direct Materials Direct Labor Manufacturing Overhead c. Raw Materials Inventory Work In Process Inventory d. Finished Goods Inventory Work In Process Inventory

Redman Company manufactures customized desks. The following pertains to Job No. 978: Direct materials used \ 15.450 Direct labor hours worked 360 Direct labor rate per hour \ 15.00 Machine hours used 300 Applied factory overhead rate per machine hour \ 22.00 What is the total manufacturing cost for Job No. 978?

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

Accumulating and assigning manufacturing costs are two important activities in a job order cost system.