Exam 20: Job Order Costing

Emley Company incurred direct materials costs of $750000 during the year. Manufacturing overhead applied was $700000 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?

Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period?

For Jacobs Company the predetermined overhead rate is 70% of direct labor cost. During the month $600000 of factory labor costs are incurred of which $140000 is indirect labor. Actual overhead incurred was $320000. The amount of overhead debited to Work in Process Inventory should be:

During 2017 Cotte Manufacturing expected Job No. 59 to cost $300000 of overhead $500000 of materials and $200000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $295000 $570000 in materials used and $220000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?

A ______________ cost system is appropriate when similar products are continuously produced whereas a ______________ cost system would be more appropriate if the product is custom-made.

Bridal Treasures Inc. makes customized wedding gowns. The customer selects a pattern for the basic gown and then selects fabric and trim. Once the design and the materials have been agreed upon a Statement of Estimated Cost is signed by the company and by the customer. Overhead is applied based on the number of days a gown is in process. Usually five gowns are being worked on at a time. Therefore each gown is charged 1/5 of a daily estimated overhead amount. Customer Mary Landon's wedding dress took four days to complete. However after the first three days had elapsed Hanna Hunt a movie personality suddenly decided to get married and ordered a very lavish gown. All other work was suspended and the work on Ms. Landon's dress was delayed six days. The final day of its construction was on the tenth day after it had been begun. Required: You are the accounting manager for Bridal Treasures. Write a memo to the billing department. Instruct them as to the appropriate number of overhead days to charge to Ms. Landon's account.

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period overhead is said to be

A process cost system would be used for all of the following except the

Which one of the following best describes a job cost sheet?

Conceptually any under- or overapplied overhead at the end of the year should be allocated among all of the following except

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

A materials requisition slip showed that direct materials requested were $66000 and indirect materials requested were $9000. The entry to record the transfer of materials from the storeroom is a. Work In Process Inventory 66,000 Raw Materials Inventory 66,000 b. Direct Materials 66,000 Indirect Materials 9,000 Work In Process Inventory 75,000 c. Manufacturing Overhead 75,000 Raw Materials Inventory 75,000 d. Work In Process Inventory 66,000 Manufacturing Overhead 9,000 Raw Materials Inventory 75,000

The predetermined overhead rate is

Vektek Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2100000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

In a job order system raw materials purchased are charged to the ______________ account.

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

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

Time tickets should be approved by

Builder Bug Company allocates manufacturing overhead at $9 per direct labor hour. Job A45 required 4 boxes of direct materials at a cost of $30 per box and took employees 14 hours to complete. Employees earn $15 per hour. Instructions Compute the total cost of Job A45.