Exam 20: Job Order Costing

A job order cost system is most appropriate when a large volume of uniform products are produced.

The entry to record the acquisition of raw materials on account is

Job cost sheets constitute the subsidiary ledger for the

In determining total manufacturing costs on the cost of goods manufactured schedule

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 Overhead applied 184,000 Cost of goods manufactured 900,000 Total manufacturing costs 856,000 How much is Greer Company's ending work in process inventory for the year?

Mike Hilyer is confused about under and overapplied manufacturing overhead. Define the terms for Mike and indicate the balance in the manufacturing overhead account applicable to each term.

A copy of the materials requisition slip would not include the:

Job cost sheets for Howard Manufacturing are as follows: Instructions (a) Answer the following questions. 1. What was the balance in Work in Process Inventory on July 1 if these were the only unfinished jobs? 2. What was the predetermined overhead rate in June if overhead was applied on the basis of direct labor cost? 3. If July is the start of a new fiscal year and the overhead rate is 20% higher than in the preceding year how much overhead should be applied to Job 210 in July? 4. Assuming Job 210 is complete what is the total and unit cost of the job? 5. Assuming Job 211 is the only unfinished job at July 31 what is the balance in Work in Process Inventory on this date? (b) Journalize the summary entries to record the assignment of costs to the jobs in July. (Note: Make one entry in total for each manufacturing cost element.)

The predetermined overhead rate is based on the relationship between

The manufacturing operations of Bryant Inc. had the following balances for the month of January: \ Inventories January 1 January 31 Raw materials \ 12,000 \ 13,000 Work in process 21,000 23,000 Finished goods 14,000 16,000 Bryant transferred $290000 of completed goods out of work in process during January. Instructions Compute the cost of goods sold.

Manufacturing cost data for Dolan Company which uses a job order cost system are presented below: Case A Case B Direct Materials Used (a) \ 103,000 Direct Labor \ 70,000 150,000 Manufacturing Overhead Applied 63,000 () Total Manufacturing Costs 240,000 () Work in Process, 1/1/17 () 45,000 Total Cost of Work in Process 300,000 () Work in Process, 12/31/17 (c) 40,000 Cost of Goods Manufactured 205,000 () Instructions Indicate the missing amount for each letter. Assume that overhead is applied on the basis of direct labor cost and that the rate is the same for both cases.

During 2017 Durham Manufacturing expected Job No. 51 to cost $300000 of overhead $500000 of materials and $200000 in labor. Durham 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. What amount was transferred to Finished Goods?

During the first year of operations Shapiro Tool accumulated the following manufacturing costs: Raw materials purchased on account \ 12,000 Factory labor accrued 6,000 Incurred manufacturing overhead on account 4,000 Instructions Prepare separate journal entries for each manufacturing cost.

Selected accounts of Kosar Manufacturing Company at year end appear below: Instructions Explain the probable transaction that took place for each of the items identified by letters in the accounts. For example: (a) Raw materials costing $40000 were purchased.

At December 31 Ding Company reported the following balances in its accounts: Cost of Goods Sold \ 210,000 Finished Goods Inventory 30,000 The company's balance in its Manufacturing Overhead account at the same date was a debit of $2800. Instructions Prepare the entry to adjust the over- or underapplied overhead amount at December 31.

At the end of the year any balance in the Manufacturing Overhead account is generally eliminated by adjusting

In a job order cost system each entry to the Work In Process Inventory account should be accompanied by a posting to one or more job cost sheets.

Manufacturing overhead is applied to jobs by means of a ___________________ rate.

Foster Manufacturing uses a job order cost accounting system. On April 1 the company has Work in Process Inventory of $7600 and two jobs in process: Job No. 221 $3600 and Job No. 222 $4000. During April a summary of source documents reveals the following: For Materials Requisition Slips Labor Time Tickets Job No. 221 \ 1,200 \ 2,100 222 1,700 2,200 223 2,400 2,900 224 2,600 2,800 General use 600 400 Totals \ 8,500 \ 10,400 Foster applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 221 is completed during the month. Instructions (a) Prepare summary journal entries to record the raw materials requisitioned factory labor used the assignment of manufacturing overhead to jobs and the completion of Job No. 221. (b) Calculate the balance of the Work in Process Inventory account at April 30.

Gulick Company developed the following data for the current year: Beginning work in process inventory \ 240,000 Direct materials used 144,000 Actual overhead 288,000 Overhead applied 216,000 Cost of goods manufactured 264,000 Total manufacturing costs 720,000 Gulick Company's ending work in process inventory is