Exam 20: Job Order Costing

Total manufacturing costs for a period consists of the costs of direct materials used the cost of direct labor incurred and the manufacturing overhead applied during the period.

If the entry to assign factory labor showed only a debit to Work In Process Inventory then all labor costs were

Sportly Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: Direct materials \ 110,000 Direct labor \ 60,000 Manufacturing overhead applied \ 40,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

Colby Company estimates that annual manufacturing overhead costs will be $600000. Estimated annual operating activity bases are: direct labor cost $460000 direct labor hours 40000 and machine hours 80000. The actual manufacturing overhead cost for the year was $601000 and the actual direct labor cost for the year was $456000. Actual direct labor hours totaled 39800 and machine hours totaled 79000. Colby applies overhead based on direct labor hours. Instructions Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount.

Overapplied manufacturing overhead exists when overhead assigned to work in process is

The job cost sheet does not show

At the end of the year any balance in the Manufacturing Overhead account should be eliminated as an adjustment to ___________________.

Manufacturing overhead is applied to each job

Builder Bug Company allocates 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 20 hours to complete. Employees earn $15 per hour. Instructions Compute the total cost of Job A45.

Which of the following shows entries only to control accounts? a. Factory Labor Factory Wages Payable b. Work in Process Factory Labor Raw Materials Inventory Factory Wages Payable c. Work in Process Manufacturing Overhead Raw Materials Inventory d. Factory Labor Raw Materials Inventory Accounts Payable Factory Wages Payable

Barger Company had the following information at December 31: Finished goods inventory January 1 $ 90000 Finished goods inventory December 31 126000 If the cost of goods manufactured during the year amounted to $1895000 and annual sales were $2994000 how much is the amount of gross profit for the year?

Manufacturing Overhead would not have a subsidiary account for

Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.

If at the end of the year Manufacturing Overhead has been overapplied it means that

A major purpose of cost accounting is to

During 2016 Arb Company incurred the following direct labor costs: January $20000 and February $30000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months respectively totaled $19500 and $35700. Actual overhead for the 2 months respectively totaled $25000 and $33500. Instructions Determine if overhead is over- or underapplied for each of the two months and the respective amounts.

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

Fort Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account $85000. 2. Raw Materials of $30000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6000 was classified as indirect materials. 3. Factory labor costs incurred were $175000 of which $145000 pertained to factory wages payable and $30000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $145000 was direct labor and $30000 was indirect labor. 5. Overhead costs incurred on account were $198000. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $115000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. 8. Finished goods costing $100000 to manufacture were sold on account for $130000. Instructions Journalize the above transactions for Fort Corporation.

Hayward Manufacturing Company developed the following data: Beginning work in process inventory \ 900,000 Direct materials used 700,000 Actual overhead 1,100,000 Overhead applied 800,000 Cost of goods manufactured 1,200,000 Ending work in process 1500,000 Hayward Manufacturing Company's total manufacturing costs for the period is

When raw materials are received there is no effort at this point to associate the cost of materials with specific jobs.