Exam 20: Job Order Costing

At the beginning of the year, Monroe Company estimates annual overhead costs to be $1,200,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

Which of the following is not used in assigning manufacturing costs to work in process inventory?

Sardin Company begins the month of March with $17,000 of work in process costs from Job 324. Information from job cost sheets shows the following additional costs assigned during March, April, and May of 2010: Job 324 was completed in March. Jobs 325 and 327 were completed in May, and Job 326 was completed in April. Jobs are sold during the month after completion. Total revenue for jobs sold during the 3-month period is $145,000. Instructions Calculate the balances of the work in process and finished goods inventory accounts at the end of May.

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

The perpetual inventory method cannot be used in a job order cost system.

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

Norman Company manufactures customized desks. The following pertains to Job No. 953: What is the total manufacturing cost for Job No. 953?

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 10 hours to complete. Employees earn $15 per hour. Instructions Compute the total cost of Job A45.

A job order cost system identifies costs with a particular job rather than with a set time period.

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

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

Manufacturing Overhead would not have a subsidiary account for

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

Lando Company reported the following amounts for 2010: Instructions Calculate (a) the cost of materials used in production and (b) total manufacturing costs.

Fancy Decorating uses a job order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. The company uses Operating Overhead in place of Manufacturing Overhead. Instructions (a) Compute the predetermined overhead rate. (b) Prepare the entry to apply the overhead for the year. (c) Determine whether the overhead was under - or overapplied and by how much.

Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2010 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 40 machines. How much is the cost per machine?

Gallagher Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $400,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $422,000 of overhead costs are incurred and 130,000 hours are used. Instructions (a) Compute the manufacturing overhead rate for the year. (b) What is the amount of under - or overapplied overhead at December 31? (c) Assuming the under - or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold

Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: Instructions Compute (a) the predetermined overhead rate and (b) the amount of applied manufacturing overhead.

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