Exam 20: Job Order Costing

Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations: 1. Direct materials requisitioned during the month: 2. Direct labor incurred and charged to jobs during the month was: 3. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labor costs. 4. Actual manufacturing overhead costs incurred during the month amounted to $66,000. 5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month. Instructions (a) Prepare journal entries to record the above transactions. (b) Answer the following questions: 1. How much manufacturing overhead was applied to Job 103 during the month? 2. Compute the unit cost of Jobs 101 and 103. 3. What is the balance in Work In Process Inventory at the end of the month? 4. Determine if manufacturing overhead was under- or overapplied during the month. How much?

During 2010, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $280,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

At May 31, 2010, the accounts of Kuhlmann Manufacturing Company show the following. 1. May 1 inventories-finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories-finished goods $8,500, work in process $22,900, and raw materials $7,100. 3. Debit postings to work in process were: direct materials $67,400, direct labor $32,000, and manufacturing overhead applied $45,000. 4. Sales totaled $210,000. Instructions (a) Prepare a condensed cost of goods manufactured schedule. (b) Prepare an income statement for May through gross profit.

For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $300,000 of factory labor costs are incurred of which $80,000 is indirect labor. Actual overhead incurred was $160,000. The amount of overhead debited to Work in Process Inventory should be:

In January, Harlan, Inc. production supervisor requisitioned raw materials for production as follows: Job 1 $600, Job 2 $900, Job 3 $300, and general factory use, $520. Instructions Prepare a summary journal entry to record raw materials used.

The manufacturing operations of Bryant, Inc. had the following balances for the month of January: Bryant transferred $250,000 of completed goods out of work in process during January. Instructions Compute the cost of goods sold.

Which of the following would be accounted for using a job order cost system?

Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $820,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $840,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?

Time tickets should be approved by

If $20,000 direct materials are requisitioned for a job and $7,000 of indirect materials are requisitioned for general use, the debit to Work In Process Inventory should be for $______________.

Lando Company reported the following amounts for 2010: Raw materials purchased $98,000 Ending work in process inventory $ 6,300 Beginning raw materials inventory 5,200 Manufacturing overhead costs applied 36,000 Ending raw materials inventory 4,500 Beginning work in process inventory 6,100 Instructions Calculate the cost of materials used in production

Overhead application is recorded with a

Minton Company provided the following information from its accounting records for 2010: How much is the overhead application rate if Minton Company bases it on direct labor hours?

Emley Company incurred direct materials costs of $450,000 during the year. Manufacturing overhead applied was $420,000 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?

Factory labor costs

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

In a job order cost accounting system, the Raw Materials Inventory account is

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $75,000 of direct materials costs and $90,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $80,000 of direct materials costs and $120,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

A job cost sheet of Fugate Company is given below. Instructions (a) Answer the following questions. (1) What is the predetermined manufacturing overhead rate? (2) What are the total cost and the unit cost of the completed job? (b) Prepare the entry to record the completion of the job.