Exam 3: Job Costing

Venus Crates manufactures custom crates for a variety of uses. The following data have been recorded for Job 551, which was recently completed. Direct materials used cost $7,200. There were 82 machine hours used on this job. The predetermined overhead rate is $30 per machine hour used. There were 175 direct labor hours worked on this job at a direct labor wage rate of $24 per hour. What is the total manufacturing cost of Job 551?

Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: If Nadal Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

The following account balances at the beginning of January were selected from the general ledger of Bluestone Industries: Work in process inventory $0 Raw materials inventory $30,900 Finished goods inventory $54,800 Additional data:1)Actual manufacturing overhead for January amounted to $80,500. 2)Total direct labor cost for January was $70,000; actual direct labor hours for January were 4,200. 3)The predetermined manufacturing overhead rate is based on direct labor hours. The budget for the year called for $350,000 of direct labor cost and $425,000 of manufacturing overhead costs. Estimated direct labor hours for the year were expected to be 20,000. 4)The only job unfinished on January 31 was Job No. 449, for which total direct labor charges were $22,000 (1,200 direct labor hours)and total direct material charges were $17,600. 5)Cost of direct materials placed in production during January totaled $129,500. There were no indirect material requisitions during January. 6)January 31 balance in raw materials inventory was $30,000. "7)Finished goods inventory balance on January 31 was $44,700. Required: a)Determine the predetermined manufacturing overhead rate. b)Determine the amount of materials purchased during January. c)Determine cost of goods manufactured for January. d)Determine the work in process inventory balance on January 31. e)Determine cost of goods sold for January. f)Determine whether manufacturing overhead is overallocated or underallocated and by what amount at Jan. 31."

Which of the following entries would be made to record the purchase of $30,000 of raw materials?

Job order costing might be used by a

Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available: Actual data for completed Job No. 650 is as follows: What is the predetermined manufacturing overhead rate for the Trimming Department?

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to

A paper mill company like International Paper would most likely use job costing.

In the flow of costs, which of the following comes last?

Under a perpetual inventory system, the journal entry needed to record the sale of a job includes a

For a manufacturing system, inventory flows from raw materials inventory to work in process inventory to finished goods inventory.

Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following: The predetermined manufacturing overhead rate per direct labor hour is closest to

A ________ is used to accumulate the costs of a job.

The law firm of Lyons & Lyons uses a job costing system to accumulate client-related costs. The indirect cost allocation rate is 80% of direct labor cost. Staff time is charged at a rate of $65 per labor hour. A recent job for a client involved 30 staff labor hours by staff lawyers. Compute the cost of the job.

Hardrock Company uses job costing. Hardrock Company has two departments, Sanding and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Sanding Department and direct labor hours in the Finishing Department. The following additional information is available: Actual data for completed Job No. 140 is as follows: a)Compute the predetermined manufacturing overhead rate for the Sanding Department. b)Compute the predetermined manufacturing overhead rate for the Finishing Department. c)What is the total manufacturing overhead cost for Job. No. 140? d)If Job No. 140 consists of 500 units of product, what is the average unit cost of this job?

Briefly explain the cost flow of materials through a job costing system from the purchase to the sale.

The cost of direct materials used in production is debited to

If manufacturing overhead has been underallocated during the period, and most of the jobs produced have been sold, then

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 250,000 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 240,000 machine hours were used. By how much was manufacturing overhead overallocated or underallocated for the year?

Anderson Enterprises uses a job costing system. Record the following transactions in Paulson Enterprises's general journal for the current month: a)Purchased raw materials on account, $82,000. b)Requisitioned $41,300 of direct materials and $9,000 of indirect materials for use in production. c)Factory payroll incurred, $110,000; 75% direct labor, 25% indirect labor. d)Recorded depreciation expense factory equipment $15,000, and other manufacturing overhead of $56,200 (credit accounts payable). e)Allocated manufacturing overhead costs based on 125% of direct labor cost. f)Cost of completed production for the current month, $133,000. g)Cost of finished goods sold, $112,000; selling price, $162,000 (all sales on account).