Exam 3: Job Costing

Deco Corporation uses a job costing system. On January 1, Deco Corporation's work in process inventory account had a balance of $75,000. During the year, materials requisitioned for use in production amounted to $120,000, of which $82,000 represented direct materials. Factory wages for the period were $231,000, of which $219,000 were for direct labor. Manufacturing overhead is allocated on the basis of 85% of direct labor cost. Actual overhead cost for the year was $125,000. Jobs costing $345,000 were completed during the year. The December 31 work in process inventory balance is

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning work in process inventory?

How is the cost of indirect materials used in the factory recorded?

Manufacturing overhead has an overallocated balance of $7,500; raw materials inventory balance is $62,000; work in process inventory is $34,000; finished goods inventory is $25,000; and cost of goods sold is $135,000. After adjusting for the overallocated manufacturing overhead, what is cost of goods sold?

The underallocation or overallocation of overhead is a direct result of using a predetermined manufacturing overhead rate rather than the actual manufacturing overhead rate.

Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Manufacturing overhead cost is allocated at the rate of $13 per direct labor hour. What is the amount of allocated manufacturing overhead costs for August?

Missy & Daughters allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year: The company estimates that 1,360 direct labor hours will be worked in the upcoming year, while 1,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour will be

For each of the following statements, determine if manufacturing overhead was: A)underallocated B)overallocated Put the correct letter on the line in front of each statement. ____ cost of goods sold is increased ____ actual manufacturing overhead is less than allocated manufacturing overhead ____ cost of goods sold is decreased ____ actual manufacturing overhead is more than allocated manufacturing overhead

Management can use job cost information to help to determine how it will deal with pricing pressure from competitors.

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 hours as the allocation base, what would the allocated manufacturing overhead be for the year?

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning finished goods inventory?

Job costing systems accumulate the costs for each individual job.

Under which of the following situations is raw materials inventory credited and work in process inventory debited?

Manufacturing overhead is overallocated if the amount

Which of the following industries would be most likely to use a job costing system?

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 hours as the allocation base, what would the predetermined manufacturing overhead rate be?

A labor time record identifies the employee and the amount of time the employee spent on a particular job.

If manufacturing overhead allocated is less than the actual manufacturing overhead incurred, then jobs have been overcosted.

The cost of indirect labor used in the factory is recorded as a

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company: Additional data:1)Actual manufacturing overhead for January amounted to $62,000. 2)Total direct labor cost for January was $63,000. 3)The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs. 4)The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000. 5)Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January. 6)January 31 balance in raw materials inventory was $35,000. "7)Finished goods inventory balance on January 31 was $34,500. What is the cost of goods sold for January?"