Exam 3: Job Costing

Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below: a)Determine the predetermined manufacturing overhead rate for the Drilling Department. b)Determine the predetermined manufacturing overhead rate for the Cutting Department. c)Determine the balances of the manufacturing overhead accounts for each department as of April 30. Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.

Generally accepted accounting principles (GAAP)mandate that manufacturing overhead must be treated as an inventoriable product cost for financial reporting purposes.

In job costing, when indirect materials are requisitioned for a job, the raw materials inventory account is credited.

Federer 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 Federer Company uses direct labor cost as the allocation base, what would the allocated manufacturing overhead be for the year?

When using cost-plus pricing, the markup is added to the job cost to help

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 manufactured for January?"

________ laws , or "take-back" laws, create future costs associated with each job and require manufacturers of electronic devices to take back their products at the end of their useful lives.

An internal request for raw materials calls for a ________ to be completed.

Which of the following entries would be made to record $20,000 of labor-80% of which is direct, and 20% of which is indirect- to jobs?

A manufacturer of plywood would use what type of product costing system?

The cost of direct labor used in production is recorded as a

When raw materials are transferred out of the storeroom to the factory, their cost is transferred out of raw materials inventory and into work in process inventory.

The predetermined manufacturing overhead rate is calculated by dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Alpha Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No. 72. During June, $68,900 of direct materials were requisitioned for Job No. 72 and $5,500 of direct labor cost was incurred on Job No. 72. Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour. Actual manufacturing overhead costs incurred in June amounted to $15,000. There were 700 actual direct labor hours worked in June. No new jobs were started during June. Job No. 72 is completed on June 28. a)Determine the total cost assigned to Job No. 72. b)Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

How is the cost of direct materials used in production recorded?

The journal entry to record $300 of depreciation expense on factory equipment involves a

Management can use job cost information for each of the following except

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Peterson Company gathered the following information for the year ended December 31: Peterson Company uses a job costing system. What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to estimate the total amount of manufacturing overhead costs for the year.