Exam 19: Job Order Costing

The Goods in Process Inventory account for AB Manufacturing follows.Compute the cost of jobs completed and transferred to Finished Goods Inventory. The cost of units transferred to finished goods is:

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

M.A.E.charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process,$60,000 to jobs completed but not sold,and $120,000 to jobs finished and sold.At year-end,M.A.E.Company's Factory Overhead account has a credit balance of $5,000,which is not a material amount.What entry should M.A.E.make at year-end?

The Terrapin Manufacturing Company has the following job cost sheets on file.They represent jobs that have been worked on during June of the current year.This table summarizes information provided on each sheet: (a)What is the cost of the goods in process inventory on June 30? (b)What is the cost of the finished goods inventory on June 30? (c)What is the cost of goods sold for the month of June?

A system of accounting for production operations that produces timely information about inventories and manufacturing costs per unit of product is a:

The collection of job cost sheets for all jobs in process makes up the subsidiary ledger controlled by the _____________________ inventory.

A company uses a job order cost accounting system and applies overhead on the basis of direct labor cost.A summary of the company's Goods in Process Inventory account for December appears below. Fill in the blanks for the following: (1)The total cost of the direct materials,direct labor,and factory overhead applied in the December 31 goods in process inventory is $_______________________. (2)The company's overhead application rate is __________________% (3)Job No.6 had $26,550 of direct labor cost.Therefore,the job must have had $________ of direct materials cost. (4)Job No.8 had $73,998 of direct materials cost.Therefore,the job must have had $________ of factory overhead cost.

A company's predetermined overhead allocation rate is 130% based on direct labor cost.How much overhead would be allocated to Job No.105 if it required total direct labor costs of $60,000?

The predetermined overhead allocation rate is used to allocate overhead cost to jobs.

Job order production systems would be appropriate for companies that produce compact disks or disposable cameras.

A company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods in Process Inventory.

A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May.Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

At the end of June,the job cost sheets for Monson Manufacturing show the following total costs accumulated on three custom jobs. Job 203 was started in production in May and the following costs were assigned to it in May: direct materials,$12,000; direct labor,$6,000; and overhead $8,700.Jobs 204 and 205 are started in June.Overhead cost is applied with a predetermined rate based on direct labor cost.Jobs 203 and 204 are finished in June,and Job 205 will be finished in July.No raw materials are used indirectly in June.Using this information,answer the following questions assuming the company's predetermined overhead rate did not change. a.What is the cost of the raw materials requisitioned in June for each of the three jobs? b.How much direct labor cost is incurred during June for each of the three jobs? c.What predetermined overhead rate is used during June? d.How much total cost is transferred to finished goods during June?

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

In comparison to a general accounting system for a manufacturing company,a cost accounting system places an emphasis on:

When materials are used as indirect materials,their cost is debited to the Factory Overhead account.

The following calendar year information about the Tahoma Corporation is available on December 31: The company applies overhead on the basis of 125% of direct labor costs.Calculate the amount of over- or underapplied overhead.

Docksider Boats uses a job order cost accounting system.During one month Docksider purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect.Docksider incurred a factory payroll of $95,000,paid in cash,of which $25,000 is classified as indirect labor.Docksider uses a predetermined overhead application rate of 170% of direct labor cost.The journal entry to record the application of factory overhead to production is:

Bard Manufacturing uses a job order cost accounting system.During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Bard incurred a factory payroll of $150,000,paid in cash,of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% of direct labor cost.Bard's beginning and ending Goods in Process Inventory are $15,500 and $27,000 respectively.Compute the cost of product transferred to Finished Goods Inventory:

Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.