Exam 5: Job-Order Costing

The journal entry for $17,000 materials purchased on account is:

Consider two costing systems, normal costing and actual costing.

What account is credited when goods are sold?

A company has two departments that all goods pass through, machining and assembly. Machining overhead is applied based on machine hours and assembly overhead is applied based on direct labor hours. Data on each department is as follows:

Firms in the ____ business are most likely to use a process-costing system.

Figure 5-9.Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: -Refer to Figure 5-9. Calculate the Ending Balance of Raw Materials.

Labor cost flows reflect

Match each item with the correct statement below. Answers may be used more than once. -Every time a new job is started this is prepared.

A __________________________ is used by the cost accounting department to enter the cost of direct materials onto the correct job-order cost sheet.

McElligott Doll Company had the following overhead costs and production for two months. The dolls are identical to each other.

A(n) ___________________________ determines unit cost by adding actual direct materials, actual direct labor, and estimated overhead.

In job-order costing, the journal entry for $7,200 raw materials requisitioned for use in production is:

Figure 5-4.Hill Company uses job-order costing. At the end of the month, the following data was gathered: Hill's selling price is cost plus 50% for each of its products. -Refer to Figure 5-4. What is Cost of Goods Sold for the month?

Budgeted overhead is $60,000, budgeted direct labor hours are 3,000, actual overhead is $64,000, and direct labor hours are 3,230. Unadjusted cost of goods sold is $135,670.

Ending Work-in-Process for Lee's Carpentry was $64,000 for January. Direct labor and direct materials together for the month were $39,000. Direct labor was twice as much as direct materials. The overhead rate is 70% of direct labor. No jobs were finished during the month. What was beginning Work-in-Process?

costs of product are removed from finished goods and added to cost of goods sold

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company: Job 101 was sold on account on August 25 for 160% of its cost. Required:

Figure 5-5.Brillant Design Company makes custom chairs for individual customers. On October 1, there was one job in process, Job 243, with a cost of $1,300. Jobs 244, 245, and 246 were started during the month of October. Data on costs added during the month are as follows: Overhead is applied to production at the rate of 70% of direct labor cost. Job 245 was completed on October 14 and the client was billed at cost plus 55%. All other jobs remained in process. -Refer to Figure 5-5. Calculate the balance in Work-in-Process on October 31.

Figure 5-14 Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows: Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process. -Refer to Figure 5-14 Required: A.) The actual overhead for December was $41,100, calculate the variance. B.) Calculate the sales price for Job #684. C.) Calculate the adjusted cost of goods sold for the month of December. D.) If selling and administrative expenses for the month totaled $5,600, what is the company's operating income for December?

_________________ is found by multiplying the predetermined overhead rate by the actual use of the associated activity for the period.