Exam 17: Job Order and Process Costing

At the end of the year, Martin Company has a preliminary credit balance in the Manufacturing overhead account of $95. Please provide the year-end adjusting entry needed to clear the balance to zero.

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 liters of partially processed product in production. During January, 32,000 liters were transferred in from the Mixing Department and 29,000 liters were completed and transferred out. At the end of the month, there were 5,000 liters of partially processed product remaining in the Refining Department. See additional details below. Refining Department, beginning balance at January 1, 2012 Quantity: 2,000 units (partially processed) Cost: \ 15,600 of costs transferred in \ 1,900 of materials cost \ 4,500 of conversion cost \ 22,000 total account balance Costs added during January Cost of units transferred in: \ 222,400 Direct materials cost \ 45,000 Conversion cost \ 93,750 $\text { Refining Department, ending balance at January } 31,2012$ Quantity: 5,000 units (partially processed) \% completion for materials cost: 90\% \% completion for conversion cost: 75\% - Please perform a process costing analysis and answer the following question: For the Refining Department in the month of January, what was the total cost of ending inventory? (Please round to nearest whole dollar.)

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place: June 2: Issue $2,400 of direct materials and $200 of indirect materials to production. - Following this transaction, what was the balance in the Manufacturing overhead account?

Jorst Manufacturing Company began business on January 1, 2012. During its first year of operation, Jorst worked on 5 industrial jobs, and reported the following information at year-end: Job 1 Job 2 Job 3 Job 4 Job 5 Direct Materials 1,00 7,500 4,000 3,500 1,500 Direct Labor 12,00 20,000 13,000 12,000 800 Allocated Mfg. Overhead 1,500 6,000 2,500 7,500 200 Job completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed Job sold: Jul 10 Sep 12 Not sold Not sold N/A Revenues: 25,000 39,000 N/A N/A N/A - Jorst's allocation of overhead costs left a debit balance of $1,200 in the Manufacturing overhead account which was adjusted to zero at year-end. What was the amount of gross profit earned in 2012?

On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and transferred the costs to Finished goods. On July 6, they completed the sale of the goods to a customer for $5,100 cash. In order to record the sale, two entries are necessary, one to record revenue, and one to record cost of goods sold. Which of the following is the correct entry needed to record the revenues?

Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754,000 a year. - Bilkins allocates professional time and administrative costs to clients monthly, using allocation rates based on billable hours. During July, Bilkins' professionals spent 36 hours on their client, Soupy Sales. What is the total amount of cost that Bilkins will record for the client for the month?

Darrius Travel Services provided the following information: Cost allocation rate for direct labor: $40 per hour Cost allocation rate for indirect costs: $22 per hour Darrius is negotiating a job with a new client. The job will require 10 hours of direct labor. If Darrius wishes to make at least 15% gross profit on the deal, they need to receive $713 of revenues.

Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Fogelin has 4 public relations specialists, plus an office staff. At the beginning of 2012, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403,200, and a total of 7,200 billable hours for the year. All remaining office and administrative costs were estimated at $676,800. What rate would Fogelin use for the cost of its office and administrative staff?