Exam 3: Job Costing

Wet N Wild Sports Equipment Company's work in process inventory on June 1 has a balance of $22,400 representing Job No.265.During June,$50,000 of direct materials were requisitioned for Job No.265 and $35,000 of direct labor cost was incurred on Job No.265.Manufacturing overhead is allocated at 125% of direct labor cost.Actual manufacturing overhead costs incurred in June amounted to $41,000.No new jobs were started during June.Job No.265 is completed on June 28. What is the total cost assigned to Job No.265?

At a manufacturing company,inventory flows from work in process inventory,to raw materials inventory,to finished goods inventory.

The entry to transfer sold goods includes a debit to the Finished Goods Inventory account.

Twinkle Ornaments Company uses job costing.Twinkle Ornaments Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available: Actual data for completed Job No.650 is as follows: What is the predetermined manufacturing overhead rate for the Trimming Department?

Calculate the unknowns for the following independent situations. 1.Selected data for Lion Corporation: Allocated manufacturing overhead is based on 50% of direct labor cost. a.Calculate the allocated manufacturing overhead cost. b.Calculate the direct labor cost. 2.Selected data for Tiger Corporation: Manufacturing overhead is allocated at $15 per machine hour. a.Calculate the allocated manufacturing overhead cost. b.Calculate the number of machine hours incurred.

The law firm of Lyons & Lyons uses a job costing system to accumulate client-related costs.The indirect cost allocation rate is 80% of direct labor cost.Staff time is charged at a rate of $65 per labor hour.A recent job for a client involved 30 staff labor hours by staff lawyers. Compute the cost of the job.

Here is selected data for Lori Corporation: The journal entry to transfer completed goods to the finished goods inventory account would include a

Which of the following would be an example of a typical manufacturing overhead cost?

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

Wet N Wild Sports Equipment Company's work in process inventory on June 1 has a balance of $22,400 representing Job No.265.During June,$50,000 of direct materials were requisitioned for Job No.265 and $35,000 of direct labor cost was incurred on Job No.265.Manufacturing overhead is allocated at 125% of direct labor cost.Actual manufacturing overhead costs incurred in June amounted to $41,000.No new jobs were started during June.Job No.265 is completed on June 28. Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Guys and Dolls Corporation uses job costing.The following selected financial data from the company is for the most recent year. Compute: a)Beginning raw materials inventory b)Beginning work in process inventory c)Beginning finished goods inventory d)Actual manufacturing overhead costs incurred during the year

For a manufacturer that uses job costing,show the order of the cost flow through the following accounts by numbering them from 1 to 4.

Companies should always use job costing rather than process costing.

Serena Corporation uses estimated manufacturing overhead costs of $880,000 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates.Allocated manufacturing overhead was $1,012,000 and actual manufacturing overhead was $970,000.What were the number of actual direct hours worked?

When a job is completed,the journal entry involves a:

Squire Corporation charged Job 110 with $13,400 of direct materials and $11,900 of direct labor.Allocation for manufacturing overhead is 75% of direct labor costs.What is the total cost of Job 110?

In job costing,when raw materials are requisitioned for a job,the Raw Materials Inventory account is credited.

Stars and Stripes Corporation uses job costing.The following is selected financial data from the company for the most recent year. Compute: a)Beginning raw materials inventory b)Beginning work in process inventory c)Beginning finished goods inventory d)Actual manufacturing overhead costs incurred during the year

Manufacturing overhead would include

The journal entry needed to record the completion of a job includes a