Exam 3: Job Costing

The Polish Factory manufactures natural resources in Ireland.At the beginning of 20XX,the accountant provided the following estimates associated with Department A and Department B for the coming year: According to the reports provided by the manager at the Polish Factory,the following data was presented to represent a job that was completed during the year: Assume that the Polish Factory uses departmental cost driver rates to allocate manufacturing overhead to products.The manufacturing overhead costs are allocated on the basis of machine-hours in Department A on the basis of direct labor-hours in Department B.First,compute the annual manufacturing cost-allocation rate for Department A.What are the total manufacturing costs associated with the job and what is the amount the manager at the Polish Factory should allocate to the job?

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

Here is some basic data for Delta Manufacturing: The journal entry to record actual manufacturing overhead costs includes a

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the actual manufacturing overhead?

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

Before the year began,Coia Manufacturing estimated that manufacturing overhead for the year would be $200,000 and that 25,000 direct labor hours would be worked.Actual results for the year included the following: If the company allocates manufacturing overhead based on direct labor hours,the manufacturing overhead for the year would have been

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 predetermined manufacturing overhead rate?

The difference between the sales price and the job cost is

The cost of indirect labor used in the factory is recorded as a

Job costing should only be used by manufacturers.

The following information was gathered for the Falsetto Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. Compute: a)Predetermined manufacturing overhead rate b)Manufacturing overhead allocated for the year c)Amount of over/underallocated overhead at the end of the year

If manufacturing overhead has been underallocated during the year,it means the jobs have been undercosted.

A ________ is used to accumulate the costs of a job.

On the line in front of each statement,enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named.

Manufacturing overhead has an underallocated balance of $6,200;raw materials inventory balance is $50,000;work in process inventory is $30,000;finished goods inventory is $20,000;and cost of goods sold is $100,000.Which of these accounts would have an ending credit balance?

Here are selected data for Wilson Company: If the company allocates manufacturing overhead based on direct labor cost,what are the allocated manufacturing overhead costs?

Nadal 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 Nadal Company uses direct labor cost as the allocation base,what would the predetermined manufacturing overhead rate be?

Overallocated manufacturing overhead results when

When job costing is used at a service company,direct costs of serving the client are traced to the job,whereas the indirect costs of serving the client are allocated to the job.