Exam 3: Job Costing

Omega Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No.36.During June,$68,900 of direct materials were requisitioned for Job No.36 and $5,500 of direct labor cost was incurred on Job No.36.Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour.Actual manufacturing overhead costs incurred in June amounted to $15,000.There were 825 actual direct labor hours worked in June.No new jobs were started during June.Job No.36 is completed on June 28. a.Determine the total cost assigned to Job No.36. b.Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Venus Crates manufactures custom crates for a variety of uses.The following data have been recorded for Job 551,which was recently completed.Direct materials used cost $7,200.There were 82 machine hours used on this job.The predetermined overhead rate is $30 per machine hour used.There were 175 direct labor hours worked on this job at a direct labor wage rate of $24 per hour. What is the total manufacturing cost of Job 551?

Which product costing system would better account for a unique product?

The most significant cost for a service company is

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

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 cost of goods manufactured for January?

In the basic flow of inventory through a manufacturing system,which of the following occurs last in the job costing system?

The total cost of a job shown on the job cost record is the sum of the direct materials and direct labor traced to the job and the manufacturing overhead allocated to the job.

The Manufacturing Overhead account is credited for actual manufacturing overhead costs incurred during the period.

The journal entry needed to record the receipt of a factory utility bill would include a

Sales revenue is $725,000;allocated manufacturing overhead is $95,000;actual manufacturing overhead is $120,000;and cost of goods sold before adjustment is $380,000.What is the actual gross profit?

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 Finishing Department?

The main driver of indirect costs for service firms is usually labor hours.

Underallocated manufacturing overhead results when

At a service company,the indirect costs of serving the client include manufacturing overhead.

Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a

The amount of overallocation or underallocation should be reflected as an adjustment to cost of goods sold under what circumstances?

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The last step is

London Ceramics makes custom ceramic tiles.During March,the company started and finished Job #266.Job #266 consists of 2,500 tiles;each tile sells for $12.00.The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2,500 units at $4.00 per unit Specialty paint: 5 quarts at $7.00 per quart High gloss glaze: 4 quarts at $12.00 per quart Labor time records show the following employees worked on Job #266: Alice Cooper: 18 hours at $24 per hour Matthew Kline: 20 hours at $13 per hour Sierra Ceramics allocates manufacturing overhead at a rate of $27 per direct labor hour. What is the gross profit per tile on Job #266?

Hurley Enterprises uses job costing.Actual overhead for the year was $494,500.The allocated Overhead was $523,500.What is the balance in the manufacturing overhead account?