Exam 19: Job Order Costing

Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. Bilkins has 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $754,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets organized by the client number. Office and administrative costs total $576,000 a year. Bilkins allocates professional time and office 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? (Round your intermediate calculations to two decimal places)

The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory account and a credit to the Cost of Goods Manufactured account.

At the beginning of 2014, Conway Manufacturing had the following account balances: Following additional details are provided for the year: Record these transactions in the T-accounts and calculate the ending balances for Work-in-Process Inventory, Finished Goods Inventory, and Manufacturing Overhead accounts (unadjusted.)

Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system.

Davie Company used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,000,000 in establishing its 2015 predetermined overhead allocation rate. Actual results showed: What was the number of direct labor hours worked during 2015?

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

Jorst Manufacturing began business on January 1, 2014. During its first year of operation, Jorst worked on 5 industrial jobs, and reported the following information at year-end: 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 2014?

Jezebel Company completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below: What is the cost per unit of finished product produced under Job 12?

Olympia Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of 2014, Olympia estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2014, Job 511 was completed. Job stats are as follows: What is the amount of manufacturing overhead costs allocated to Job 511?

When goods are transferred from the Finished Goods Inventory account to the Cost of Goods Sold account, the product costs move from the balance sheet to the income statement.

Which of the following will be categorized as a manufacturing overhead cost?

The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year which resulted in loss of property including the accounting records. Some data for the year were retrieved and extracts from it are shown below: The company bases its manufacturing overhead allocation on number of machine hours. What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round your intermediate calculations to two decimal places)

Dora Travel Services provided the following information: Cost allocation rate for direct labor: $80 per hour Cost allocation rate for indirect costs: $15 per direct labor hour If Dora receives $1,600 for a job requiring 8 hours of direct labor, then Dora will make a profit of $440.

The cost of indirect materials is transferred out of the Manufacturing Overhead account and accumulated in the Raw Materials Inventory account.

For a service company, such as an accounting firm, each client is considered a job.

Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor cost. The predetermined overhead allocated during the year is $270,000. The details of production and costs incurred during the year are as follows: What is the predetermined overhead allocation rate applied by Doric?

Which of the following statements is true?

Irene Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of 2014, Irene estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2014, Job 711 was completed. Job stats are as follows: How much was the cost per unit of finished product?

When job order costing is used in the service industry, the allocation of indirect costs is normally based on machine hours.

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: The unadjusted balance in the Manufacturing Overhead account is a: