Exam 19: Job Order Costing

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

A process costing system is used when a company produces identical units through a series of production steps.

Uniq Works purchased raw materials amounting to $125,000 on account and $15,000 for cash. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which of the following journal entries correctly records this transaction?

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 2014, 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. The office and administrative costs were estimated at $676,800. The allocation base for office and administrative costs is billable hours. A new client is contracting with Fogelin to promote a ballet tour in the U.S. Fogelin estimates that the job will require 40 billable hours of specialist time. If Fogelin wishes to make a 25% gross profit on the job, what price should Fogelin quote to the client?

Arabica Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of 2015, Arabica estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2015, Arabica completed Job 511. Job stats are as follows: How much was the total job cost of Job 511?

Cost accounting systems are used:

At the end of the year, Delta Company has an unadjusted debit balance in the Manufacturing Overhead account of $3,950. Provide the year-end adjusting entry needed to clear the balance to zero.

At January 1, 2015, Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $80,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred: Job A-12 was completed for a total cost of $120,000 and was sold for $125,000. Job A-13 was completed for a total cost of $200,000 and was sold for $210,000. Job A-15 was completed for a total cost $60,000, but was not sold as of year-end. At the end of the year, what was the balance in Finished Goods Inventory?

On June 30, Coral Company finished Job 750, with total job costs of $4,600, and transferred the costs to Finished Goods Inventory. 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 journal entry to record the cost of goods sold?

At January 1, 2015, Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $80,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred: Job A-12, was completed for a total cost of $120,000, and was sold for $125,000. Job A-13, was completed for a total cost of $200,000, and was sold for $210,000. Job A-15, was completed for a total cost $60,000, but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $12,000, and was cleared to zero at year-end. What was the amount of gross profit reported by Feldstein at the end of the year?

The accounts of Melissa Manufacturing showed the following balances at the beginning of December: The following transactions took place during the month: December 2: Issued direct materials $25,000 and indirect materials $4,000 to production. December 15: Paid $6,000 and $3,000 toward factory's direct labor cost and indirect labor cost, respectively. What should be the balance in the Work-in-Process Inventory account at the end of December?

At the end of the year, Martin Company has an unadjusted credit balance in the Manufacturing Overhead account of $95. Provide the year-end adjusting entry needed to clear the balance to zero.

Halcyon Company completed Job 10B last month. The cost details of Job 10B are shown below: Calculate the total job cost for Job 10B.

Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.

At the beginning of 2014, Conway Manufacturing had the following account balances: Following additional details are provided for the year: The remaining balance of Manufacturing Overhead was cleared to zero. Calculate the ending balances in Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead (unadjusted), and Cost of Goods Sold (after adjustment.)

Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the year?

On January 1, 2015, Frederic Manufacturing had a beginning balance in Work-in-Process Inventory of $160,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Frederic incurred manufacturing costs of $200,000. During the year, the following transactions occurred: Job C-62 was completed for a total cost of $140,000 and was sold for $155,000. Job C-63 was completed for a total cost of $180,000 and was sold for $210,000. Job C-64 was completed for a total cost $80,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $24,000, and was cleared to zero at year-end. What was the final balance in the Cost of Goods Sold account?

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves debit(s)to the:

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 2014, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $676,800, and a total of 7,200 billable hours for the year. The office and administrative costs were estimated at $403,200. The allocation base for office and administrative costs is billable hours. In June, Fogelin signed a contract for a Russian ballet performance. They negotiated a price of $6,400 for their services. When the job was complete, Fogelin's records showed that they had logged 36.50 billable hours. What was the actual total cost of the job for Fogelin?

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.