Exam 19: Job Order Costing

When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited.

Caltran Company completed manufacturing Job 445. It included $320 of direct materials cost, $1,240 of direct labor cost, and $560 of allocated overhead. Which of the following is the correct journal entry needed to record the completed job?

Pandora Manufacturing purchased $95,000 of raw materials on account and $5,000 raw materials for cash. The materials will be used to produce furniture. Provide the journal entry for the purchase of materials.

On January 1, 2014 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. Additionally, the following transactions occurred during the year: 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 final balance in the Cost of Goods Sold account?

Happy Clicks Inc. uses a predetermined overhead allocation rate of $4.75 per machine hour. Actual overhead costs incurred during the year are as follows: What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

Unlike manufacturing companies, service companies use an allocation base for allocating both direct and indirect costs.

Jorst Manufacturing began business on January 1, 2015. During its first year of operation, Jorst worked on five industrial jobs and reported the following information at year-end: At year-end, what was the balance in Work-in-Process Inventory?

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours. It has provided the following information for the year 2014: Based on the above information, calculate the manufacturing overhead rate applied by Felton.

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 direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round your intermediate calculations to one decimal place)

Manufacturing Overhead is a temporary account used to accumulate indirect production costs.

On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below. During June, the following transactions took place: June 2: Issued $2,400 of direct materials and $200 of indirect materials to production Following this transaction, what was the balance in the Manufacturing Overhead account?

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account:

On June 30, Cleopatra Company finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory. On July 6, Cleopatra completed the sale of the goods to a customer for $55,000 on account. Provide the entry to record the cost of goods sold.

The journal entry for adjustment of underallocated manufacturing overhead includes a:

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. The manufacturing overhead costs will be allocated based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed Job A33, which used 60 machine hours and 15 direct labor hours. What was the amount of manufacturing overhead allocated to job A33? (Round your intermediate calculations to one decimal place)

On June 30, Cleopatra Company finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory. On July 6, Cleopatra completed the sale of the goods to a customer for $55,000 on account. Provide the journal entry to record the sales revenue.

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% of the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as follows: What is the total cost incurred for Job 13C?

Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to be $800,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 10,000 hours, respectively. What is the predetermined overhead allocation rate?

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 up to $800,000 per year, and they normally have about 3,200 billable hours per year. Professional staff keeps detailed time sheets organized by client number. The office and administrative costs total $240,000 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 50 hours on their client, Soupy Sales. Bilkins adds a 30% markup on their costs to calculate the amount billed to the customer. How much gross profit did Bilkins earn from Soupy Sales in July?

Alexandra's Designs, a fashion boutique, incurred the following in the month of September: What is the journal entry to record the total labor charges incurred during September?