Exam 19: Job Order Costing

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. What rate would Fogelin use for allocating the cost of its office and administrative staff?

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: After recording all these transactions and adjusting for the over/underallocated overhead, the ending balance in the Cost of Goods Sold account is a:

The accounts of Delphinia Dreams Inc. showed the following balances at the beginning of October: During the month, direct materials amounting to $20,000 and indirect materials amounting to $5,000 was issued to production. What is the ending balance in the Work-in-Process Inventory account for the month of October?

Sybil Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 12 machine hours and 3 direct labor hours. The predetermined overhead allocation rate is calculated to be $45 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

Which of the following accounts would be debited in the journal entry to record the requisition of direct materials?

The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.

Which of the following is true due to the advent of ERP systems?

On January 1, 2015, Jackson Company's Work-in-Process Inventory account showed a balance of $65,000. During 2015, materials requisitioned for use in production amounted to $70,000 of which $66,000 represented direct materials. Factory wages for the period were $209,000 of which $186,400 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,440. Jobs costing $353,240 were completed during 2015. The December 31, 2015, balance in Work-in-Process Inventory is:

Iva Machine Shop uses a predetermined overhead allocation rate of $75 per direct labor hour. In January, Iva completed Job B23 which utilized 20 direct labor hours. Provide the journal entry to allocate overhead to the job.

The entry to record the purchase of direct materials on account would include a:

The direct labor costs are assigned to individual jobs, and the total direct labor amount is recorded with a debit to Work-in-Process Inventory.

Adelphia Manufacturing issued $80,000 of direct materials and $10,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction?