Exam 3: Job Costing

A purchase order is used to order needed materials from suppliers.

Weekly Company gathered the following information for the year ended December 31: What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

An equal amount of manufacturing overhead should be allocated to each job.

A labor time record is an essential component of accounting in a service firm.

Here is some basic data for Shannon Company: The journal entry to record the cost of raw materials placed into production involves a

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

If a manufacturer finds that the amount of manufacturing overhead allocated to a job is less than the actual amount of manufacturing overhead incurred, then the jobs are overcosted.

Showboat Corporation had actual manufacturing overhead costs for the most recent year of $30,300. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $2.75 per direct labor hour. Direct labor cost is $28 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $2250. How many direct labor hours were worked in total during the year?

When an item is sold, Finished Goods Inventory account is credited and Cost of Goods Sold is debited.

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning work in process inventory?

Which of the following industries would be most likely to use a job costing system?

For a manufacturer that uses job costing, show the order of the cost flow through the following accounts by numbering them from 1 to 4. ________ finished goods inventory ________ raw materials inventory ________ cost of goods sold ________ work in process inventory

Barefoot Running Company's work in process inventory on June 1 has a balance of $22,900 representing Job No. 265. During June, $50,700 of direct materials were requisitioned for Job No. 265 and $35,500 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 130% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,300. No new jobs were started during June. Job No. 265 is completed on June 28. Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Additional data: 1) Actual manufacturing overhead for January amounted to $65,500. 2) Total direct labor cost for January was $64,000. 3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $255,000 of direct labor cost and $382,500 of manufacturing overhead costs. 4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $6100 (1700 direct labor hours)and total direct material charges were $15,000. 5) Cost of direct materials placed in production during January totaled $123,900. There were no indirect material requisitions during January. 6) January 31 balance in raw materials inventory was $35,400. 7) Finished goods inventory balance on January 31 was $35,000. Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?

The following information was gathered for the Falsetto Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. Compute: a)Predetermined manufacturing overhead rate b)Manufacturing overhead allocated for the year c)Amount of over/underallocated overhead at the end of the year

Service firms develop a predetermined rate for some costs. This rate is called the

Job order costing would most likely be used in which of the following companies:

The following account balances at the beginning of January were selected from the general ledger of Bluestone Industries: Additional data: 1. Actual manufacturing overhead for January amounted to $80,500. 2. Total direct labor cost for January was $70,000; actual direct labor hours for January were 4,200. 3. The predetermined manufacturing overhead rate is based on direct labor hours. The budget for the year called for $350,000 of direct labor cost and $425,000 of manufacturing overhead costs. Estimated direct labor hours for the year were expected to be 20,000. 4. The only job unfinished on January 31 was Job No. 449, for which total direct labor charges were $22,000 (1,200 direct labor hours)and total direct material charges were $17,600. 5. Cost of direct materials placed in production during January totaled $129,500. There were no indirect material requisitions during January. 6. January 31 balance in raw materials inventory was $30,000. 7. Finished goods inventory balance on January 31 was $44,700. Required: a)Determine the predetermined manufacturing overhead rate. b)Determine the amount of materials purchased during January. c)Determine cost of goods manufactured for January. d)Determine the work in process inventory balance on January 31. e)Determine cost of goods sold for January. f)Determine whether manufacturing overhead is overallocated or underallocated and by what amount at Jan. 31.

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

Manufacturing overhead costs cannot be directly traced to jobs.