Exam 3: Job Costing

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 2100 direct labor hours will be worked in the upcoming year, while 2700 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to

The two basic types of costing systems are

Job 365 has a total cost of $29,400. The rate is 75% of direct labor. It has been charged manufacturing overhead costs of $7700. What was the amount of direct materials charged to the job?

The cost of direct labor used in production is recorded as a

On the line in front of each statement, enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named. ________ direct labor was incurred on a job: Work-in-Process Inventory account ________ indirect labor was incurred: Wages Payable account ________ indirect labor was added to a job: Manufacturing Overhead account ________ direct labor was incurred: Wages Payable account

A ________ is used to accumulate all of the direct materials and direct labor used on the job, as well as the manufacturing overhead allocated to the job.

A ________ is a source document used to track employee hours.

Which of the following is most likely not to use process costing?

Nadal Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are as follows: What is the manufacturing cost of Job 532?

On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. ________ a bill from a supplier ________ a list of all of the raw materials needed to manufacture a job ________ system for assigning costs to a specific unit or to a small batch of products or services that pass through production steps as a distinct identifiable job ________ a written or electronic document authorizing the purchase of specific raw materials from a specific supplier ________ system for assigning costs to large numbers of identical units that usually proceed in a continuous fashion through a series of uniform production steps or processes ________ a written or electronic document that requests specific materials be transferred from the raw materials inventory storeroom to the production floor ________ a written or electronic document listing the quantity and type of raw materials received in an incoming shipment ________ a primary factor that causes a cost ________ a written or electronic document that lists the direct materials, direct labor, and manufacturing overhead costs assigned to each individual job ________ a written or electronic document that identifies the employee, the amount of time spent on a particular job, and the labor cost charged to a job

Sykes Company has sales revenue of $585,100. Cost of goods sold before adjustment is $335,500. The company's actual manufacturing overhead is $91,700, while allocated manufacturing overhead is $105,400. What is the actual gross profit?

At Plastastic, Inc., the beginning balance of the work in process inventory account in April of the most recent year was $19,000. Direct materials used during April totaled $130,000. Total manufacturing labor incurred in April was $180,000, 75% of this amount represented direct labor. The predetermined manufacturing overhead rate is 130% of direct labor cost. Actual manufacturing overhead costs for April amounted to $160,000. In April, two jobs were completed with total costs of $110,000 and $95,000, respectively. In April, the two jobs were sold on account for $187,000 and $124,000, respectively. a. Compute the balance in work in process inventory on April 30. b. Record the journal entry for direct materials used in April. c. Record the journal entry to record labor costs for April. d. Record the journal entry for allocated manufacturing overhead for April. e. Record the entry to move the completed jobs into finished goods inventory in April. f. Record the entry to sell the two completed jobs on account in April.

In job costing, the journal entry to record the use of direct materials on jobs is to debit Work-in-Process Inventory account and credit

When using cost-plus pricing, the markup is added to the job cost to help

Manufacturers follow four steps to implement a manufacturing overhead allocation system. In the last step, to the company allocates some manufacturing overhead to each individual job.

If manufacturing overhead has been overallocated during the year, it means the jobs have been overcosted.

Alpha Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No. 72. During June, $68,900 of direct materials were requisitioned for Job No. 72 and $5,500 of direct labor cost was incurred on Job No. 72. Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour. Actual manufacturing overhead costs incurred in June amounted to $15,000. There were 700 actual direct labor hours worked in June. No new jobs were started during June. Job No. 72 is completed on June 28. a. Determine the total cost assigned to Job No. 72. b. Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred.

The entry to transfer sold goods includes a debit to the Finished Goods Inventory account.

Here is some basic data for Bella Company: The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of