Exam 3: Job Costing

For each of the following statements, determine if manufacturing overhead was: A)Underallocated B)Overallocated Put the correct letter on the line in front of each statement. ________ Cost of goods sold is increased ________ Actual manufacturing overhead is less than allocated manufacturing overhead ________ Cost of goods sold is decreased ________ Actual manufacturing overhead is more than allocated manufacturing overhead

How is the cost of direct materials used in production recorded?

An example of an industry that uses process costing might be a

A job costing system can be used by which types of companies?

George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. The estimates were made as of the beginning of the year, while the actual results were for the entire year. The amount of manufacturing overhead allocated for the year based on machine hours would have been (Round intermediary calculations to the nearest cent.)

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. What amount of manufacturing overhead would be allocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

A bill of materials indicates

The quantities of incoming shipments of raw materials are counted and recorded on a purchase order.

The law firm of Lyons & Lyons uses a job costing system to accumulate client-related costs. The indirect cost allocation rate is 80% of direct labor cost. Staff time is charged at a rate of $65 per labor hour. A recent job for a client involved 30 staff labor hours by staff lawyers. Compute the cost of the job.

The cost of indirect materials used in production is credited to

Job costing should only be used by manufacturers.

Actual manufacturing overhead costs are accumulated as debits to a single general ledger account called Manufacturing Overhead.

If manufacturing overhead has been underallocated during the period, then which of the following is true?

Here are selected data for Crumb Company: Manufacturing overhead is allocated at 70% of direct labor cost. What was the amount of direct labor costs?

For each of the following statements, determine if it would be handled: A)Before the period B)During the period C)At the end of the period Put the correct letter on the line in front of each statement. ________ Calculate the amount of overallocated or underallocated manufacturing overhead. ________ Compute the predetermined manufacturing overhead rate. ________ Adjust cost of goods sold for the amount of overallocated or underallocated manufacturing overhead. ________ Allocate the manufacturing overhead costs.

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

If a job consists of a batch of identical units, managers find the unit cost by dividing the total job cost by the number of units in the job.

The bill of materials lists all of the raw materials needed to manufacture the job.

Manufacturing overhead has an underallocated balance of $12,400; raw materials inventory balance is $145,500; work in process inventory is $122,800; finished goods inventory is $140,300; and cost of goods sold is $170,500. After adjusting for the underallocated manufacturing overhead, what is cost of goods sold?