Exam 3: Job Costing

Overallocated and underallocated manufacturing overhead is calculated by comparing allocated manufacturing overhead to estimated manufacturing overhead.

Before the year began, Plastics Manufacturing estimated that manufacturing overhead for the year would be $150,400 and that 25,200 direct labor hours would be worked. Actual results for the year included the following: If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been (Round intermediary calculations to the nearest cent.)

A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to each individual job.

A production schedule always covers a one-year period of time.

Boulder Corporation uses estimated direct labor hours of 200,200 and estimated manufacturing overhead costs of $920,600 in establishing manufacturing overhead rates. Actual manufacturing overhead was $970,300, and allocated manufacturing overhead was $1,012,100. What was the number of actual direct hours worked? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

Manufacturers follow four steps to implement a manufacturing overhead allocation system. In the last step, the company estimates the total amount of manufacturing overhead costs for the year.

The journal entry needed to record the completion of a job includes a

If a job consists of a batch of identical units, how can managers find the unit cost?

The gross profit on the sale of a job is the difference between the sales price and the total unit cost reported on the job cost record.

The overhead allocation base should be the cost driver of manufacturing overhead costs.

Stanley Company uses a job cost system. Manufacturing overhead has been overallocated by $6300 for the year. Actual overhead incurred was $105,700. Other balances are: What will adjusted cost of goods sold be after closing manufacturing overhead?

Companies use job costing when their products or services vary in terms of materials needed, time required to complete the product, and/or the complexity of the production process.

Wavy Company had a beginning work in process inventory balance of $32,600. During the year, $54,600 of direct materials was placed into production. Direct labor was $63,900, and indirect labor was $20,300. Manufacturing overhead is allocated at 140% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,500 were completed during the year. What is the ending work in process inventory balance?

Here are selected data for Creek Corporation: What is the balance in work in process inventory at the end of the year?

At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory.

Here are selected data for Boston Bracing Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

When a job is completed, the journal entry involves a:

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

Showboat Corporation had actual manufacturing overhead costs for the most recent year of $30,400. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $3.25 per direct labor hour. Direct labor cost is $26 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $1850. How much manufacturing overhead was allocated in total during the year?

A manufacturer of plywood would use what type of product costing system?