Exam 5: Systems Design: Job-Order Costing

What is the cost of goods manufactured for March?

How much of any underapplied or overapplied overhead would have been due to the fact that the estimated overhead costs were different from the actual?

Which entry transfers the cost of goods manufactured for the period?

Manufacturing overhead is overapplied for the year by $3,000.The unadjusted cost of goods sold is $360,000.Closing manufacturing overhead into cost of goods sold will result in which of the following?

Dotsero Technology,Inc. ,has a job-order costing system.The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs.The predetermined overhead rate in Department A is based on machine hours,and the rate in Department B is based on direct materials cost.At the beginning of the most recent year,the company's management made the following estimates for the year: Job 243 entered into production on April 1 and was completed on May 12.The company's cost records show the following information about the job: At the end of the year,the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year: Required: a. )Compute the predetermined overhead rates for Department A and Department B. b. )Compute the total overhead cost applied to Job 243. c. )Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.

What was the cost of goods manufactured during the year?

(Appendix 5A)If the predetermined overhead rate is based on capacity,by how much was manufacturing overhead for the year over applied or underapplied?

In a job-order costing system,costs are traced to departments and then allocated to units of product using an averaging process.

Arthur Manufacturing Company produces a single product.The controller has asked for your help in preparing a schedule of cost of goods manufactured for the month just ended.The following information is available: 1. )Eleven thousand units were sold at $22 per unit. 2. )Thirteen thousand units requiring one unit each of raw materials were produced. 3. )Raw materials inventory at the beginning of the month was 1,100 units at $4 each. 4. )During the month,two purchases of raw materials were made: Purchase #1: 7,000 units at $5.00 each Purchase #2: 6,000 units at $5.50 each 5. )The company uses the first-in,first-out method of determining raw materials inventories. 6. )The work-in-process inventories were:

When a job is completed and transferred to the finished goods warehouse the journal entry to record this is debit Cost of Goods Sold and credit Work in Process Inventory.

Sweet Company applies overhead to jobs on the basis of 125% of direct labour cost.If Job 107 shows $10,000 of manufacturing overhead applied,how much was the direct labour cost on the job?

What was the actual overhead cost incurred during the month?

(Appendix 5A)What is the predetermined overhead rate based on capacity to 2 decimal places?

Carver Test Systems manufactures automated testing equipment.The company uses a job-order costing system and applies overhead on the basis of machine hours (MH).At the beginning of the year,estimated manufacturing overhead was $1,960,000,and the estimated machine hours was 98,000.Data regarding several jobs at Carver are presented below. By the end of the first month (January),all jobs but RX-115 were completed,and all completed jobs had been delivered to customers except for SL-205. Required: What was the balance in Finished Goods inventory at the end of January?

What is the indirect labour cost?

Allenton Company is a manufacturing firm that uses job-order costing.At the beginning of the year,the company's inventory balances were as follows: The company applies overhead to jobs using a predetermined overhead rate based on machine hours.At the beginning of the year,the company estimated that it would work 31,000 machine hours and incur $248,000 in manufacturing overhead cost.The following transactions were recorded for the year: a. )Raw materials purchased: $411,000. b. )Raw materials requisitioned for use in production: $409,000 ($388,000 direct and $21,000 indirect). c. )The following employee costs were incurred: d. )Selling costs: $148,000. e. )Factory utility costs: $12,000. f. )Depreciation for the year: $121,000,of which $114,000 is related to factory operations and $7,000 is related to selling and administrative activities. g. )Manufacturing overhead was applied to jobs.The actual level of activity for the year was 29,000 machine hours. h. )Cost of goods manufactured for the year: $783,000. i. )Sales for the year: $1,107,000;the costs on the job cost sheets of the goods that were sold: $768,000. j. )The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold. Required: Prepare the appropriate journal entry for each of the items above (a.through j. ).You can assume that all transactions with employees,customers,and suppliers were conducted in cash.

Brabec Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 19,700 hours.At the end of the year,actual direct labor-hours for the year were 17,700 hours,the actual manufacturing overhead for the year was $392,940,and manufacturing overhead for the year was underapplied by $35,400. Required: What must have been the estimated manufacturing overhead cost at the beginning of the year used setting the predetermined overhead rate?

What is the cost of goods sold (after adjustment for under- or over applied overhead)?

If the estimated manufacturing overhead for the year was $24,000,and the applied overhead was $26,500,what was the actual manufacturing overhead cost for the year?

The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production.At the beginning of the most recent year,the following estimates were made as a basis for computing the predetermined overhead rate for the year: The following transactions took place during the year (all purchases and services were acquired on account): a. )Raw materials purchased: $86,000. b. )Raw materials requisitioned for use in production (all direct materials): $98,000. c. )Utility costs incurred in the factory: $15,000. d. )Salaries and wages incurred as follows: e. )Maintenance costs incurred in the factory: $15,000. f. )Advertising costs incurred: $89,000. g. )Depreciation recorded for the year: $80,000,of which 80% relates to factory assets and the remainder relates to selling and administrative assets. h. )Rental cost incurred on buildings: $70,000 (75% of the space is occupied by the factory,and 25% is occupied by sales and administration). i. )Miscellaneous selling and administrative costs incurred: $11,000. j. )Manufacturing overhead cost was applied to jobs as per company policy. k. )Cost of goods manufactured for the year: $500,000. l. )Sales for the year (all on account): $1,000,000.These goods cost $600,000 to manufacture. Required: Prepare journal entries to record the information above.Key your entries by the letters a through l.