Exam 15: Job Order Costing and Analysis

B&T Company's production costs for May are: direct labor,$13,000; indirect labor,$6,500; direct materials,$15,000; property taxes on production facility,$800; factory heat,lights and power,$1,000; and insurance on plant and equipment,$200.B&T Company's factory overhead incurred for May is:

A system of accounting for production operations that produces timely information about inventories and manufacturing costs per unit of product is a:

Andrew Industries purchased $165,000 of raw materials on account during the month of March.The beginning Raw Materials Inventory balance was $22,000,and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. -What is the ending Raw Materials Inventory balance for March?

A company's predetermined overhead rate is 130% of direct labor cost.How much overhead would be allocated to a job that required total direct labor costs of $60,000?

Production of one unit of Product BJM used $27.50 of direct materials and $21.00 of direct labor.The unit sold for $76.00 and was assigned overhead at a rate of 30% of direct labor costs.What is the gross profit on the sale of one unit of Product BJM?

Chen Service applied overhead on the basis of direct labor costs during the current year.Overhead applied was $16,500.Actual overhead incurred was $17,200. Prepare the adjusting journal entry for over- or underapplied overhead .

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

A company that uses a job order costing system incurred $10,000 of factory payroll during May.Prepare the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

There are two basic types of cost accounting systems: job order costing and process costing.

The production activities for a customized product represent a(n):

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. -If Minstrel incurred total overhead costs of $167,800 during the month,compute the amount of under- or overapplied overhead:

A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process,$42,000 to jobs completed but not sold,and $66,000 to jobs finished and sold.At year-end,the company's Factory Overhead account has a credit balance of $9,000.What entry (if any)should the company make at year-end related to this overhead balance?

A receiving report is the source document for recording materials received in both a materials ledger card and in the general ledger.

A company's overhead rate is 200% of direct labor cost.Using the following incomplete accounts,determine the cost of direct materials used.

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost. -The journal entry to record the payment of the factory payroll is:

At the end of June,job cost sheets for Kennedy Manufacturing show the following total costs accumulated on three custom jobs: Job 203 was started in production in May and the following costs were assigned to it in May: direct materials,$12,000; direct labor,$6,000; and overhead $8,700.Jobs 204 and 205 are started in June.Overhead cost is applied with a predetermined rate based on direct labor cost.Jobs 203 and 204 are finished in June,and Job 205 will be finished in July.No raw materials are used indirectly in June.Using this information,answer the following questions assuming the company's predetermined overhead rate did not change. a.What is the total cost of direct materials requisitioned in June for the three jobs? b.What is the total direct labor cost incurred during June for the three jobs? c.What predetermined overhead rate is used during June? d.How much total cost is transferred to finished goods during June?

A company has an overhead application rate of 125% of direct labor costs.How much overhead would be allocated to a job if it required direct labor costing $20,000?

In a job order costing system,raw materials requisitioned as direct materials are debited to ________; indirect materials are debited to ________.

Only product costs are recorded on job cost sheets.

Calwell Corp.uses a job order costing system.Four jobs were started during the current year.The following is a record of the costs incurred: Actual overhead costs were $55,800.The predetermined overhead rate is $2.40 per direct labor hour.During the year,Jobs 1010,1012,and 1013 were completed.Also,Jobs 1010 and 1013 were sold for $387,000.Assuming that this is Calwell's first year of operations: (a)Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs. (b)Calculate the ending balances in the Work in Process Inventory,Finished Goods Inventory,and Factory Overhead accounts.Does the Factory Overhead account balance indicate over- or underapplied overhead?