Exam 15: Job Order Costing and Analysis

A company's predetermined overhead rate is applied at 150% of direct materials cost.How much overhead would be allocated to a job that used total direct materials costs was $40,000?

Predetermined overhead rates are calculated before the start of the accounting period,and are therefore based on estimates.

A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:

Morris Company applies overhead based on direct labor costs.For the current year,Morris Company estimated total overhead costs to be $400,000,and direct labor costs to be $2,000,000.Actual overhead costs for the year totaled $380,000,and actual direct labor costs totaled $1,800,000. -At year-end,the balance in the Factory Overhead account is a:

The total costs on job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

Marina Corp.applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account.The entry to dispose of this remaining factory overhead balance is:

Large aircraft manufacturers normally use:

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

Portside Watercraft uses a job order costing system.During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000,of which $24,000 were indirect.Portside incurred a factory payroll cost of $95,000,of which $25,000 was indirect labor.Portside uses a predetermined overhead rate of 170% of direct labor cost. -The journal entry to record the issuance of materials to production is:

Describe how materials flow through a job order costing system,and identify the key documents in the system.

The target cost for a job using job costing is calculated as:

At the current year-end,Ruiz Company found that its overhead was underapplied by $2,500,and this amount was not considered material.Based on this information,Ruiz should:

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor.CWN estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor cost.If CWN bases applied overhead on direct labor cost,its predetermined overhead rate for the next period should be:

The total costs on job cost sheets for jobs that are not yet completed equals the balance in the Finished Goods Inventory account.

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 amount will Andrew debit to Work in Process Inventory for the month of March?

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

In nearly all job order cost systems,materials ledger cards are perpetual records that are updated each time materials are purchased or issued for use in production.

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Merker Manufacturing Company has the following job cost sheets on file.They represent jobs that have been worked on during April of the current year.This table summarizes information provided on each sheet: (a)What is the cost of goods sold for the month of April? (b)What is the cost of the Work in Process inventory on April 30? (c)What is the cost of the finished goods inventory on April 30?