Exam 4: Job Costing

Which method for dealing with under/over allocated overhead provides the most accurate individual job cost records?

Use the information below to answer the following question(s). World Engines Ltd.manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 787 are as follows: -What is the total manufacturing cost of Job 787 using actual costing?

Job-cost records for Boucher Company contained the following data: Required: a.Compute WIP inventory at June 30. b.Compute finished goods inventory at June 30. c.Compute cost of goods sold for June.

Use the information below to answer the following question(s). Jim's Computer Products manufactures keyboards for computers.In June,the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2.The budgeted manufacturing overheads for the month were $34,500 and $37,500,respectively.For Job 501,the actual costs incurred in the two departments were as follows: Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2.The company uses a budgeted departmental overhead rate for applying overhead to production. -What is the budgeted indirect cost allocation rate for Department 1?

A factor used to systematically link an indirect cost to a cost object is called

In each period,job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit cost.

Manufacturing overhead costs incurred for the month are: Which is the correct journal entry assuming utilities and repairs were on account?

Which of the following would be appropriately costed using a job costing system?

Jordan Company has two departments,X and Y.Overhead is applied based on budgeted direct labour cost in Department X,and budgeted machine hours in Department Y.The following additional information is available. Required: a.Compute the budgeted factory indirect cost allocation rate for Department X. b.Compute the budgeted factory indirect cost allocation rate for Department Y. c.What is the total overhead cost of Job 10? d.If Job 10 consists of 50 units of product,what is the unit cost of this job?

Which of the following would be appropriately costed using a process costing system?

For each cost pool,the indirect cost rate equals the indirect cost pool divided by the cost allocation base.

LaFleur Company has the following balances as of the year ended December 31,2015. Additional information is as follows: Required: a.Compute beginning direct materials inventory. b.Compute beginning WIP inventory. c.Compute beginning finished goods inventory. d.Compute actual factory overhead incurred.

Landscape Architects provides landscape consulting services to clients that range from small businesses to large corporations.The budgeted rate charged to customers for consulting per hour is $100.The budgeted overhead for customer-support costs per hour is $45 and the budgeted other direct-cost pool rate is $25 per hour.The budgeted hourly rates charged to jobs are $30 for the architect and $15 for the assistants. Jobs #200 and #201 for Sheridan College incurred 90 and 240 hours-respectively.Each job included one licensed architect and two assistants.The architect worked 12 hours on Job #200 and 60 hours on Job #201. Required: a.Identify the cost objects. b.Determine the costs of each job using budgeted overhead rates.

Why does the Manufacturing Overhead Control account (debit)need to equal the Manufacturing Control account (credit)? What will be the effect of having an end of year remaining balance,debit or credit,on the evaluation of profitability?

Cost tracing is a specific term for assigning indirect costs.

What is the appropriate journal entry if $100,000 of materials were purchased on account for the month of August?

Process costing is a useful system for tracking the costs of building a house.

Normandeau Company's actual indirect cost pool amounted to $1,400,000 and the direct labour pool was $5,400,000.Overhead is allocated on the basis of direct labour hours.Actual and budgeted direct labour hours were 25,000 and 30,000 for the period.What is the manufacturing overhead cost allocation rate using actual direct labour hours as the cost allocation base?

Klink Corporation applies overhead based upon machine-hours.Budgeted factory overhead was $295,400 and budgeted machine-hours were 21,100.Actual factory overhead was $319,800 and actual machine-hours were 18,090.Before disposition of under/overallocated overhead,the following information was available: Required: a.Determine the budgeted factory overhead rate per machine-hour. b.Compute the over/underallocated overhead. c.Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach.The corporation uses Manufacturing Overhead Allocated and Manufacturing Overhead control accounts. d.Prepare the journal entry to dispose of the variance using the proration approach. e.Identify three value chain categories and provide an example for each on how Klink Corporation could reduce its indirect costs.

A process costing system assigns costs to groups of similar units during a specified time period and then computes the average unit cost.