Exam 4: Job Costing

Job costing ________.

Which of the following are reasons for using longer periods,such as a year,to calculate indirect cost rates?

________ is the process of distributing indirect costs to products.

Answer the following questions using the information below: Beta Corporation uses a job cost system and has two production departments,A and B.Budgeted manufacturing costs for the year are: Department A Department B Direct materials \ 800,000 \ 200,000 Direct manufacturing labor \ 200,000 \ 900,000 Manufacturing overhead \ 500,000 \ 450,000 The actual material and labor costs charged to Job #432 were as follows: Total Direct materials: \2 5,000 Direct labor: Department A \ 10,000 Department B \ 12,000 \ 22,000 Beta applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year. Proportion of manufacturing overhead with respect to the total cost of the job is ________.

An example of a denominator reason for calculating annual indirect-cost rates includes ________.

Health Care County Hospital uses an indirect job-costing system for all patients.In June,the budgeted nursing care charges for each department and budgeted allocation bases of nursing days are as follows: June Critical Care Special Care General Care Budgeted nursing costs \ 2,480,000 \ 1,644,000 \ 1,280,400 Budgeted nursing days 5,000 4,000 8,000 Patient Ms.Pinto spent six days in critical care,eight days in special care.She was shifted back to critical care due to an emergency for 6 days and finally the remainder of the month was spent in general care. Required: a.Determine the budgeted overhead rate for each department. b.What are the total charges to Ms.Pinto if she was in the facility the entire month?

For externally reported inventory costs,the Work-in-Process Control account is increased (debited)by ________.

The ________ approach carries the underallocated or overallocated amounts to overhead accounts in the following year.

Answer the following questions using the information below: Wayland Manufacturing uses a normal cost system and had the following data available for 2010: Direct materials purchased on account \ 148,000 Direct materials requisitioned 82,000 Direct labor cost incurred 130,000 Factory overhead incurred 146,000 Cost of goods completed 292,000 Cost of goods sold 256,000 Beginning direct materials inventory 26,000 Beginning WIP inventory 64,000 Beginning finished goods inventory 58,000 Overhead application rate, as a percent of direct-labor costs 125 percent -The ending balance of direct materials inventory is ________.

Indirect manufacturing costs are credited to Manufacturing Overhead Control.

An example of a numerator reason for calculating annual indirect-cost rates includes ________.

Markswell Corp uses a budgeted factory overhead rate to apply overhead to production.The following data are available for the year ended December 31,2014.The company has budgeted factory overhead of $750,000,direct labor costs of $500,000,and direct labor hours of 15,000.The actual factory overhead incurred is $800,000,direct labor costs of 450,000,and direct labor hours of 17,000. Required: a.Determine the budgeted factory overhead rate based on direct labor-hours. b.What is the applied overhead based on direct labor-hours? c.Is overhead overapplied or underapplied? Explain.

Indirect manufacturing costs should be allocated equally to each job.

Which of the following differentiates job costing from process costing?

Euphoria Company has two departments,X and Y.Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y.The following additional information is available: Budgeted Amounts Department X Department Y Direct labor cost \ 180,000 \ 165,000 Factory overhead \ 225,000 \ 200,000 Machine-hours 51,000 40,000 Actual data for Job \#25 Department X Department Y Direct materials requisitioned \ 15,000 \ 18,000 Direct labor cost \ 11,000 \ 14,000 Machine-hours 5,000 3,000 Required: a.Compute the budgeted factory overhead rate for Department X. b.Compute the budgeted factory overhead rate for Department Y. c.What is the total overhead cost of Job 25? d.If Job 25 consists of 50 units of product,what is the profit per unit if selling price is $2,000 per unit? e.What is the proportion of the direct labor cost incurred with respect to the total cost of the job? f.Should the company go ahead with this job?

In a job-costing system the cost object is an individual unit,batch,or lot of a distinct product or service.

New Age Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $20 per direct-labor hour.The following data are obtained from the accounting records for August 2014: Direct materials \ 350,000 Direct labor (7,000 hours @\ 15 hour ) \ 105,000 Indirect labor \ 25,000 Pant lease \ 75,000 Depreciation on plant and equipment \ 50,000 Marketing expense \ 20,000 Pant utilities \ 20,000 Required: a.What actual amount of manufacturing overhead cost was incurred during August 2014? b.What amount of manufacturing overhead was allocated to all jobs during August 2014? c.For August 2014,was manufacturing overhead underallocated or overallocated? Explain.

The budgeted direct-labor cost rate includes ________.

Bullz Company manufactures an energy drink.The company uses a budgeted indirect-cost rate for its manufacturing operations and during 2014 allocated $1,000,000 to work-in-process inventory.Actual overhead incurred was $1,200,000. Ending balances in the following accounts are: Work-in-Process \ 100,000 Firished Goods 750,000 Cost of Goods Sold 4,150,000 Required: a.Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold.Be sure your journal entry closes the related overhead accounts. b.Prepare a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending account balances.Be sure your journal entry closes the related overhead accounts.

The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account.