The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: \[\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\ \hline \text { Raw Materials Inventory } & \$ 31,000 \\ \hline \text { Work-in-Process Inventory } & 42,000 \\ \hline \text { Finished Goods Inventory } & 52,000 \\ \hline \text { Manufacturing Overhead } & 20,000 \\ \hline \end{array}\] During the month,direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

A) $42,000 B) $64,000 C) $10,000 D) $25,000 A) $42,000 B) $64,000 C) $10,000 D) $25,000

The accounts of Melissa Manufacturing showed the following balances at the beginning of December: \[\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\ \hline \text { Raw Materials Inventory } & \$ 56,000 \\ \hline \text { Work-in-Process Inventory } & 76,000 \\ \hline \text { Finished Goods Inventory } & 36,000 \\ \hline \text { Manufacturing Overhead } & 19,000 \\ \hline \end{array}\] The following transactions took place during the month: December 2: Issued direct materials $23,000 and indirect materials $6,000 to production. December 15: Incurred $6,000 and $4,000 toward factory's direct labor cost and indirect labor cost,respectively. What should be the balance in the Work-in-Process Inventory following these transactions?

A) $105,000 B) $82,000 C) $59,000 D) $80,000 A) $105,000 B) $82,000 C) $59,000 D) $80,000

The Carlin Fabrication Plant suffered a fire incident at the beginning of the year,which resulted in the loss of property including the accounting records.Some data for the year were retrieved,and extracts from it are shown below: \[\begin{array} { | l | r | } \hline \begin{array} { l } \text { Total manufacturing overhead costs estimated at the beginning } \\ \text { of the year } \end{array} & \$ 105,000 \\ \hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 186,000 \\ \hline \text { Total direct labor hours estimated at the beginning of the year } & 3,400 \text { direct labor hours } \\ \hline \text { Total machine hours estimated at the beginning of the year } & 9,000 \text { machine hours } \\ \hline \text { Actual manufacturing overhead costs for the year } & \$ 96,500 \\ \hline \text { Actual direct labor costs for the year } & \$ 146,000 \\ \hline \text { Actual direct labor hours for the year } & 2,250 \text { direct labor hours } \\ \hline \text { Actual machine hours for the year } & 10,000 \text { machine hours } \\ \hline \end{array}\] The company's manufacturing overhead allocation is based on the number of machine hours.What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

A) $26,250 B) $308,823 C) $116,700 D) $206,666 A) $26,250 B) $308,823 C) $116,700 D) $206,666

Jordan Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 30% times the direct labor cost.In the month of June,Jordan completed Job 13C,and its details are as follows: \[\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,020 \\ \hline \text { Direct labor cost } & \$ 25,000 \\ \hline \text { Direct labor hours } & 30 \text { hours } \\ \hline \text { Units of product produced } & 250 \\ \hline \end{array}\] What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

A) $154.08 B) $131.30 C) $124.12 D) $130.00 A) $154.08 B) $131.30 C) $124.12 D) $130.00

Specialty Wood Products,Inc.had the following manufacturing labor costs last month: \[\begin{array} { | l | r | } \hline \text { Woodworkers' wages } & \$ 100,000 \\ \hline \text { Indirect laborers' wages } & 20,000 \\ \hline \text { Maintenance personnel wages } & 10,000 \\ \hline \end{array}\] Provide the journal entry to record the labor costs incurred,which will be paid at a later date.

\[\begin{array} { | c | r | r | } \hlin

Exam 19: Job Order Costing

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: Account Debit Raw Materials Inventory \ 31,000 Work-in-Process Inventory 42,000 Finished Goods Inventory 52,000 Manufacturing Overhead 20,000 During the month,direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

(Multiple Choice)

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Question 81

At the beginning of the year,Rupert Manufacturing had the following account balances: $At the beginning of the year,Rupert Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { l l } \text { Direct materials placed in production } & \$80 , 000 \\ \text { Direct labor incurred } & 190,000 \\ \text { Manufacturing overhead incursed } & 300,000 \\ \text { Manufacturing overhead allocated to production } & 295,000 \\ \text { Cost of jobs completed } & 500,000 \\ \text { Jobs sold for total revenue of } & 750,000 \\ \text { Cost of jobs sold } & 440,000 \end{array} The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment.)$ $At the beginning of the year,Rupert Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { l l } \text { Direct materials placed in production } & \$80 , 000 \\ \text { Direct labor incurred } & 190,000 \\ \text { Manufacturing overhead incursed } & 300,000 \\ \text { Manufacturing overhead allocated to production } & 295,000 \\ \text { Cost of jobs completed } & 500,000 \\ \text { Jobs sold for total revenue of } & 750,000 \\ \text { Cost of jobs sold } & 440,000 \end{array} The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment.)$ $At the beginning of the year,Rupert Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { l l } \text { Direct materials placed in production } & \$80 , 000 \\ \text { Direct labor incurred } & 190,000 \\ \text { Manufacturing overhead incursed } & 300,000 \\ \text { Manufacturing overhead allocated to production } & 295,000 \\ \text { Cost of jobs completed } & 500,000 \\ \text { Jobs sold for total revenue of } & 750,000 \\ \text { Cost of jobs sold } & 440,000 \end{array} The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment.)$ $At the beginning of the year,Rupert Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { l l } \text { Direct materials placed in production } & \$80 , 000 \\ \text { Direct labor incurred } & 190,000 \\ \text { Manufacturing overhead incursed } & 300,000 \\ \text { Manufacturing overhead allocated to production } & 295,000 \\ \text { Cost of jobs completed } & 500,000 \\ \text { Jobs sold for total revenue of } & 750,000 \\ \text { Cost of jobs sold } & 440,000 \end{array} The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment.)$ $At the beginning of the year,Rupert Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { l l } \text { Direct materials placed in production } & \$80 , 000 \\ \text { Direct labor incurred } & 190,000 \\ \text { Manufacturing overhead incursed } & 300,000 \\ \text { Manufacturing overhead allocated to production } & 295,000 \\ \text { Cost of jobs completed } & 500,000 \\ \text { Jobs sold for total revenue of } & 750,000 \\ \text { Cost of jobs sold } & 440,000 \end{array} The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment.)$ The following additional details are provided for the year: Direct materials placed in production \8 0,000 Direct labor incurred 190,000 Manufacturing overhead incursed 300,000 Manufacturing overhead allocated to production 295,000 Cost of jobs completed 500,000 Jobs sold for total revenue of 750,000 Cost of jobs sold 440,000 The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment.)

(Essay)

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Question 82

The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory account and a credit to the Cost of Goods Manufactured account.

(True/False)

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Question 83

When job order costing is used in the service industry,the allocation of indirect costs is normally based on machine hours.

(True/False)

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Question 84

Which of the following statements is true of costing systems?

(Multiple Choice)

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Question 85

The records at Smith and Jones,Inc.show that Job 110 is charged with $12,000 of direct materials and $11,000 of direct labor.Smith and Jones,Inc.allocate manufacturing overhead at 85% of direct labor cost.What is the total cost of Job No.110?

(Multiple Choice)

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Question 86

The journal entry to record $1,600 of direct labor and $250 of indirect labor incurred will include debit(s)to the ________.

(Multiple Choice)

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Question 87

Dezire Travel Services provided the following information: Direct labor rate: $87 per hour Predetermined overhead allocation rate for indirect costs: $23 per direct labor hour If Dezire earns $1,900 for a job requiring 10 hours of direct labor,then Dezire will make a profit of $1,030.

(True/False)

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Question 88

At the beginning of the year,Judge Manufacturing had the following account balances: $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | r | } \hline \text { Direct materials placed in production } & \$ 83,800 \\ \hline \text { Direct labor incurred } & 191,800 \\ \hline \text { Manufacturing overhead incurred } & 300,900 \\ \hline \begin{array} { l } \text { Manufacturing overhead allocated to } \\ \text { production } \end{array} & 295,700 \\ \hline \text { Cost of jobs completed and transferred } & 501,200 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | r | } \hline \text { Direct materials placed in production } & \$ 83,800 \\ \hline \text { Direct labor incurred } & 191,800 \\ \hline \text { Manufacturing overhead incurred } & 300,900 \\ \hline \begin{array} { l } \text { Manufacturing overhead allocated to } \\ \text { production } \end{array} & 295,700 \\ \hline \text { Cost of jobs completed and transferred } & 501,200 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | r | } \hline \text { Direct materials placed in production } & \$ 83,800 \\ \hline \text { Direct labor incurred } & 191,800 \\ \hline \text { Manufacturing overhead incurred } & 300,900 \\ \hline \begin{array} { l } \text { Manufacturing overhead allocated to } \\ \text { production } \end{array} & 295,700 \\ \hline \text { Cost of jobs completed and transferred } & 501,200 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | r | } \hline \text { Direct materials placed in production } & \$ 83,800 \\ \hline \text { Direct labor incurred } & 191,800 \\ \hline \text { Manufacturing overhead incurred } & 300,900 \\ \hline \begin{array} { l } \text { Manufacturing overhead allocated to } \\ \text { production } \end{array} & 295,700 \\ \hline \text { Cost of jobs completed and transferred } & 501,200 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ $At the beginning of the year,Judge Manufacturing had the following account balances: The following additional details are provided for the year: \begin{array} { | l | r | } \hline \text { Direct materials placed in production } & \$ 83,800 \\ \hline \text { Direct labor incurred } & 191,800 \\ \hline \text { Manufacturing overhead incurred } & 300,900 \\ \hline \begin{array} { l } \text { Manufacturing overhead allocated to } \\ \text { production } \end{array} & 295,700 \\ \hline \text { Cost of jobs completed and transferred } & 501,200 \\ \hline \end{array} The ending balance in the Finished Goods Inventory account is a .$ The following additional details are provided for the year: Direct materials placed in production \ 83,800 Direct labor incurred 191,800 Manufacturing overhead incurred 300,900 Manufacturing overhead allocated to production 295,700 Cost of jobs completed and transferred 501,200 The ending balance in the Finished Goods Inventory account is a .

(Multiple Choice)

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Question 89

The accounts of Melissa Manufacturing showed the following balances at the beginning of December: Account Debit Raw Materials Inventory \ 56,000 Work-in-Process Inventory 76,000 Finished Goods Inventory 36,000 Manufacturing Overhead 19,000 The following transactions took place during the month: December 2: Issued direct materials $23,000 and indirect materials $6,000 to production. December 15: Incurred $6,000 and $4,000 toward factory's direct labor cost and indirect labor cost,respectively. What should be the balance in the Work-in-Process Inventory following these transactions?

(Multiple Choice)

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Question 90

The predetermined overhead allocation rate is calculated by dividing ________.

(Multiple Choice)

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Question 91

Mumbai Travel Services provided the following information: Direct labor rate: $40 per hour Predetermined overhead allocation rate for indirect costs: $30 per direct labor hour If Mumbai Travel earns $600 for a job requiring 8 hours of direct labor,then Mumbai Travel will make a profit of $40.

(True/False)

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Question 92

Mira Financial Advisors provides accounting and finance assistance to customers in the retail business.Mira has four professionals on staff,plus an office with six clerical staff.Total compensation,including benefits,for the professional staff runs about $753,000 per year,and it normally has about 8,300 billable hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $575,000. Mira allocates office and administrative costs to clients monthly,using a predetermined overhead allocation rate based on billable hours.During July,Mira's professionals spent 38 hours on their client,Riley Sales.Mira adds a 25% markup on its costs to calculate the amount billed to the customer.How much should the company charge Riley Sales for the month of July? (Round your intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

(Multiple Choice)

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Question 93

On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $80,400 and a beginning balance in Finished Goods Inventory of $22,000.During the year,Primary incurred manufacturing costs of $352,000. In addition,the following transactions occurred during the year: Job A-12 was completed for a total cost of $121,000 and was sold for $125,000. Job A-13 was completed for a total cost of $201,000 and was sold for $213,000. Job A-15 was completed for a total cost $64,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $11,000,and was adjusted to zero at year-end. What was the final balance in the Cost of Goods Sold account?

(Multiple Choice)

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Question 94

Pandora Manufacturing purchased $95,000 of raw materials on account and $5,000 of raw materials for cash.The materials will be used to produce furniture.Provide the journal entry for the purchase of materials.

(Essay)

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Question 95

Haverhill Products completed Job 440 and several other jobs during the year.In addition to direct labor and direct materials cost,Haverhill allocated $450 of manufacturing overhead to the job.Provide the journal entry for the allocation of manufacturing overhead.

(Essay)

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Question 96

Clinton Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor costs.The following are the details of production during the year: Total manufacturing overhead costs estimated at the beginning of the year \ 140,000 Total direct labor costs estimated at the beginning of the year \ 330,000 Total direct labor hours estimated at the beginning of the year 12,000 direct labor hours Actual manufacturing overhead costs for the year \ 160,000 Actual direct labor costs for the year \ 370,000 Actual direct labor hours for the year 11,800 direct labor hours Calculate the amount of manufacturing overhead costs allocated to production.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

(Multiple Choice)

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Question 97

The Carlin Fabrication Plant suffered a fire incident at the beginning of the year,which resulted in the loss of property including the accounting records.Some data for the year were retrieved,and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year \ 105,000 Total direct labor costs estimated at the beginning of the year \ 186,000 Total direct labor hours estimated at the beginning of the year 3,400 direct labor hours Total machine hours estimated at the beginning of the year 9,000 machine hours Actual manufacturing overhead costs for the year \ 96,500 Actual direct labor costs for the year \ 146,000 Actual direct labor hours for the year 2,250 direct labor hours Actual machine hours for the year 10,000 machine hours The company's manufacturing overhead allocation is based on the number of machine hours.What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

(Multiple Choice)

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Question 98

Jordan Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 30% times the direct labor cost.In the month of June,Jordan completed Job 13C,and its details are as follows: Direct materials cost \ 6,020 Direct labor cost \ 25,000 Direct labor hours 30 hours Units of product produced 250 What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

(Multiple Choice)

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Question 99

Specialty Wood Products,Inc.had the following manufacturing labor costs last month: Woodworkers' wages \ 100,000 Indirect laborers' wages 20,000 Maintenance personnel wages 10,000 Provide the journal entry to record the labor costs incurred,which will be paid at a later date.

(Essay)

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Question 100

Showing 81 - 100 of 170

The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory account and a credit to the Cost of Goods Manufactured account.

When job order costing is used in the service industry,the allocation of indirect costs is normally based on machine hours.

Which of the following statements is true of costing systems?

The records at Smith and Jones,Inc.show that Job 110 is charged with $12,000 of direct materials and $11,000 of direct labor.Smith and Jones,Inc.allocate manufacturing overhead at 85% of direct labor cost.What is the total cost of Job No.110?

The journal entry to record $1,600 of direct labor and $250 of indirect labor incurred will include debit(s)to the ________.

Dezire Travel Services provided the following information: Direct labor rate: $87 per hour Predetermined overhead allocation rate for indirect costs: $23 per direct labor hour If Dezire earns $1,900 for a job requiring 10 hours of direct labor,then Dezire will make a profit of $1,030.

The predetermined overhead allocation rate is calculated by dividing ________.

Mumbai Travel Services provided the following information: Direct labor rate: $40 per hour Predetermined overhead allocation rate for indirect costs: $30 per direct labor hour If Mumbai Travel earns $600 for a job requiring 8 hours of direct labor,then Mumbai Travel will make a profit of $40.

Pandora Manufacturing purchased $95,000 of raw materials on account and $5,000 of raw materials for cash.The materials will be used to produce furniture.Provide the journal entry for the purchase of materials.

Haverhill Products completed Job 440 and several other jobs during the year.In addition to direct labor and direct materials cost,Haverhill allocated $450 of manufacturing overhead to the job.Provide the journal entry for the allocation of manufacturing overhead.

Specialty Wood Products,Inc.had the following manufacturing labor costs last month: Woodworkers' wages \ 100,000 Indirect laborers' wages 20,000 Maintenance personnel wages 10,000 Provide the journal entry to record the labor costs incurred,which will be paid at a later date.

Introduction to Managerial Accounting

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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