Exam 19: Job Order Costing

Groot Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Groot has four public relations specialists plus an office staff.At the beginning of the year,Groot estimated the total cost of salaries and benefits for the public relations specialists at $658,000 and a total of 7,000 billable hours for the year.All remaining office and administrative costs were estimated at $392,000.The allocation base for office and administrative costs is billable hours.In June,Groot signed a contract for a Russian ballet performance.It estimated the new contract would require 34 hours of specialist time.What is the total cost estimate for this contract?

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account,________.

Jeremy Corporation estimated manufacturing overhead costs for the year to be $490,000.Jeremy also estimated 7,000 machine hours and 1,000 direct labor hours for the year.It bases the predetermined overhead allocation rate on machine hours.On January 31,Job 25 was completed.It required 4 machine hours and 6 direct labor hours.What is the amount of manufacturing overhead allocated to the completed job? (Round your answer to the nearest dollar.)

Jezebel,Inc.completed Job 12 and several other jobs in the last week.The cost details of Job 12 are shown below. Direct labor cost \ 800 Direct materials cost \ 100 Machine hours 8 hours Direct labor hours 17 hours Predetermined overhead allocation rate per machine hour \ 85 Number of units of finished product 27 units What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent.)

Leonard Manufacturing Systems uses job order costing and a perpetual inventory system.When recording the sale of a job,which account(s)is(are)debited?

Which of the following describes the allocation base for allocating manufacturing overhead costs?

Norman Manufacturing reports the following data for the month: Purchases of raw materials, on account \ 55,250 Materials requisitions: Direct materials 49,750 Indirect materials 3,700 Labor incurred (not yet paid): Direct labor 51,000 Indirect labor 2,500 Journalize the entries relating to materials and labor.Omit explanations.

On January 1,Jackson,Inc.'s Work-in-Process Inventory account showed a balance of $65,800.During the year,materials requisitioned for use in production amounted to $71,900,of which $67,600 represented direct materials.Factory wages for the period were $210,000 of which $187,000 were for direct labor.Manufacturing overhead is allocated on the basis of 60% of direct labor cost.Actual overhead was $116,340.Jobs costing $353,200 were completed during the year.The December 31 balance in Work-in-Process Inventory is ________.

SES Manufacturing has finished production activities for the year.The company allocates manufacturing overhead based on a percentage of direct labor costs.The company has provided the following information: Based on the above data,calculate the unadjusted ending balance in the Manufacturing Overhead account.

Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account.

Which of the following would use a process costing system rather than a job order costing system?

The entry to record the purchase of direct materials on account would include a ________.

The predetermined overhead allocation rate is the rate used to ________.

Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Fogelin has four public relations specialists and office staff.At the beginning of the year,Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403,200 and a total of 7,000 billable hours for the year.The office and administrative costs were estimated at $679,000.What direct labor rate would Fogelin use for the cost of its specialists? (Round your answer to the nearest cent.)

Olympia Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $830,000.In June,Job 511 was completed.The details of Job 511 are shown below. Direct materials cost \ 25,000 Direct labor cost \ 13,000 Direct labor hours 500 hours Units of product produced 200 hours What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Davie,Inc.used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,100,000 in establishing its predetermined overhead allocation rate for the year.Actual results showed the following: Actual manufacturing overhead \ 800,000 Allocated manufacturing overhead \ 900,000 What was the number of direct labor hours worked during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest whole number.)

What is cost of goods manufactured? Describe the flow of this cost through the job order costing system.Your answer should include the accounts involved and whether the flow involves a debit or credit.

During the year,a company incurred $533,000 of manufacturing overhead costs and allocated $463,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

If the debit side of the Manufacturing Overhead account totals more than the credit side of the account,the manufacturing overhead is overallocated.

On June 1,Dalton Productions had beginning balances as shown in the T-accounts below. During June,the following transactions took place: June 2: Issued $2,900 of direct materials and $200 of indirect materials to production. What was the balance in the Manufacturing Overhead account following this transaction?