Exam 19: Job Order Costing

A cost accounting system will assist a manager in determining how many and which products to produce.

The flow of costs in a job order costing system ________.

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $318,000.The manufacturing overhead costs will be allocated based on direct labor hours.Gardner estimates 5000 direct labor hours for the coming year.In January,Gardner completed Job A33,which used 70 machine hours and 23 direct labor hours.What was the amount of manufacturing overhead allocated to Job A33? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.

At the beginning of the year,Conway Manufacturing had the following account balances: The following additional details are provided for the year: Direct materials placed in production \ 82,000 Direct labor incurred 191,400 Manufacturing overhead incurred 302,000 Manufacturing overhead allocated to production 295,700 Cost of jobs completed and transferred 500,900 The ending balance in the Work-in-Process Inventory account is a ________.

Haddows,Inc.completed Job GH6 last month.The cost details of GH6 are shown below. Direct labor cost \ 2000 Direct materials cost \ 90 Direct labor hours 7 hours Predetermined overhead allocation rate per direct labor hour \ 71 Number of units of finished product 34 Calculate the cost per unit of the finished product of Job GH6.(Round your answer to the nearest cent.)

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.

At the beginning of the year,Tea Tree Manufacturing had the following account balances: The following additional details are provided for the year: Direct materials placed in production \ 81,100 Direct labor incurred 191,400 Manufacturing overhead incurred 301,800 Manufacturing overhead allocated to production 295,000 Cost of jobs completed and transferred 501,500 The unadjusted balance in the Manufacturing Overhead account is a ________.

At the beginning of the year,Barrington Manufacturing had the following account balances: The following additional details are provided for the year: Direct materials placed in production \ 80,000 Direct labor incurred 190,000 Manufacturing overhead incurred 300,000 Manufacturing overhead allocated to production 295,000 Cost of jobs completed 500,000 Record these transactions in the T-accounts and calculate the ending balances for Work-in-Process Inventory,Finished Goods Inventory,and Manufacturing Overhead accounts (unadjusted).

The journal entry to record indirect labor costs incurred involves a debit to the ________.

Warren Manufacturing began business on January 1.During its first year of operation,Warren worked on five industrial jobs and reported the following information at year-end: Job 1 Job 2 Job 3 Job 4 Job 5 Direct Materials \ 1,000 \ 7,500 \ 4800 \ 3700 \ 1,500 Direct Labor 12,000 20,000 13,800 12,700 800 Allocated Mfg. Overhead 1,500 6,000 2400 100 200 Not Job completed: Jun 30 Sep 1 Oct 15 Nov 1 completed Job sold: Jul 10 Sep 12 Not sold Not sold N/A Revenues: \ 25,000 \ 39,000 N/A N/A N/A What was the balance in Finished Goods Inventory at year-end?

On January 1,Standard Manufacturing had a beginning balance in Work-in-Process Inventory of $82,000 and a beginning balance in Finished Goods Inventory of $21,000.During the year,Standard incurred manufacturing costs of $354,000. During the year,the following transactions occurred: Job A-12 was completed for a total cost of $120,000 and was sold for $126,000. Job A-13 was completed for a total cost of $203,000 and was sold for $210,000. Job A-15 was completed for a total cost $60,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $12,000 and was adjusted to zero at year-end. What was the amount of gross profit reported by Standard at the end of the year?

At the end of the year,Delta,Inc.has an unadjusted debit balance in the Manufacturing Overhead account of $3,950.Provide the year-end adjusting entry needed to adjust the account.Omit explanation.

Which of the following would most likely be accounted for using a job order costing system?

Midtown,Inc.uses a predetermined overhead allocation rate of $67 per direct labor hour.In January,the company completed Job A23 which utilized 18 direct labor hours.Which of the following correctly describes the journal entry to allocate overhead to the job?

Jeremy Corporation estimated manufacturing overhead costs for the year to be $540,000.Jeremy also estimated 9000 machine hours and 2000 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 6 machine hours and 4 direct labor hours.What is the amount of manufacturing overhead allocated to the completed job? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: Direct labor cost \ 890 Direct materials cost \ 1100 Machine hours 8 hours Direct labor hours 21 hours Predetermined overhead allocation rate \ 60 per machine hour What is the total cost of Job 12?

Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account.

When would direct labor costs associated with building a custom home be assigned to the job?

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.Omit explanation.