Exam 19: Job Order Costing

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.50 per machine hour.Actual overhead costs incurred during the year are as follows: Indirect materials \ 6700 Indirect labor \ 2200 Plant depreciation \ 47 Plant utilities and insurance \ 9800 Other plant overhead costs \ 12,400 Total machine hours used during year 7600 hours What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

Most companies streamline the tracking of labor costs through electronic means,using employee ID cards and job numbers to assign labor charges to individual jobs.

On June 30,Cleopatra,Inc.finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Cleopatra completed the sale of the goods to a customer for $55,000 on account.Provide the journal entry to record the sales revenue.Omit explanation.

Pluto Travel Services provided the following information: Direct labor rate: $40 per hour Predetermined allocation rate for indirect costs: $21 per direct labor hour Pluto is negotiating a job with a new client.The job will require 10 hours of direct labor.If Pluto wishes to have at least a 15% gross profit on the revenues,it needs to record $713 of revenues.

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 $403,900 and a total of 7200 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.)

On June 30,Greenville Manufacturing finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Greenville completed the sale of the goods to a customer for $55,000 on account.Provide the entry to record the cost of goods sold.Omit explanation.Assume the perpetual inventory system is used.

Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to Work-in-Process Inventory is less than the amount actually incurred.

A job order costing system would be appropriate for a manufacturing company that manufactures identical units through a series of uniform production steps.

Sybil,Inc.uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs.The company recently completed Job 300X.This job used 11 machine hours and 5 direct labor hours.The predetermined overhead allocation rate is calculated to be $43 per machine hour.What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

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.

The actual direct labor costs are assigned to individual jobs,and the actual direct labor cost is recorded with a debit to Work-in-Process Inventory.

The journal entry for adjustment of overallocated manufacturing overhead includes a ________.

In a job order costing system,a credit to Finished Goods Inventory will be accompanied by a debit to ________.

The Equinox Fabrication Plant suffered a fire incident in August,and most of the records for the year were destroyed.The following accounting data for the year were recovered: Total manufacturing overhead estimated at the beginning of the year \ 103,520 Total direct labor costs estimated at the beginning of the year \ 185,000 Total direct labor hours estimated at the beginning of the year 3500 direct labor hours Actual manufacturing overhead costs for the year \ 99,570 Actual direct labor costs for the year \ 150,000 Actual direct labor hours for the year 2950 direct labor hours The company bases its manufacturing overhead allocation on the number of direct labor hours.What was the predetermined overhead allocation rate for the year? (Round your answer to the nearest cent.)

Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on direct labor costs.The production details for the year are given below: Total manufacturing overhead costs estimated at the beginning of the year \ 150,000 Total direct labor costs estimated at the beginning of the year \ 340,000 Total direct labor hours estimated at the beginning of the year 10,000 direct labor hours Actual manufacturing overhead costs for the year \ 150,000 Actual direct labor costs for the year \ 360,000 Actual direct labor hours for the year 11,000 direct labor hours Calculate the manufacturing overhead allocation rate for the year based on the above data.(Round your final answer to two decimal places.)

In a manufacturing operation,depreciation of plant equipment should be debited to the Depreciation Expense account.

Manufacturing overhead costs allocated to a job amounted to $492,000.The actual manufacturing costs incurred during the year were $570,000.Overhead costs have been underallocated.

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?

In a machine-intensive production environment,the most accurate cost driver of manufacturing overhead costs is usually ________.

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.Omit explanation.