Exam 19: Job Order Costing

At the end of the year,Beta,Inc.has an unadjusted debit balance in the Manufacturing Overhead account of $4000.The adjusting journal entry needed to adjust the balance to zero will include a ________.

Saber Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Saber has four public relations specialists and office staff.At the beginning of the year,Saber estimated the total cost of salaries and benefits for the public relations specialists at $404,000 and a total of 7100 billable hours for the year.The office and administrative costs were estimated at $676,000.The allocation base for office and administrative costs is billable hours.What rate would Saber use for allocating the cost of its office and administrative staff? (Round your answer to the nearest cent.)

Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Island has four public relations specialists and office staff.At the beginning of the year,Island estimated the total cost of salaries and benefits for the public relations specialists at $684,000 and a total of 7600 billable hours for the year.The office and administrative costs were estimated at $418,000.The allocation base for office and administrative costs is billable hours.In June,Island signed a contract for a Russian ballet performance.It negotiated a price of $6800 for its services.When the job was complete,Island's records showed that it had logged 37.0 billable hours.What was the actual total cost of the job for Island?

Caltran,Inc.completed manufacturing Job 445.It included $350 of direct materials cost,$1240 of direct labor cost,and $500 of allocated manufacturing overhead.Which of the following is the correct journal entry needed to record the completed job?

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

Halcyon,Inc.completed Job 10B last month.The cost details of Job 10B are shown below. Direct labor cost \ 2060 Direct materials cost \ 85 Machine hours 6 hours Direct labor hours 72 hours Predetermined overhead allocation rate per direct labor hour \ 34 Calculate the total job cost for Job 10B.

On June 1,Westbrook Productions had beginning balances as shown in the T-accounts below. During June,the following transactions took place: June 2: Issued $3300 of direct materials and $600 of indirect materials to production. June 13: Incurred $7400 of direct factory labor cost and $14,800 of indirect factory labor cost. What was the balance in the Manufacturing Overhead account following these transactions?

Which of the following companies is most likely to use process costing?

Broxsie Fabrication,Inc.issued $60,000 of direct materials and $15,500 of indirect materials to production.Prepare the journal entry to record the transaction.Omit explanation.

Dezire Travel Services provided the following information: Direct labor rate: $80 per hour Predetermined allocation rate for indirect costs: $18 per direct labor hour If Dezire records revenue of $1,600 for a job requiring 10 hours of direct labor,then Dezire will make a profit of $800.

Connecticut Manufacturing began business on January 1.During its first year of operation,Connecticut 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 \ 2300 \ 7900 \ 4,000 \ 3,500 \ 1,500 Direct Labor \ 14,000 \ 23,000 \ 13,000 \ 12,000 \ 800 Allocated Mfg, Overhead \ 1600 \ 6500 \ 2,500 \ 7,500 \ 200 Not Tob completed: Jur 30 Sep 1 Oct 15 Nov 1 completed Tob sold: Jul 10 Sep 12 Not sold Not sold N/A Revenues: \ 47,000 \ 41,000 N/A N/A N/A Connecticut's allocation of overhead costs left a debit balance of $1400 in the Manufacturing Overhead account,which was adjusted to zero at year-end.What was the final balance in Cost of Goods Sold for the year ended December 31?

What causes manufacturing overhead to be overallocated? When manufacturing overhead is overallocated,will the Manufacturing Overhead account have a debit or a credit balance?

The accounting for the allocation of overhead costs is a three-step process and occurs at three different points in the accounting cycle.List each of the three steps.For each step indicate when the step occurs and why the step is needed.

At the beginning of the year,Green Street Manufacturing had the following account balances: The following additional details are provided for the year: Direct materials placed in production \ 83,000 Direct labor incurred 194,000 Manufacturing overhead incurred 302,000 Manufacturing overhead allocated to production 292,000 Cost of jobs completed and transferred 506,000 Total revenue 757,000 Cost of goods sold 441,000 After adjusting the balance in Manufacturing Overhead,the ending balance in the Finished Goods Inventory account is a ________.

Bacon Financial Advisors provides accounting and finance assistance to customers in the retail business.Bacon has four professionals on staff and an office with six clerical staff.Total compensation,including benefits,for the professional staff runs about $573,000 per year,and normal billable hours are 8000 hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $753,000.What is the direct labor rate for the professional staff? (Round your answer to the nearest cent.)

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 $756,000 per year,and it normally has about 8000 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 $576,000. 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.)

Journalize the following transactions for Malone Custom Furniture Manufacturing (omit explanations): a.Incurred and paid advertising expenses,$3,500. b.Incurred manufacturing wages of $30,000,60% of which was direct labor and 40% of which was indirect labor.Wages will be paid at a later date. c.Purchased raw materials on account,$27,000. d.Used in production: direct materials,$12,000; indirect materials,$5,500 e.Recorded manufacturing overhead: depreciation on plant,$14,000; plant insurance (previously paid),$1,800; plant property tax,$4,500 (credit Property Tax Payable). f.Allocated manufacturing overhead to jobs,150% of direct labor costs. g.Completed production on jobs with costs of $55,000. h.Sold inventory on account,$64,000; cost of goods sold,$35,000.The company uses the perpetual inventory system. i.Adjusted for overallocated or underallocated overhead.

Underallocated overhead occurs when ________.

Highland,Inc.,an engineering firm,uses a job order costing system to accumulate client-related costs.The predetermined overhead allocation rate is 40% of staff labor cost.The work by engineers is charged to jobs at a rate of $32 per staff labor hour.A recent job for a client used 70 staff labor hours.How much was the total job cost?

When a job order costing system is used,actual manufacturing overhead costs are debited to ________.