Exam 19: Job Order Costing

Oxford Manufacturing Company completed jobs that cost $48,000 to produce.In the same period, the company sold jobs for $102,000 that cost $53,000 to produce.Prepare the journal entries for the completion and sales of the jobs.All sales are on account.Omit explanation.Assume the perpetual inventory system is used.

At the beginning of the year,Rupert 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 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.)

On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $81,900 and a beginning balance in Finished Goods Inventory of $20,000.During the year,Primary incurred manufacturing costs of $351,000. In addition,the following transactions occurred during the year: Job A-12 was completed for a total cost of $122,000 and was sold for $128,000. Job A-13 was completed for a total cost of $206,000 and was sold for $212,000. Job A-15 was completed for a total cost $61,000 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 final balance in the Cost of Goods Sold account?

Using a job order costing system,Jabari Company sold jobs on account with a selling price of $985,000 and a cost of $410,000.Assume the company uses the perpetual inventory system.The journal entries required to record this transaction are:

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

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

On January 1,Alistair Manufacturing had a beginning balance in Work-in-Process Inventory of $164,000 and a beginning balance in Finished Goods Inventory of $25,000.During the year,Alistair incurred manufacturing costs of $202,000. During the year,the following transactions occurred: Job C-62 was completed for a total cost of $140,000 and was sold for $157,000. Job C-63 was completed for a total cost of $181,000 and was sold for $212,000. Job C-64 was completed for a total cost $82,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at year-end. What was the amount of gross profit reported by Alistair at the end of the year?

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

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 $70,900,of which $67,400 represented direct materials.Factory wages for the period were $209,000 of which $186,600 were for direct labor.Manufacturing overhead is allocated on the basis of 60% of direct labor cost.Actual overhead was $116,340.Jobs costing $353,220 were completed during the year.The December 31 balance in Work-in-Process Inventory is ________.

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours.It has provided the following information for the year: Manufacturing overhead costs allocated to production \ 189,000 Actual direct materials cost \ 540,000 Actual direct labor cost \ 2,450,000 Actual direct labor hours 9400 direct labor hours Estimated machine hours 180,000 machine hours Based on the above information,calculate Q-dot's predetermined overhead allocation rate.(Round your answer to two decimal places.)

Jordan Manufacturing uses a predetermined overhead allocation rate based on 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 \ 6400 Direct labor cost \ 21,000 Direct labor hours 34 hours Units of product produced 200 What is the cost per unit of finished product of Job 13C? (Round your answer to the nearest cent.)

Cost accounting systems are used ________.

The journal entry to record allocation of manufacturing overhead to a particular job includes a ________.

Cost accounting systems are primarily concerned with accumulating product cost information.

For a service company,such as an accounting firm,each client is considered a job.

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 $675,000 and a total of 7500 billable hours for the year.All remaining office and administrative costs were estimated at $405,000.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 job order costing is used in the service industry,the allocation of indirect costs is normally based on machine hours.

Lake Country Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Lake Country has four public relations specialists plus an office staff.At the beginning of the year,Lake Country estimated the total cost of salaries and benefits for the public relations specialists at $672,000 and a total of 7000 billable hours for the year.The office and administrative costs were estimated at $406,000.The allocation base for office and administrative costs is billable hours.In June,Lake Country signed a contract for a Russian ballet performance.It negotiated a price of $6500 for its services.When the job was complete,Lake Country's records showed that it had logged 38.0 billable hours.What was the amount of gross profit that Lake Country made on the job?

When would raw materials associated with the building of a custom home be assigned to the job?

On January 1,Frederic Manufacturing had a beginning balance in Work-in-Process Inventory of $160,000 and a beginning balance in Finished Goods Inventory of $20,000.During the year,Frederic incurred manufacturing costs of $205,000. During the year,the following transactions occurred: Job C-62 was completed for a total cost of $140,000 and was sold for $158,000. Job C-63 was completed for a total cost of $181,000 and was sold for $213,000. Job C-64 was completed for a total cost $84,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $26,000 and was adjusted to zero at year-end. What was the final balance in the Cost of Goods Sold account?