Exam 5: Job-Order Costing

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: Support Departments Producing Departments S1 2 Cutting Sewing Direct Costs \ 180,000 \ 150,000 \ 122,000 \ 90,500 Normal Activity: \# of employees - 30 63 147 Maintenance hours 1,200 - 16,000 4,000 -Refer to Quillen Company. Allocating S1 costs first, how much of the support department costs will be allocated from Department S2 to the Cutting Department?

Which costs are easy to trace to individual jobs?

Valley Water Slides Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected: Job 812 Job 813 Job 814 Job 815 Job 816 9/1 Balance \ 615 \ 830 \ 945 --- --- Direct Materials 750 235 1,280 \ 200 \ 915 Direct Labour 420 115 560 320 875 Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse. -Refer to Valley Water Slides. What is the Cost of Goods Sold for September?

Match each following terms with their correct description from the items listed below. -An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

In an actual cost system, actual direct materials, actual direct labour and actual overhead are used to calculate the unit cost.

Match each following terms with their correct description from the items listed below. -A costing system that accumulates production costs by process by department for a given period of time

In job-order costing, the journal entry for overhead applied at the rate of $3 per direct labour hour when 210 direct labour hours were worked is: Work-in-Process Inventory 630 Applied Overhead 630

Big Red Truck Company designs and builds fire trucks. During June, it had applied overhead of $125,000. Overhead is applied at the rate of 80% of direct labour cost. Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Overhead costs are assigned to Work-in-Process Inventory using a predetermined rate.

The three manufacturing cost elements are direct materials, direct labour, and overhead.

Budgeted overhead is $40,000, budgeted direct labour hours are 2,000, actual overhead is $40,400, and direct labour hours are 3,230. Unadjusted Cost of Goods Sold is $140,800. Calculate the following: A. Calculate the overhead variance. B. Assuming the variance is insignificant, calculate adjusted Cost of Goods Sold.

What schedule is used to ensure accuracy in computing product costs?

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Form filled out by each employee every day

Giant Company is a job-order costing company that produces customized bicycles. During the month of October, Giant had three jobs in-process, Job 50cm, Job 56cm, and Job 60cm. By the end of the month, all three jobs had been completed, with Job 60cm being sold for $484.50. The following costs belong to each job: Job 50 Job 56 Job 60 Direct Materials \ 90 \ 85 \ 95 Direct Labour 100 110 95 Applied Overhead 140 154 133 Total \3 30 \3 49 \3 23 A. Overhead is applied based on direct labour dollars. Calculate the overhead rate. B. What rate does Giant use to price its jobs? C. Calculate the gross margin on Job 60cm.

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: Support Departments Producing Departments S1 2 Cutting Sewing Direct Costs \ 180,000 \ 150,000 \ 122,000 \ 90,500 Normal Activity: \# of employees - 30 63 147 Maintenance hours 1,200 - 16,000 4,000 -Refer to Quillen Company. Allocating S1 costs first, what are the cost assignment ratios to be used under the sequential method for Department S2?

Blackfoot Softball Glove Company Blackfoot Softball Glove Company estimated the following yearly data at the beginning of the year: Assembly Department Testing Department Total Overhead \ 570,000 \ 130,000 \ 700,000 Direct Labour Hours 142,500 32,500 175,000 Machine Hours 32,000 65,000 97,000 The company uses departmental overhead rates. In the assembly department, direct labour hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.Actual data for August are as follows: Assembly Testing Total Department Department Overhead \ 42,000 \ 12,000 \ 54,000 Direct Labour Hours 13,500 2,430 15,930 Machine Hours 4,020 11,000 15,020 -Refer to Blackfoot Softball Glove Company. Suppose the company decides to continue using departmental overhead rates. What are the predetermined rates for the assembly and testing departments, respectively?

If the overhead variance is insignificant, it is allocated among the ending balances of Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.

Match each following terms with their correct description from the items listed below. -The amount by which applied overhead exceeds actual overhead

If actual overhead for the year is $33,451 and applied overhead is $32,000, is the overhead variance overapplied or underapplied? Prepare the journal entry necessary to reconcile overhead. Assume the variance is insignificant.

Refer to Michelle's. What is the journal entry to record actual overhead for the month?