Exam 5: Job-Order Costing

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company: Date started: July 5 Date completed: August 21 July 5 \ 3,000 July 15 \ 900 \ 450 July 17 1,500 July 22 1,350 675 August 1 1,500 August 21 600 300 Job 101 was sold on account on August 25 for 160% of its cost. Required: A. Prepare the journal entries to record the costs incurred for Job 101 in the current year for direct materials, direct labour, and manufacturing overhead (for simplicity, ignore the dates). B. Prepare the journal entry to record the completion of Job 101. C. Calculate the predetermined manufacturing overhead rate for Scott. D. Prepare the journal entries to record the sale of Job 101.

The Cost of Goods Sold appearing on the income statement as an expense is the normal Cost of Goods Sold.

What form requires the job number and the type, quantity, and unit cost of direct materials issued?

Which statement describes a characteristic of costing?

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 ending balance in Work-in-Process Inventory as of September 30?

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. Using the direct method, how much of the support department costs will be allocated from Department S1 to the Sewing Department?

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. Using the direct method, how much of the support department costs will be allocated from Department S1 to Department S2?

Discuss overapplied and underapplied overhead.

Refer to Company Inc. What is the overhead applied for January?

Ending Work-in-Process Inventory for Hands On Carpentry was $64,000 for January. Direct labour and direct materials for the month had a combined total of $39,000. Direct labour was twice as much as direct materials. The overhead rate is 70% of direct labour. No jobs were finished during the month. What was the beginning Work-in-Process Inventory?

There are other source documents besides the time ticket and the material requisition form used to fill out the job-order cost sheet.

When using normal costing, which costs never enter the Work-in-Process Inventory account?

Which method assigns support department costs only to producing departments, in proportion to each department's usage of the service?

There are two major types of companies for costing purposes: those that use a job-order costing system and those that use process costing systems. A. Explain the differences between the two types of systems. B. List 3 examples of each type of company.

Which statement best describes manufacturing overhead?

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 sales price of Job 816?

Match each following cost flows with their corresponding job-costing event 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. -Insignificant overhead variance closed to costs of goods

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. Suppose the beginning balance of Finished Goods Inventory was $0. What is the ending balance of Finished Goods Inventory?

Which account is usually credited when the Work-in-Process Inventory account is debited for direct labour?

In normal costing, how are direct materials, direct labour, and overhead costs assigned?