Exam 5: Job-Order Costing

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 that instead of departmental rates, Blackfoot uses a plant-wide overhead rate that is based on direct labour hours. What is the predetermined overhead rate rounded to the nearest cent?

In job-order costing, the journal entry for a completed job costing $7,000 but NOT sold is: Finished Goods Inventory 7,000 Work-in-Process Inventory 7,000

When is the predetermined overhead rate usually calculated?

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 S1 to S2?

What costs are used in a normal job-order costing system?

Match each following terms with their correct description from the items listed below. -An overhead rate computed using estimated data

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

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 S2 to Department S1?

The cost of completed units is always debited to Work-in-Process Inventory and credited to Finished Goods Inventory.

Green Oak Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate that is based on direct labour hours. Estimations for the year include $420,000 in overhead and 30,000 direct labour hours. Green Oak worked on five jobs in March. Data are as follows: Job 89 Job 90 Job 91 Job 92 Job 93 Balance, 3/1 \ 23,110 \ 18,240 \ 9,510 \ 0 \0 Direct Materials 13,000 17,210 22,900 15,240 8,210 Direct Labour cost 8,075 11,500 16,250 9,750 4,860 Direct Labour Hours 1,615 2,300 3,250 1,950 972 By March 31, Jobs 89 and 91 were completed and sold. The rest of the jobs remained in process. A. Calculate the plantwide overhead rate. B. Calculate the Work-in-Process Inventory on March 31. C. Calculate the Cost of Goods Sold for March. D. Assume Green Oak marks up cost by 40%. What is the sales price of Jobs 89 and 91?

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 S1 to the Sewing Department?

On March 1, Job 492 had a beginning balance of $500. During March, direct materials of $700 and direct labour of $400 were added to the job. Overhead is applied to production at a rate of 60% of direct labour. There are ten units in Job 492. What is the unit cost?

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. What are the cost assignment ratios to be used under the direct method for Department S1?

Which method of measuring costs associated with production is more widely used in practice?

Which item may be listed on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Which of the following is an example of a producing department?

Solidwood Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Direct materials placed into production \ 9,000 Direct labour hours w orked 300 hours Direct labour rate per hour \ 15 Machine hours w orked 100 hours Manufacturing overhead rate is $22.50 per machine hour. -Refer to Solidwood Corporation. Suppose Job X4A consists of 500 units and one-half of Job X4A was sold for $10,000. What would be the cost per unit for Job X4A?

Which total cost is included in the unit cost of a job?

Which of the following is NOT a manufacturing cost?

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 that asks for the type, quantity, and unit cost of direct materials