Exam 5: Job-Order Costing

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. -Costs of a job are transferred from Work-in-Process Inventory to Finished Goods Inventory

HiTech Housing HiTech Housing uses job-order costing. At the end of the month, the following data were gathered: Job \# Total Cost Complete? Sold? 529 \ 409 no no 530 \ 513 yes no 531 \ 115 no no 532 \ 790 yes yes 533 \ 650 yes no 534 \ 540 no no 535 \ 90 no no 536 \ 970 yes yes 537 \ 179 no no 538 \ 400 no no Sales price is cost plus 50% for each of its houses. -Refer to HiTech Housing. What is the cost of goods sold for the month?

Xbin Incorporated estimated overhead to be $440,000 and direct labour hours to be 100,000 for the year. Actual direct labour ended up being 120,000 hours. Actual overhead for the year amounted for $500,000. A. Calculate the predetermined overhead rate. B. Calculate the applied overhead for the year. C. Calculate the amount of under- or over-applied overhead at the end of the year.

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

At the beginning of the year, Healthworks Company estimated the following for the coming year: Overhead $420,000 Direct labour hours 70,000 Healthworks used normal costing and applies overhead on the basis of direct labour hours. For the month of May, direct labour hours equalled 10,300 and actual overhead equalled $56,750. What is the overhead applied to production in May?

Which account can sometimes be skipped when a good is produced for a particular customer?

Which statement best describes a characteristic of the job-order cost sheet?

Rally Point Inc.Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. The company uses job-order costing to track its costs. In January, the company worked on three jobs. Data for these jobs are as follows: Job 100 Job 200 Job 300 Balance 1/1 \ 13,790 \ 0 \0 Direct Materials 16,200 8,500 30,500 Direct Labour Cost 23,300 7,600 45,000 Machine Hours 400 300 2,000 Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of Finished Goods Inventory on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. The company sells its product at cost plus 40%. -Refer to Rally Point, Inc. What is the sales revenue for January?

In job-order costing, the journal entry for $7,200 raw materials requisitioned for use in production is: Raw Materials Inventory 7,200 Work-in-Process Inventory 7,200

Which of the following is NOT on a time ticket?

The BeautyWorks Corporation manufactures custom-made purses. The following data pertains to Job AAA: Direct materials placed into production $4,000 Direct labour hours worked 60 hours Direct labour rate per hour $15 Machine hours worked 100 hours Manufacturing overhead is applied using a plantwide rate that is based on direct labour hours. Manufacturing overhead was budgeted at $120,000 for the year, and the direct labour hours were estimated to be 30,000. Job AAA consists of 50 units. What is the overhead cost assigned to Job AAA?

Which cost is NOT included on a job-order cost sheet?

Departmental overheads can be added together to get plantwide overhead.

The use of normal costing means that actual overhead costs are NOT assigned directly to jobs.

Which type of business is most likely to use a job-order costing system?

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 S1?

Which department provides essential services to producing departments?

When materials are put into production, they are taken from the Raw Materials Inventory account and put into the Work-in-Process Inventory account.

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 the Cutting Department?

Which accounts are affected when a job is completed and remains in inventory?