Exam 19: Job Order Costing

Aaron,Inc.estimates direct labor costs and manufacturing overhead costs for the coming year to be $780,000 and $510,000,respectively.Aaron allocates overhead costs based on machine hours.The estimated total labor hours and machine hours for the coming year are 19,000 hours and 7,000 hours,respectively.What is the predetermined overhead allocation rate? (Round your answer to the nearest cent. )

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours.It has provided the following information for the year: Based on the above information,calculate the predetermined overhead allocation rate applied by Felton Quality.(Round your answer to the nearest cent. )

Dezire Travel Services provided the following information: Direct labor rate: $87 per hour Predetermined overhead allocation rate for indirect costs: $23 per direct labor hour If Dezire earns $1,900 for a job requiring 10 hours of direct labor,then Dezire will make a profit of $1,030.

Neptune Accounting Services expects its accountants to work for 28,000 direct labor hours per year.The company's estimated total indirect costs are $220,000.The direct labor rate is $70 per hour.The company uses direct labor hours as the allocation base for indirect costs.If Neptune performs a job requiring 20 hours of direct labor,what is the total job cost? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

The records at Smith and Jones,Inc.show that Job 110 is charged with $12,000 of direct materials and $11,000 of direct labor.Smith and Jones,Inc.allocate manufacturing overhead at 85% of direct labor cost.What is the total cost of Job No.110?

Warren Manufacturing began business on January 1.During its first year of operation,Warren worked on five industrial jobs and reported the following information at year-end: What was the balance in Finished Goods Inventory at year-end?

Which of the following describes the allocation base for allocating manufacturing overhead costs?

Manufacturing overhead costs allocated to a job amounted to $491,000.The actual manufacturing costs incurred during the year were $580,000.Overhead costs have been underallocated.

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours.It has provided the following information for the year: Based on the above information,calculate Q-dot's predetermined overhead allocation rate.(Round your answer to two decimal places. )

On June 30,Coral,Inc.finished Job 750 with total job costs of $4,200,and transferred the costs to Finished Goods Inventory.On July 6,it completed the sale of the goods to a customer for $5,900 cash.Which of the following is the correct journal entry to record the cost of goods sold?

The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.

Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs.The production details for the year are given below: Calculate the manufacturing overhead allocation rate for the year based on the above data.(Round your final answer to two decimal places. )

Jezebel,Inc.completed Job 12 and several other jobs in the last week.The cost details of Job 12 are shown below. What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent. )

Kalliste,Inc.completed Job C50.Job C50 required $3,000 of direct materials cost,$2,000 of direct labor cost,and $600 of allocated manufacturing overhead.Provide the journal entry needed to record completion and transfer of the job.

Journalize the following transactions for Malone Custom Furniture Manufacturing: a.Incurred and paid advertising expenses,$3,500. b.Incurred manufacturing wages of $30,000,60% of which was direct labor and 40% of which was indirect labor. c.Purchased raw materials on account,$27,000. d.Used in production: direct materials,$12,000;indirect materials,$5,500 e.Recorded manufacturing overhead: depreciation on plant,$14,000;plant insurance (previously paid),$1,800;plant property tax,$4,500 (credit Property Tax Payable). f.Allocated manufacturing overhead to jobs,150% of direct labor costs. g.Completed production on jobs with costs of $55,000. h.Sold inventory on account,$64,000;cost of goods sold,$35,000. i.Adjusted for overallocated or underallocated overhead.

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 $658,000 and a total of 7,000 billable hours for the year.All remaining office and administrative costs were estimated at $392,000.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?

On January 1,Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $82,400 and a beginning balance in Finished Goods Inventory of $20,500.During the year,Feldstein incurred manufacturing costs of $350,700. During the year,the following transactions occurred: Job A-12 was completed for a total cost of $120,000 and was sold for $125,500. Job A-13 was completed for a total cost of $200,100 and was sold for $210,800. Job A-15 was completed for a total cost $66,000 but was not sold as of year-end. What was the balance in Finished Goods Inventory at the end of the year?

Job order costing is well suited for the service industry.

When raw materials are requisitioned for a job,the Raw Materials Inventory account is debited.

At the end of the year,Metro,Inc.has an unadjusted credit balance in the Manufacturing Overhead account of $750.Which of the following is the year-end adjusting entry needed to adjust the account?