Exam 19: Job Order Costing

Mira Financial Advisors provides accounting and finance assistance to customers in the retail business.Mira has four professionals on staff,plus an office with six clerical staff.Total compensation,including benefits,for the professional staff runs about $753,000 per year,and it normally has about 8,300 billable hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $575,000. Mira allocates office and administrative costs to clients monthly,using a predetermined overhead allocation rate based on billable hours.During July,Mira's professionals spent 38 hours on their client,Riley Sales.Mira adds a 25% markup on its costs to calculate the amount billed to the customer.How much should the company charge Riley Sales for the month of July? (Round your intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

On January 1,Biden,Inc.'s Work-in-Process Inventory account had a balance of $30,600.During the year,$58,300 of direct materials was placed into production.Manufacturing wages incurred amounted to $84,000,of which $64,500 were for direct labor.Manufacturing overhead is allocated on the basis of 120% of direct labor cost.Actual manufacturing overhead was $90,400.Jobs costing $220,500 were completed during the year.What is the December 31 balance of Work-in-Process Inventory?

Haverhill Products completed Job 440 and several other jobs during the year.In addition to direct labor and direct materials cost,Haverhill allocated $450 of manufacturing overhead to the job.Provide the journal entry for the allocation of manufacturing overhead.

Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 20% of the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows: What is the total cost incurred for Job 13C?

Which of the following businesses is most likely to use a process costing system?

The journal entry for adjustment of underallocated manufacturing overhead includes a ________.

The journal entry to record direct labor costs actually incurred involves a debit to the ________.

Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account.

Summit Financial Advisors provides accounting and finance assistance to customers in the retail business.Summit has four professionals on staff and an office with six clerical staff.Total compensation,including benefits,for the professional staff run about $731,000 per year,and it normally has about 8,500 billable hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $561,000. Summit allocates office and administrative costs to clients monthly,using a predetermined overhead allocation rate based on billable hours.During July,Summit's professionals spent 43 hours on their client.What is the total amount of cost that Summit will record for the client for the month? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

At the beginning of the year,Berkshire Manufacturing had the following account balances: The following additional details are provided for the year: Calculate the gross profit Berkshire will report for the year.

For a service company,such as an accounting firm,each client is considered a job.

On January 1,Frederic Manufacturing had a beginning balance in Work-in-Process Inventory of $161,000 and a beginning balance in Finished Goods Inventory of $24,000.During the year,Frederic incurred manufacturing costs of $203,000. During the year,the following transactions occurred: Job C-62 was completed for a total cost of $142,000 and was sold for $157,000. Job C-63 was completed for a total cost of $181,000 and was sold for $214,000. Job C-64 was completed for a total cost $84,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $25,000 and was adjusted to zero at year-end. What was the final balance in the Cost of Goods Sold account?

Midtown,Inc.uses a predetermined overhead allocation rate of $68 per direct labor hour.In January,the company completed Job A23 which utilized 24 direct labor hours.Which of the following correctly describes the journal entry to allocate overhead to the job?

For each of the following types of business,indicate why the manager needs to know the unit cost information.

Bacon Financial Advisors provides accounting and finance assistance to customers in the retail business.Bacon has four professionals on staff and an office with six clerical staff.Total compensation,including benefits,for the professional staff runs about $574,000 per year,and normal billable hours are 8,300 hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $754,000.What is the direct labor rate for the professional staff? (Round your answer to the nearest cent. )

Define a job order costing system and list two types of businesses that would us a job order costing system.

The journal entry to issue $500 of direct materials and $40 of indirect materials to production involves debit(s)to the ________.

At the beginning of the year,Green Street Manufacturing had the following account balances: The following additional details are provided for the year: After adjusting the balance in Manufacturing Overhead,the ending balance in the Finished Goods Inventory account is a ________.

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $318,000.The manufacturing overhead costs will be allocated based on direct labor hours.Gardner estimates 4,000 direct labor hours for the coming year.In January,Gardner completed Job A33,which used 70 machine hours and 20 direct labor hours.What was the amount of manufacturing overhead allocated to Job A33? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )