Exam 19: Job Order Costing

At the beginning of the year,Rupert Manufacturing had the following account balances: The following additional details are provided for the year: The remaining balance of Manufacturing Overhead was adjusted to zero.Calculate the ending balances in Work-in-Process Inventory,Finished Goods Inventory,Manufacturing Overhead (unadjusted),and Cost of Goods Sold (after adjustment. )

On January 1,Jackson,Inc.'s Work-in-Process Inventory account showed a balance of $65,800.During the year,materials requisitioned for use in production amounted to $71,900,of which $67,600 represented direct materials.Factory wages for the period were $210,000 of which $187,000 were for direct labor.Manufacturing overhead is allocated on the basis of 60% of direct labor cost.Actual overhead was $116,340.Jobs costing $353,200 were completed during the year.The December 31 balance in Work-in-Process Inventory is ________.

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.25 per machine hour.Actual overhead costs incurred during the year are as follows: What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

The actual direct labor costs are assigned to individual jobs,and the actual direct labor cost is recorded with a debit to Work-in-Process Inventory.

Highland,Inc. ,an engineering firm,uses a job order costing system to accumulate client-related costs.The predetermined overhead allocation rate is 50% of staff labor cost.The work by engineers is charged to jobs at a rate of $33 per staff labor hour.A recent job for a client used 70 staff labor hours.How much was the total job cost?

Norman Manufacturing reports the following data for the month: Journalize the entries relating to materials and labor.Omit explanations.

On June 1,Westbrook Productions had beginning balances as shown in the T-accounts below. During June,the following transactions took place: June 2: Issued $3,100 of direct materials and $300 of indirect materials to production. June 13: Incurred $7,500 of direct factory labor cost and $14,500 of indirect factory labor cost. What was the balance in the Manufacturing Overhead account following these transactions?

Metropolitan Enterprises reports the following information at December 31: Requirements 1.What is the actual manufacturing overhead of Metropolitan Enterprises? 2.What is the allocated manufacturing overhead? 3.Is manufacturing overhead underallocated or overallocated? By how much?

At the beginning of the year,Tea Tree Manufacturing had the following account balances: The following additional details are provided for the year: The unadjusted balance in the Manufacturing Overhead account is a ________.

The Carlin Fabrication Plant suffered a fire incident at the beginning of the year,which resulted in the loss of property including the accounting records.Some data for the year were retrieved,and extracts from it are shown below: The company's manufacturing overhead allocation is based on the number of machine hours.What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Altima,Inc.finished Job A40 on the last working day of the year.It utilized $300 of direct materials and $3,380 of direct labor.Altima uses a predetermined overhead allocation rate based on a percentage of direct labor costs,which has been fixed at 40%.The entry to record the completion of the job should involve a ________.

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

At the beginning of the year,Conway Manufacturing had the following account balances: The following additional details are provided for the year: The ending balance in the Work-in-Process Inventory account is a ________.

Which of the following would use a process costing system rather than a job order costing system?

Lake Country Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Lake Country has four public relations specialists plus an office staff.At the beginning of the year,Lake Country estimated the total cost of salaries and benefits for the public relations specialists at $656,000 and a total of 8,000 billable hours for the year.The office and administrative costs were estimated at $392,000.The allocation base for office and administrative costs is billable hours.In June,Lake Country signed a contract for a Russian ballet performance.It negotiated a price of $6,700 for its services.When the job was complete,Lake Country's records showed that it had logged 37.5 billable hours.What was the amount of gross profit that Lake Country made on the job?

Both job order and process costing systems use a four-step method to track product costs.List each of the four steps.

Patrick Manufacturing Systems uses job order costing and a perpetual inventory system.When recording the sale of a job,which account(s)is(are)credited?

The journal entry to record $1,600 of direct labor and $250 of indirect labor incurred will include debit(s)to the ________.

On June 30,Cleopatra,Inc.finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Cleopatra completed the sale of the goods to a customer for $55,000 on account.Provide the journal entry to record the sales revenue.

Which of the following statements is true of costing systems?