Exam 19: Job Order Costing

The journal entry to issue indirect materials to production should include a debit to the ________.

At the beginning of the year,Barrington Manufacturing had the following account balances: The following additional details are provided for the year: Record these transactions in the T-accounts and calculate the ending balances for Work-in-Process Inventory,Finished Goods Inventory,and Manufacturing Overhead accounts (unadjusted).

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

Caltran,Inc.completed manufacturing Job 445.It included $390 of direct materials cost,$1,220 of direct labor cost,and $500 of allocated manufacturing overhead.Which of the following is the correct journal entry needed to record the completed job?

When a job order costing system is used,actual manufacturing overhead costs are debited to ________.

The predetermined overhead allocation rate is the rate used to ________.

On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $80,400 and a beginning balance in Finished Goods Inventory of $22,000.During the year,Primary incurred manufacturing costs of $352,000. In addition,the following transactions occurred during the year: Job A-12 was completed for a total cost of $121,000 and was sold for $125,000. Job A-13 was completed for a total cost of $201,000 and was sold for $213,000. Job A-15 was completed for a total cost $64,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $11,000,and was adjusted to zero at year-end. What was the final balance in the Cost of Goods Sold account?

Oxford Manufacturing Company completed jobs that cost $48,000 to produce.In the same period, the company sold jobs for $102,000 that cost $53,000 to produce.Prepare the journal entries for the completion and sales of the jobs.All sales are on account.Omit explanations.

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

Littleton Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Littleton has four public relations specialists and office staff.At the beginning of 2016,Littleton estimated the total cost of salaries and benefits for the public relations specialists at $660,000 and a total of 7,500 billable hours for the year.The office and administrative costs were estimated at $390,000.The allocation base for office and administrative costs is billable hours.A new client is contracting with Littleton to promote a ballet tour in the United States Littleton estimates that the job will require 40 billable hours of specialist time.If Littleton wishes to have a 25% mark up on cost on the job,what price should Littleton quote to the client?

Which one of the following companies is most likely to use job order costing?

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: During the month,direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

Olympia Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,Olympia estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $830,000.In June,Job 511 was completed.The details of Job 511 are shown below. What is the amount of manufacturing overhead costs allocated to Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar. )

A process costing system is used when a company produces identical units through a series of production steps.

Cost accounting systems are used ________.

Pandora Manufacturing purchased $95,000 of raw materials on account and $5,000 of raw materials for cash.The materials will be used to produce furniture.Provide the journal entry for the purchase of materials.

Underallocated overhead occurs when ________.

At the end of the year,Martin,Inc.has an unadjusted credit balance in the Manufacturing Overhead account of $95.Provide the year-end adjusting entry needed to adjust the account.

Saber Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Saber has four public relations specialists and office staff.At the beginning of the year,Saber estimated the total cost of salaries and benefits for the public relations specialists at $403,900 and a total of 7,100 billable hours for the year.The office and administrative costs were estimated at $675,000.The allocation base for office and administrative costs is billable hours.What rate would Saber use for allocating the cost of its office and administrative staff? (Round your answer to the nearest cent. )

Mumbai Travel Services provided the following information: Direct labor rate: $40 per hour Predetermined overhead allocation rate for indirect costs: $30 per direct labor hour If Mumbai Travel earns $600 for a job requiring 8 hours of direct labor,then Mumbai Travel will make a profit of $40.