Exam 19: Job Order Costing

The predetermined overhead allocation rate for a given production year is calculated ________.

Connecticut Manufacturing began business on January 1.During its first year of operation,Connecticut worked on five industrial jobs and reported the following information at year-end: Connecticut's allocation of overhead costs left a debit balance of $1,300 in the Manufacturing Overhead account,which was adjusted to zero at year-end.What was the final balance in Cost of Goods Sold for the year ended December 31?

The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.

South Bay Manufacturing began business on January 1.During its first year of operation,South Bay worked on five industrial jobs and reported the following information at year-end: South Bay's allocation of overhead costs left a debit balance of $1,100 in the Manufacturing Overhead account,which was adjusted to zero at year-end.What was the amount of gross profit earned during the year?

Specialty Wood Products,Inc.had the following manufacturing labor costs last month: Provide the journal entry to record the labor costs incurred,which will be paid at a later date.

Which of the following correctly describes the term cost driver?

Halcyon,Inc.completed Job 10B last month.The cost details of Job 10B are shown below. Calculate the total job cost for Job 10B.

Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours.At the beginning of the year,it estimated total manufacturing overhead costs to be $1,000,000,total number of direct labor hours to be 4,500,and total number of machine hours to be 26,000 hours.What was the predetermined overhead allocation rate? (Round your answer to the nearest cent. )

Davie,Inc.used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,100,000 in establishing its predetermined overhead allocation rate for the year.Actual results showed the following: What was the number of direct labor hours worked during the year? (Round any intermediate calculations to two decimal places,and your final answer to the nearest whole number. )

Jeremy Corporation estimated manufacturing overhead costs for the year to be $490,000.Jeremy also estimated 7,000 machine hours and 1,000 direct labor hours for the year.It bases the predetermined overhead allocation rate on machine hours.On January 31,Job 25 was completed.It required 4 machine hours and 6 direct labor hours.What is the amount of manufacturing overhead allocated to the completed job? (Round your answer to the nearest dollar. )

Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost.The manufacturing overhead cost allocated during the year is $280,000.The details of production and costs incurred during the year are as follows: What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places. )

SES Manufacturing has finished production activities for the year.The company allocates manufacturing overhead based on a percentage of direct labor costs.The company has provided the following information: Based on the above data,calculate the unadjusted ending balance in the Manufacturing Overhead account.

The entry to record the purchase of direct materials on account would include a ________.

Island Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Island has four public relations specialists and office staff.At the beginning of the year,Island estimated the total cost of salaries and benefits for the public relations specialists at $663,000 and a total of 7,800 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.In June,Island signed a contract for a Russian ballet performance.It negotiated a price of $6,300 for its services.When the job was complete,Island's records showed that it had logged 37.0 billable hours.What was the actual total cost of the job for Island?

At the end of the year,Delta,Inc.has an unadjusted debit balance in the Manufacturing Overhead account of $3,950.Provide the year-end adjusting entry needed to adjust the account.

Pluto Travel Services provided the following information: Direct labor rate: $45 per hour Predetermined overhead allocation rate for indirect costs: $24 per direct labor hour Pluto is negotiating a job with a new client.The job will require 10 hours of direct labor.If Pluto wishes to have at least a 15% gross profit on the revenues,it needs to earn $716 of revenues.

When job order costing is used in the service industry,the allocation of indirect costs is normally based on machine hours.

Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.

Forsyth,Inc.uses estimated direct labor hours of 240,000 and estimated manufacturing overhead costs of $1,150,000 in establishing its predetermined overhead allocation rate for the year.Actual results showed the following: The number of direct labor hours worked during the period was ________.(Round any intermediate calculations to two decimal places,and your final answer to the nearest whole number. )

For each of the following accounts,indicate what event causes the account to increase and to decrease.The answer is not debit or credit.