Exam 5: Job-Order Costing

Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected: Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse. Job 812 Job 813 Job 814 Job 815 Job 816 9/1 ance \ 615 \ 830 \ 945 \ldots \ldots Direct Materials 750 235 1,280 \ 200 \ 915 Direct Labour 420 115 560 320 875 -Refer to the Figure.What is the ending balance in work in process as of September 30?

The cost of goods sold appearing on the income statement as an expense is the normal cost of goods sold.

Whitney Company uses a predetermined rate to apply overhead.At the beginning of the year,Whitney estimated its overhead costs at $280,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $289,000,actual direct labour hours were 41,000,and actual machine hours were 11,000. Suppose the predetermined overhead rate is based on machine hours.What would be the total amount credited to the factory overhead account for the year for Whitney?

Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. Rally Point uses job-order costing to track its costs. In January, Rally Point worked on three jobs. Data for these jobs are as follows: Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of finished goods on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. Rally Point sells its product at cost plus 40%. Job 100 Job 200 Job 300 Balance 1/1 \ 13,790 \ 0 \ 0 Direct Materials 16,200 8,500 30,500 Direct Labour Cost 23,300 7,600 45,000 Machine Hours 400 300 2,000 -Refer to the Figure.What is the sales revenue for January?

At the beginning of the year, Rovetti, Inc. estimated that in the coming year overhead would be $600,000 and direct labour hours would be 200,000. At the end of the year, it had actual overhead of $656,000 and 225,050 direct labour hours. -Refer to the Figure.What is the predetermined overhead rate?

Match each item with the correct statement below. -The amount by which actual overhead exceeds applied overhead

Which of the following is a characteristic of job-order costing?

Departmental overheads can be added together to get plantwide overhead.

Which of the following items may be listed on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Match the following cost flows with the proper event in a job-costing firm: -Actual overhead is reconciled with applied overhead

If actual overhead is greater than applied overhead,the variance is called underapplied overhead.

The journal entry for overhead applied at the rate of $3 per direct labour hour when 210 direct labour hours were worked is: Work in Process 630 Applied Overhead 630

Which of the following costs poses the most problems when using an actual cost system?

Refer to Baldwin,Inc.Prepare the journal entries reflecting the completion and sale on account of Job 12.The selling price is 160% of cost.

Which of the following can serve as a subsidiary for the finished goods inventory?

Which of the following types of businesses is most likely to use a job order costing system?

Which of the following statements about a job-order costing is correct?

In job-order costing,the journal entry for overhead applied at the rate of $3 per direct labour hour when 210 direct labour hours were worked is: Work in Process 630 Applied Overhead 630

Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected: Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse. Job 812 Job 813 Job 814 Job 815 Job 816 9/1 ance \ 615 \ 830 \ 945 \ldots \ldots Direct Materials 750 235 1,280 \ 200 \ 915 Direct Labour 420 115 560 320 875 -Refer to the Figure.What is John's operating income for the month of September?

Canadian Doll Company had the following overhead costs and production for two months.The dolls are identical to each other. October February Actual Overhead \ 12,000 \ 12,000 Number of Dolls 4,000 3,000 A. What is the overhead cost per doll per month? B. What type of costing is being used here, and what is the problem with this type that is presented here?