Exam 7: Job Costing

If a company multiplies its predetermined overhead rate by the actual activity level of its allocation base,it is using:

One difference between jobs and projects is the account titles used in the costing process.The main difference is the length of time to complete the work.

The following selected data were taken from the books of the Bixby Box Company.The company uses job costing to account for manufacturing costs.The data relate to June operations.A)Materials and supplies were requisitioned from the stores clerk as follows: Job 405,material X,$7,000.Job 406,material X,$3,000;material Y,$6,000.Job 407,material X,$7,000;material Y,$3,200.For general factory use: materials A,B,and C,$2,300.B)Time tickets for the month were chargeable as follows: C)Other information: Factory paychecks for $36,700 were issued during the month.Various factory overhead charges of $19,400 were incurred on account.Depreciation of factory equipment for the month was $5,400.Factory overhead was applied to jobs at the rate of $3.50 per direct labor hour.Job orders completed during the month: Job 405 and Job 406.Selling and administrative costs were $2,100.Factory overhead is closed out only at the end of the year.The end of the month Work-in-Process Inventory balance would be:

Complex jobs that take multiple time periods and require the work of many different departments,divisions,or subcontractors are called:

The financial records for the Lee Manufacturing Company have been destroyed in a fire.The following information has been obtained from a separate set of books maintained by the cost accountant.The cost accountant now asks for your assistance in computing the missing amounts. What is the value of the beginning Finished Goods Inventory?

In a traditional job order costing system,the issue of indirect materials to a production department increases: (CPA adapted)

Which of the following companies would most likely use job costing?

Accounting for direct materials and direct labor is easier than accounting for manufacturing overhead costs.This is because direct costs are traceable to jobs while overhead is allocated.

The following events took place at a manufacturing company for the current year: (1)Purchased $95,000 in direct materials.(2)Incurred labor costs as follows: (a)direct,$56,000 and (b)indirect,$13,600.(3)Other manufacturing overhead was $107,000,excluding indirect labor.(4)Transferred 80% of the materials to the manufacturing assembly line.(5)Completed 65% of the Work-in-Process during the year.(6)Sold 85% of the completed goods.(7)There were no beginning inventories.What is the value of the ending Work-in-Process Inventory?

Underapplied overhead occurs when the actual overhead costs incurred during a period are greater than the overhead costs applied during the period.An underapplied overhead situation occurs when the actual overhead incurred exceeds the applied overhead.

Scottso Corporation applies overhead using a normal costing approach based upon machine-hours.Budgeted factory overhead was $266,400,budgeted machine-hours were 18,500.Actual factory overhead was $287,920,actual machine-hours were 19,050.How much is the Over- or underapplied overhead?

The general journal entry to record the issuance of the materials represented by the following materials requisitions for the month includes:

Which terms will make the following statement true? When manufacturing overhead is overapplied,the Manufacturing Overhead account has a __________ balance and applied manufacturing overhead is greater than __________ manufacturing overhead.

The following are Mill Co.'s production costs for October: What amount of costs should be traced to specific products in the production process? (CPA adapted)

Scottso Corporation applies overhead using a normal costing approach based upon machine-hours.Budgeted factory overhead was $232,750,budgeted machine-hours were 17,500.Actual factory overhead was $227,830,actual machine-hours were 16,150.How much is the Over- or underapplied overhead?

The following events took place at a manufacturing company for the current year: (1)Purchased $95,000 in direct materials.(2)Incurred labor costs as follows: (a)direct,$56,000 and (b)indirect,$13,600.(3)Other manufacturing overhead was $107,000,excluding indirect labor.(4)Transferred 80% of the materials to the manufacturing assembly line.(5)Completed 65% of the Work-in-Process during the year.(6)Sold 85% of the completed goods.(7)There were no beginning inventories.What is the value of the ending Finished Goods Inventory?

Two jobs were worked on during the year: Job A-101 and Job A-102.The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000,respectively.The actual manufacturing overhead was $37,000.What was the amount of manufacturing overhead applied to Job A-101?

Birk Co.uses a job order costing system.The following debits (credits)appeared in Birk's work-in-process account for the month of April: Birk applies overhead to production at a predetermined rate of 80% of direct labor cost.Job No.5,the only job still in process on April 30 has been charged with direct labor of $2,000.What was the amount of direct material charged to Job No.5? (CPA adapted)

Service organizations,by their nature,cannot have a balance in Work-in-Process Inventory.A service may take several accounting periods to complete so there may very well be a Work-in-Process.

Scottso Corporation applies overhead using a normal costing approach based upon machine-hours.Budgeted factory overhead was $266,400,budgeted machine-hours were 18,500.Actual factory overhead was $287,920,actual machine-hours were 19,050.How much overhead would be applied to production?