Exam 7: Job Costing

Scottso Corporation applies overhead using an actual costing approach.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?

Before prorating the manufacturing overhead costs at the end of 2012,the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 in them,respectively.There was no Work-in-Process at the beginning or end of 2012.During the year,manufacturing overhead costs of $74,000 were actually incurred.The balance in the Applied Manufacturing Overhead was $77,500 at the end of 2012.If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts,how much will be the Cost of Goods Sold after the proration?

The journal entry to write-off an insignificant overapplied overhead balance at the end of an accounting period for a service firm is:

For which of the following businesses would a job order cost system be appropriate?

Actual costing does not use a predetermined overhead rate to apply manufacturing overhead costs to jobs completed during the period.The application rate is based on the actual costs incurred during the period.

The journal entry to record the completion of a job in a job costing system is:

Job shops have three types of inventory accounts: Direct Materials,Work-in-Process,and Finished Goods.This is a correct statement as far as inventory accounts.

Which of the following documents is used as the basis for posting to the direct materials section of the job cost sheet?

It is unethical to intentionally charge costs to the wrong job.It is unethical to knowingly do something wrong.

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 is the predetermined manufacturing overhead rate per direct labor hour for the year?

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 journal entry to record the direct labor costs for the period?