Exam 3: Job-Order Costing

Feltman Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for July: The cost of goods manufactured for July is closest to:

Beland Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In December the company completed job K79D that consisted of 23, 000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job K79D shows the following costs: During the month, the actual manufacturing overhead cost incurred was $427, 570 and 5, 000 completed units from job K79D were sold.No other products were sold during the month. Required: Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead)for December.Show your work!

Farber Corporation uses a job-order costing system.The information below is from the financial records of the company for last year: Applied overhead was 30% of total manufacturing costs.The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. Farber Corporation's total direct labor cost was:

Radziewicz Inc.uses a job-order costing in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company's cost of goods manufactured for December was $128, 000 and its beginning and ending inventories were: During the month, the manufacturing overhead cost incurred was $66, 000 and the manufacturing overhead cost applied was $69, 000. Required: Determine the cost of goods sold that would appear on the income statement for December;in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.Show your work!

Caber Corporation applies manufacturing overhead on the basis of machine-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60, 600.Actual manufacturing overhead for the year amounted to $59, 000 and actual machine-hours were 5, 900.The company's predetermined overhead rate for the year was $10.10 per machine-hour. The applied manufacturing overhead for the year was closest to:

Job 397 was recently completed.The following data have been recorded on its job cost sheet: The company applies manufacturing overhead on the basis of direct labor-hours.The predetermined overhead rate is $37 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.

If direct labor-hours is used as the allocation base in a job-order costing system, but overhead costs are not caused by direct-labor hours, then jobs with high direct labor requirements will tend to be undercosted relative to jobs with low direct labor requirements.

If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be underapplied.

Lupkes Inc. , which uses job-order costing, has provided the following data for October: Required: Determine the unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead)for October.Show your work!

Crombie Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for June: The cost of goods manufactured for June is closest to:

Colbath Inc. , which uses job-order costing, has provided the following data for July: Required: Determine the unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead)for July.Show your work!

Christofferse Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: Required: Compute the company's predetermined overhead rate for the recently completed year.

The most common accounting treatment of underapplied manufacturing overhead is to transfer it to the Manufacturing Overhead Incurred account.

The cost of goods manufactured for a period includes only the costs of units that are completed during the period.

Cost of goods sold equals beginning finished goods inventory, plus cost of goods manufactured, less ending finished goods inventory.

Pac Inc.uses a job-order costing system in which any underapplied or overapplied overhead for the period is closed out to cost of goods sold.In May the company completed job I07W that consisted of 20, 000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job I07W shows that the total cost for the job was $1, 054, 000.During the month, the actual manufacturing overhead cost incurred was $304, 600 and the manufacturing overhead cost applied to job I07W was $292, 000.And during the month, 7, 000 completed units from job I07W were sold.No other products were sold. Required: Determine the cost of goods sold that would appear on the income statement for May.Show your work!

Job 231 was recently completed.The following data have been recorded on its job cost sheet: The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $11 per machine-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.

Manufacturing overhead is overapplied if actual manufacturing overhead costs for a period are greater than the amount of manufacturing overhead cost that was charged to Work in Process.

Buth Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.During May, the cost of goods manufactured was $145, 000 and manufacturing overhead was overapplied by $3, 000.The beginning finished goods inventory was $47, 000 and the ending finished goods inventory was $49, 000. The cost of goods sold that appears on the income statement for May and that has been adjusted for any underapplied or overapplied overhead is closest to:

Mcadams Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In April the company completed job C21F that consisted of 18, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost on job C21F's job cost sheet was $702, 000.The manufacturing overhead for the month was underapplied by $10, 080.During the month, 13, 000 completed units from job C21F were sold.No other products were sold during the month. The cost of goods sold that would appear on the income statement for April, after adjustment for any underapplied or overapplied overhead, is closest to: