Exam 2: Job-Order Costing

Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours.Actual manufacturing overhead costs incurred during the year totaled $540,000.Actual direct labor-hours were 105,000.What was the overapplied or underapplied overhead for the year?

In a job-order costing system,the use of direct materials that have been previously purchased is recorded as a debit to:

Caryl Inc.has provided the following data for the month of March.There were no beginning inventories;consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $10,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process,finished goods,and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for March would include the following:

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

Hayne Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

Minturn Inc.has provided the following data for the month of September.There were no beginning inventories;consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $2,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process,finished goods,and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for September would include the following:

The following partially completed T-accounts summarize transactions for Fabatz Company during the year: -The manufacturing overhead applied was:

The process of assigning overhead cost to jobs is known as overhead application.

Joens Inc. has provided the following data for the month of July. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $2,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The cost of goods sold for July after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Entin Corporation reported the following data for the month of January: -The cost of goods manufactured for January is:

Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: -The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include:

The journal entry to record the incurrence of indirect labor costs is:

Brace Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 21,600 hours.At the end of the year,actual direct labor-hours for the year were 20,400 hours,the actual manufacturing overhead for the year was $506,920,and manufacturing overhead for the year was underapplied by $23,440.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

Echenko Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $380,000 and credited for $335,500. The ending balance in the Finished Goods inventory account was $62,300. At the end of the year, manufacturing overhead was overapplied by $2,900. -If the applied manufacturing overhead was $70,400,the actual manufacturing overhead cost for the year was:

On April 1, Stelter Corporation had $34,000 of raw materials on hand. During the month, the company purchased an additional $60,000 of raw materials. During April, $70,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $7,000. Prepare journal entries to record these events. Use these journal entries to answer the following questions: -The debits to the Work in Process account as a consequence of the raw materials transactions in April total:

Entin Corporation reported the following data for the month of January: -The direct materials cost for January is:

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.

Malcolm Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The cost records for September will show:

Reichelderfer Corporation has provided data concerning the company's Manufacturing Overhead account for the month of August.Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold,the total of the debits to the Manufacturing Overhead account was $50,000 and the total of the credits to the account was $72,000.Which of the following statements is true?

Crinks Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840.At the end of the year,actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840.Overhead at the end of the year was: