Exam 2: Job-Order Costing

During August,Allee Corporation incurred $64,000 of actual Manufacturing Overhead costs.During the same period,the Manufacturing Overhead applied to Work in Process was $66,000. Required: Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

Valles Corporation had $22,000 of raw materials on hand on February 1.During the month,the company purchased an additional $75,000 of raw materials.The journal entry to record the purchase of raw materials would include a:

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. -The applied manufacturing overhead for the year is closest to:

Vandagriff Corporation has provided data concerning the company's Manufacturing Overhead account for the month of June.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 $77,000 and the total of the credits to the account was $64,000.Which of the following statements is true?

Hirschman Corporation has provided the following data for the month of April: Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. -The overhead for the year was:

During September,Paliotta Corporation recorded the following: Required: Prepare T-accounts for Raw Materials,Work in Process,Finished Goods,and Manufacturing Overhead,and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally,determine the ending balances.

The following partially completed T-accounts summarize transactions for Fabatz Company during the year: -The direct labor cost was:

A job cost sheet is used to accumulate costs charged to a job.

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 Manufacturing Overhead account as a consequence of the raw materials transactions in April total:

Lyster Inc.has provided the following data for the month of August.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 $1,000. 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 work in process inventory at the end of August after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during August.During the same period,the Manufacturing Overhead applied to Work in Process was $75,000.The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Vanwagenen Inc. has provided the following data for the month of April: -The cost of goods manufactured for April is:

A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be:

Lenci Inc. has provided the following data for the month of May. 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 $3,000. 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 work in process inventory at the end of May after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Wahr Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the labor-hours for the upcoming year at 32,000 labor-hours.The estimated variable manufacturing overhead was $7.17 per labor-hour and the estimated total fixed manufacturing overhead was $584,320.The actual labor-hours for the year turned out to be 33,300 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year.

Leija Manufacturing Company uses a job-order costing system and started the month of March with one job in process (Job #359). This job had $500 of cost assigned to it at this time. During March, Leija assigned production costs as follows to the jobs worked on during the month: During March, Leija completed and sold Job #359. Job #360 was also completed but was not sold by month end. Job #361 was not completed by the end of March. -What is Leija's work in process inventory balance at the end of March?

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 journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for July would include the following:

Shapiro Corporation has provided the following data for the most recent month: Required: Prepare T-accounts for Raw Materials,Work in Process,Finished Goods,Manufacturing Overhead,and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally,determine the ending balances.

The operations of the Kerry Company resulted in underapplied overhead of $5,000.The entry to close out this balance to Cost of Goods Sold and the effect of the underapplied overhead on Cost of Goods Sold would be: