Exam 3: Systems Design: Job-Order Costing

Burkhammer 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 $9,000. The company allocates any underapplied or overapplied 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. Required: Determine the cost of work in process, finished goods, and cost of goods sold AFTER allocation of the underapplied or overapplied overhead for the period.

Ivory Company uses a job-order costing system. What year-end journal entry could Ivory make to dispose of (close out) $4,150 of overapplied manufacturing overhead cost?

The Lee Company uses a job-order costing system. The following data were recorded for June: Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. -Lee's Work in Process inventory balance on June 30 was:

Gowin 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 overapplied by $13,000. The company allocates any underapplied or overapplied 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 overhead for September would include the following:

Gowin 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 overapplied by $13,000. The company allocates any underapplied or overapplied 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 finished goods inventory at the end of September after allocation of any underapplied or overapplied overhead for the month is closest to:

The following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be:

Maverick Company had the following transactions last year: -The cost of goods manufactured was:

During November, Jiminez 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.

Acer 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:

Job-order costing is used in those situations where units of a product are homogeneous, such as in the manufacture of sugar.

On July 1, Woolard Corporation had $20,000 of raw materials on hand. During the month, the company purchased an additional $53,000 of raw materials. During July, $49,000 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 $5,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: -The debits to the Raw Materials account for the month of July total:

Hirpara Inc. has provided the following data for July: 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.

Computing unit product costs involves averaging in:

The following partially completed T-accounts summarize transactions for Faas Company during the year: -The Cost of Goods Manufactured was:

The following partially completed T-accounts summarize last year's transactions for Kelshaw Company. At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold. -The cost of goods manufactured is:

Acer 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 predetermined overhead rate is closest to:

Madtack Company's beginning and ending inventories for the month of November were as follows: Madtack applies manufacturing overhead cost to jobs at the rate of 70% of direct labor cost incurred. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year. -Madtack Company's cost of goods manufactured for November was:

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

Madtack Company's beginning and ending inventories for the month of November were as follows: Madtack applies manufacturing overhead cost to jobs at the rate of 70% of direct labor cost incurred. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year. -Madtack Company's Cost of Goods Sold for November was:

In a job-order costing system, the use of indirect materials would usually be recorded as a debit to: