Exam 3: Systems Design: Job-Order Costing

Rinks Inc. has provided the following data for the month of December. 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 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 December would include the following:

Munos Publishing Company uses a job-order costing system to collect costs related to the manufacture of specialty publications for corporate training. -What journal entry would Munos make to record $9,500 of depreciation on its printing presses?

Rappaport Corporation reported the following data for the month of February: -The direct materials cost for February is:

During December, Fleeger Corporation incurred $51,000 of direct labor costs and $5,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

During May, Sarkin Corporation incurred $69,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $73,000. Required: Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

During August at Schlappi Corporation, $80,000 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 $2,000. The journal entry to record this requisition would include a debit to Manufacturing Overhead of:

The Allen Company uses a job-order costing system. The following activity took place during the month of March: Required: Prepare journal entries to record the information above. Key your entries by the letters a through i. Assume all purchases are made on account.

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

Alvernaz Inc. has provided the following data for the month of April. 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 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 April after allocation of any underapplied or overapplied overhead for the month is closest to:

Predetermined overhead rates are based on actual cost and activity data.

Jupiter 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 $2,000. 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 August after allocation of any underapplied or overapplied overhead for the month is closest to:

In December, Perone Inc. incurred $78,000 of direct labor costs and $4,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct labor cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company: -The entry to dispose of the underapplied or overapplied overhead cost for the month would include:

Molano Corporation has provided the following data concerning manufacturing overhead for June: The company's Cost of Goods Sold was $255,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?

Pitzer Corporation, a manufacturing company, has provided data concerning its operations for March. The beginning balance in the raw materials account was $29,000 and the ending balance was $38,000. Raw materials purchases during the month totaled $74,000. Manufacturing overhead cost incurred during the month was $106,000, of which $7,000 consisted of raw materials classified as indirect materials. The direct materials cost for March was:

Munos Publishing Company uses a job-order costing system to collect costs related to the manufacture of specialty publications for corporate training. -What journal entry would Munos make to record the application of $1,200 of manufacturing overhead to Job KN672?

In order to improve the accuracy of unit costs, most companies recompute the predetermined overhead rate each month.

The following journal entry would be made to apply overhead cost to jobs in a job-order costing system:

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 indirect labor cost is:

Ramil 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.