Exam 3: Job Costing, Process Costing, and Operations Costing

Collins Inc. applies overhead using direct labor hours. The following data are available for the year: What predetermined overhead rate did Collins use?

Martin Manufacturing assigns overhead to jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $250,000 and estimated machine hours were 50,000. During the year, 150 machine hours were used on Job #108. By the end of the year, actual overhead costs were calculated to be $232,500 and actual machine hours were 5,000. How much overhead was applied to Job #108 during the year?

In its initial year of operation, Montoya Manufacturing started and completed 4,000 identical widgets and had 1,000 widgets that were 40% complete in work-in-process at the end of the year. Total production costs for the year were $55,000. What is the cost per equivalent unit?

The formula for calculating the amount of applied overhead to a product is:

Costs associated with factory insurance, maintenance, rent, property taxes, and other similar items are typically included in manufacturing overhead and assigned to products:

Robinson Products uses the weighted-average method of process costing. The following information was available for the current year: Required:

Jet Products had no units in process at the beginning of the year. Jet uses process costing and has calculated 47,000 total equivalent units completed during the year. If there were 53,000 units started in the current period and 10,000 units in ending work-in-process, what percentage complete were the ending inventory units?

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year: Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost of ending work-in-process inventory?

Which of the following types of costs would be classified as a product cost in a job order costing system? Check those that apply.

Define the term "equivalent unit" as it relates to process costing along with a simple numerical example of its calculation.

Rollins Manufacturing Rollins Manufacturing uses process costing. The following information was available for the current year: Refer to the Rollins Manufacturing information above. If Rollins uses the weighted-average method, how many total equivalent units were completed in the current period?

Which of the following types of costs would be specifically tracked or traced and assigned to a specific job in a job order costing system?

Giles Inc. Giles Inc. manufactures high quality golfing equipment. Giles assigns overhead to products based on machine hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated machine hours were 50,000. During the year, 54,000 machine hours were actually used. By the end of the year, actual overhead costs were calculated to be $529,200. Refer to the Giles Inc. information above. What was the predetermined overhead rate?

Aronson & Associates LLP Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March: Refer to the Aronson & Associates LLP information above. The amount of applied overhead for March will be:

Horatio Ltd. uses job order costing to measure and track product costs. Horatio has determined that machine hours drive its manufacturing overhead costs. During the month of June, the following data were available for Product #95: If total manufacturing overhead costs during the month totaled $10,000 when a total of 25,000 machine hours were used, what will be the total manufacturing cost of Product #95?

Bost Products Inc. Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: Refer to the Bost Products Inc. information above. If Bost uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost per equivalent unit for December?

Rolling Hills Construction Rolling Hills Construction Co. assigns overhead to specific jobs based on actual direct labor cost (dollars). The following information is available for the month of June: Refer to the Rolling Hills Construction information above. The predetermined overhead rate for the month of June is:

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year: Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, how many total equivalent units were completed in the current period?

Koole Products Inc. uses the first-in, first-out (FIFO) method of process costing. The following information was available for the current year: Required:

Nunez Products Inc. Nunez Products Inc. uses process costing. The following information was available for the current year: Refer to the Nunez Products Inc. information above. If Nunez uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (round to nearest penny)