Exam 19: Job Order Cost Accounting

The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:

A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000?

The job cost sheet for Job number 93-471 includes the following information: DIRECT MATERIALS: 7/12 Requisition R93-566: 20 units @ $3.50 per unit 7/13 Requisition R93-576: 18 units @ $5.00 per unit 7/13 Requisition R93-578: 4 units @ $25.00 per unit 7/14 Requisition R93-591: 40 units @ $1.25 per unit DIRECT LABOR: 7/12 Employee 19: 8 hours @ $9.00 per hour 7/13 Employee 19: 6 hours @ $9.00 per hour 7/13 Employee 37: 6 hours @ $7.00 per hour 7/14 Employee 19: 5 hours @ $9.00 per hour 7/14 Employee 92: 5 hours @ $11.00 per hour FACTORY OVERHEAD: Assigned at 150% of direct labor cost. What is the total cost of Job number 93-471?

Sail Away takes special orders to manufacture sail boats for high end customers. Complete the job cost sheets for Sail Away for September based on the following information. Prepare journal entries to record the transactions as well as post to the job cost sheets. a. Purchased raw materials on credit, $145,000. b. Materials requisitions: Job 240, $48,000; Job 241, $36,000; Job 242, $42,000; indirect materials were $12,000. c. Paid $130,000 for factory wages. d. Time tickets used to charge labor to jobs: Job 240, $40,000; Job 241, $30,000; Job 242, $35,000, indirect labor is $25,000. e. The company incurred the following additional overhead costs: depreciation of factory building, $70,000; depreciation of factory equipment, $60,000; expired factory insurance, $10,000; utilities and maintenance cost of $20,000 were paid in cash. f. Applied overhead to all three jobs. The predetermined overhead rate is 190% of direct labor cost. g. Transferred jobs 240 and 242 to Finished Goods Inventory. h. Sold job 240 for $300,000 for cash. i. Closed the under- or over-applied overhead account balance.

The production of one unit of Product BBB used $17.50 of direct materials and $21.00 of direct labor. The unit sold for $56.00 and was assigned overhead at a rate of 30% of labor costs. What is the gross profit per unit on its sale?

A company's predetermined overhead allocation rate is 130% based on direct labor cost. How much overhead would be allocated to Job No. 105 if it required total direct labor costs of $60,000?

Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Hancock incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year.

A job order cost accounting system would best fit the needs of a company that makes:

The Terrapin Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during June of the current year. This table summarizes information provided on each sheet: (a) What is the cost of the goods in process inventory on June 30? (b) What is the cost of the finished goods inventory on June 30? (c) What is the cost of goods sold for the month of June?

A time ticket is a source document an employee uses to record the number of hours at work and that is used each pay period to determine the total labor cost.

If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

At the end of June, the job cost sheets for Monson Manufacturing show the following total costs accumulated on three custom jobs.

In a job order cost accounting system, raw materials requisitioned as direct materials are debited to ________________________; indirect materials are debited to _________________.

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

Job order costing systems normally use:

In a job order cost accounting system, indirect labor costs are debited to the Factory Overhead account.

Marshall Corp. uses a job order cost accounting system and worked only on Job 101 during the current period. Job 101 was sold for $460,000. The following information pertains to costs incurred for Job 101.

Dell Builders manufactures each house to customer specifications. It most likely would use:

_____________________, or customized production, produces products in response to customer orders.

Job cost sheets are used to track all of the costs assigned to a job, including direct materials, direct labor, overhead, and all selling and administrative costs.