Exam 3: Job-Order Costing: Cost Flows and External Reporting

The following partially completed T-accounts are for Stanford Corporation: The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

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

The Tse Manufacturing Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $125,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $28,000. At the end of the year, manufacturing overhead was overapplied by $4,500.The balance in the Finished Goods inventory account at the beginning of the year was:

Tusa Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Results of operations: The adjusted Cost of Goods Sold for the year is: (Do not round your intermediate calculations.)

Braam Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours. At the end of the year, actual direct labor-hours for the year were 9,700 hours, the actual manufacturing overhead for the year was $143,350, and manufacturing overhead for the year was underapplied by $18,220. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been: (Do not round your intermediate calculations.)

Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Results of operations: The cost of goods available for sale is:

The following accounts are from last year's books of Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor, and manufacturing overhead-and it summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods.

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.The predetermined overhead rate for the year was closest to:

In the Schedule of Cost of Goods Manufactured, Total direct materials = Raw materials used in production − Ending raw materials inventory.

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700.The balance in the Finished Goods inventory account at the beginning of the year was:

Montuori Corporation uses a job-order costing system to assign manufacturing costs to jobs. At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold. Its balance sheet on October 1 appears below: Summaries of the transactions completed during October appear below: Required:a. Completely fill in the spreadsheet below. b. Prepare a Schedule of Cost of Goods Sold for the company for October. c. Prepare an Income Statement for the company for October.

The following partially completed T-accounts are for Stanford Corporation: The cost of goods manufactured is:

Kahanaoi Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Results of operations: Required: a. What is the journal entry to record raw materials used in production? b. What is the ending balance in Raw Materials? c. What is the journal entry to record the direct and indirect labor costs incurred during the year? d. What is the total amount of manufacturing overhead applied to production during the year? e. What is the total manufacturing cost added to Work in Process during the year? f. What is the journal entry to record the transfer of completed goods from Work in Process to Finished Goods? g. What is the ending balance in Work in Process? h. Is manufacturing overhead overapplied or underapplied for the year? By how much? i. What is the cost of goods available for sale during the year? j. What is the journal entry to record the unadjusted cost of goods sold? k. What is the adjusted cost of goods sold for the year? l. What is the gross margin for the year? m. What is the net operating income for the year?

The journal entry to record applying overhead during the production process is:

Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $154,000(2) Indirect materials requisitioned for use in production, $45,000(3) Direct labor wages incurred, $94,000(4) Indirect labor wages incurred, $119,000(5) Depreciation recorded on factory equipment, $44,000(6) Additional manufacturing overhead costs incurred, $83,000(7) Manufacturing overhead costs applied to jobs, $236,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000Use the following T-accounts to answer the following question. The ending balance in the Work in Process account is closest to:

Haver Corporation has provided the following data concerning last month's operations. How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?

Tyare Corporation had the following inventory balances at the beginning and end of May: During May, $60,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 330 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,200 of direct materials cost. The Corporation incurred $42,450 of actual manufacturing overhead cost during the month and applied $40,500 in manufacturing overhead cost.The direct materials cost in the May 1 Work in Process inventory account totaled:

On a manufacturing company's income statement, direct labor is separately listed as an expense.