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

Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and 20,000 hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs.If Job #461 contained 100 units, the unit product cost on the completed job cost sheet would be:

Boursaw Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs: Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.How much is Kapanga's work in process inventory balance at the end of October?

During June, Briganti Corporation purchased $79,000 of raw materials on credit to add to its raw materials inventory. A total of $64,000 of raw materials was requisitioned from the storeroom for use in production. These requisitioned raw materials included $4,000 of indirect materials.Required:Prepare journal entries to record the purchase of materials and their use in production.

Chavez Corporation reported the following data for the month of July:Inventories: Additional information: Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.The cost of goods manufactured for July is:

The accounting records of Omar Corporation contained the following information for last year: The cost of goods manufactured for the year was:

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

Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,200 machine-hours and incur $245,680 in manufacturing overhead cost. The following transactions were recorded for the year:Raw materials were purchased, $315,200.Raw materials were requisitioned for use in production, $307,200 ($280,800 direct and $26,400 indirect).The following employee costs were incurred: direct labor, $377,200; indirect labor, $96,200; and administrative salaries, $172,200.Selling costs, $147,200.Factory utility costs, $10,200.Depreciation for the year was $139,000 of which $120,400 is related to factory operations and $18,600 is related to selling, general, and administrative activities.Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,040 machine-hours.Sales for the year totaled $1,261,000.Required:a. Prepare a schedule of cost of goods manufactured.b. Was the overhead underapplied or overapplied? By how much?c. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold.

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 total amount of manufacturing overhead actually incurred was:

Gurtner Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: The overapplied or underapplied manufacturing overhead for the year was:

Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Venzke 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 January 1 appears below: Summaries of the transactions completed during January appear below: Required: a. Completely fill in the spreadsheet below. b. Prepare a Balance Sheet for the company for January 31.

Durphey Corporation has provided the following data concerning last month's operations. How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and:

Shantz Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: a. Prepare a Schedule of Cost of Goods Manufactured for the month. b. Prepare a Schedule of Cost of Goods Sold for the month.

The following partially completed T-accounts are for Stanford Corporation: The manufacturing overhead applied is:

Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,560. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,480, and the actual manufacturing overhead was $360,400. The predetermined overhead rate for the year must have been closest to:

Gurtner Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Boursaw Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?