Exam 4: Systems Design: Process Costing

Under Lamprey Company's job-order costing system,manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate.During January,Lamprey's transactions included the following: Lamprey Company had no beginning or ending inventories.What was the cost of goods manufactured for January?

What was the amount of manufacturing overhead allocated to jobs during 2014?

Work in Process is a control account supported by detailed cost data contained in:

The cost of goods manufactured was:

In a job-order costing system,direct labour costs are usually recorded initially with a debit to:

The use of different predetermined overhead rates in departments of larger companies may yield more accurate costing.

The labour time sheet contains a detailed summary of the direct and the indirect labour hours of an employee.

The cost of raw materials purchased during the year amounted to:

Direct labour costs charged to production during the year amounted to:

The raw materials purchased during April totalled:

The direct materials cost in the November 1 Work in Process inventory account totalled:

In a job-order costing system,costs are traced to departments and then allocated to units of product using an average process.

Stan Wilson,a newly hired worker at Superior Molding,was puzzled by the job cost sheets attached to the jobs he worked on.He understood the materials and labour cost entries - these represent the actual costs of materials he requisitioned for the job and the cost of the labour hours he recorded for the job.However,he did not understand the entry for manufacturing overhead.This entry was made at the end of the day by the accountants and he had no idea where this number came from.He asked the company's controller,Mary Donner,but the only part of the explanation he understood was that the overhead entries do not represent actual overhead costs. Required: Explain to Stan what the manufacturing overhead entries on the job cost sheet mean.

What was the amount of direct materials used during November if $20,000 in raw materials were purchased during the month and if the inventories were as follows?

The manufacturing overhead applied is:

Indirect materials are not charged to a specific job but rather are included in the Manufacturing Overhead account.

How much direct labour cost was incurred during January?

The cost of goods manufactured for February was:

Indirect labour costs are initially recorded in the Work in Process account and on the job cost sheets of the individual jobs worked on during a period.

A credit balance in the Manufacturing Overhead account at the end of the year means that overhead was underapplied.