Exam 4: Systems Design: Process Costing

Job cost sheets always contain entries for actual direct material,actual direct labour,and actual manufacturing overhead cost incurred in completing a job.

When completed goods are sold the transaction is recorded as a debit to Cost of Goods Sold and a credit to Work in Process.

In order to improve the accuracy of unit costs,most companies recompute the predetermined overhead rate each month.

The Cost of Goods Sold for the year (before disposition of any overhead underapplied or overapplied)was:

The cost of goods sold was:

Parker Company uses a job order cost system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labour-hours.Last year manufacturing overhead and direct labour-hours were estimated at $50,000 and 20,000 hours,respectively,for the year.In June,Job #461 was completed.Materials costs on the job totalled $4,000 and labour costs totalled $1,500 at $5 per hour.At the end of the year,it was determined that the company worked 24,000 direct labour hours for the year and incurred $54,000 in actual manufacturing overhead costs. Required: a.Job #461 contained 100 units.What unit cost that would appear on the job cost sheet? b.What is the underapplied or overapplied overhead for the year?

Lucy Sportswear manufactures a specialty line of T-shirts.The company uses a job-order costing system.During March,the following costs were incurred on Job ICU2: direct materials $13,700 and direct labour $4,800.In addition,selling and shipping costs of $7,000 were incurred on the job.Manufacturing overhead was applied at the rate of $25 per machine-hour and Job ICU2 required 800 machine-hours.If Job ICU2 consisted of 7,000 shirts,the Cost of Goods Sold per shirt was:

The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:

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

The cost of goods manufactured for March was:

Overhead costs tend to fluctuate with changes in the volume of units produced from period to period.

Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine hours.The following estimates were used in preparing the predetermined overhead rate for the most recent year:

Paul Company used a predetermined overhead rate during the year just completed of $3.50 per direct labour hour,based on an estimate of 22,000 direct labour hours to be worked during the year.Actual overhead cost and activity during the year were: The underapplied or overapplied overhead for the year was:

Jimbob Co.has the following estimated costs for the next year: The company estimates that 20,000 labour hours will be worked and 1,000 machine hours incurred during the year.If overhead is applied on the basis of direct labour costs,the overhead rate will be:

The cost of raw materials used in production was:

The entry to transfer the cost of goods manufactured for the period is:

During March total debits to Work in Process were:

Of the following accounts used in a job-order costing system,which is an expense account?

Bakerston Company 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 amount of direct labour cost in the November 30 Work in Process inventory was: