Exam 19: Job Order Costing

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased,units issued for use in production,and units that remain in the raw materials inventory,is called a(n):

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.

A company's job order cost accounting system applies overhead based on direct labor cost.The company's estimated production costs for were: direct labor,$57,600; direct materials,$76,800; and factory overhead,$9,600.Calculate the company's overhead allocation rate.

Bard Manufacturing uses a job order cost accounting system.During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Bard incurred a factory payroll of $150,000,paid in cash,of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% of direct labor cost.If Bard incurred total overhead costs of $167,800 during the month,compute the amount of under- or overapplied overhead:

Briefly describe how manufacturing firms dispose of overapplied or underapplied factory overhead.

The predetermined overhead allocation rate for Millay Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000.Actual costs incurred were: a. Calculate the predetermined overhead rate and calculate the overhead applied during the year. b. Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.

When factory payroll for indirect labor is assigned,__________________ is debited.

Samer Corp.uses a job order cost accounting system.The following is selected information pertaining to costs applied to jobs during the year: Samer Corp.'s predetermined overhead allocation rate is 60% of direct labor cost.At the end of the year,the company's records show that $189,000 of factory overhead has been incurred. (a)Determine the amount of overapplied or underapplied overhead. (b)Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

Bard Manufacturing uses a job order cost accounting system.During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Bard incurred a factory payroll of $150,000,paid in cash,of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% of direct labor cost.The journal entry to record the allocation of the factory payroll to production is:

Canoe Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs.Canoe Company's production costs for the year were: direct labor,$30,000; direct materials,$50,000; and factory overhead applied $6,000.The overhead application rate was:

The file of job cost sheets for completed but undelivered jobs equals the balance in the Goods in Process Inventory account.

A clock card is a source document used by an employee to record the total number of hours worked and serves as a source document for entries to record labor costs.

Describe the flow of labor costs in a job order costing system,and identify the documents used in the system.

Dina Corp.uses a job order cost accounting system.Four jobs were started during the current year.The following is a record of the costs incurred: Actual overhead costs were $55,800.The predetermined overhead allocation rate is $2.40 per direct labor hour.During the year,Jobs 1010,1012,and 1013 were completed.Also,Jobs 1010 and 1013 were sold for $387,000.Assuming that this is Dina's first year of operations: (a)Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs. (b)Calculate the balance in the Goods in Process Inventory,Finished Goods Inventory,and Factory Overhead accounts.Does the Factory Overhead account balance indicate an over- or underapplied overhead?

A job cost sheet is useful for developing financial accounting numbers but does not contain information that is useful for managing the production process.

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:

Docksider Boats uses a job order cost accounting system.During one month Docksider purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect.Docksider incurred a factory payroll of $95,000,paid in cash,of which $25,000 is classified as indirect labor.Docksider uses a predetermined overhead application rate of 170% of direct labor cost.The journal entry to record the issuance of materials to production is:

Bard Manufacturing uses a job order cost accounting system.During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Bard incurred a factory payroll of $150,000,paid in cash,of which $40,000 is classified as indirect labor.Bard uses a predetermined overhead application rate of 150% of direct labor cost.The total manufacturing costs added during the period are:

The following data relates to the Density Company's first operating period.Calculate the total cost of goods sold for each product.