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

Verrett 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 unadjusted Cost of Goods Sold is:

Tyare Corporation had the following inventory balances at the beginning and end of May: During May, $58,500 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 300 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 $7,050 of direct materials cost. The Corporation incurred $42,000 of actual manufacturing overhead cost during the month and applied $39,600 in manufacturing overhead cost. -The raw materials purchased during May totaled:

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

On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: -The credits to the Work in Process account as a consequence of the raw materials transactions in November total:

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

In the Schedule of Cost of Goods Manufactured,Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials − Ending raw materials inventory.

The journal entry for cost of goods manufactured includes the costs of units that are partially completed.

Under a job-order costing system,the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

At the beginning of December,Altro Corporation had $26,000 of raw materials on hand.During the month,the Corporation purchased an additional $76,000 of raw materials.During December,$72,000 of raw materials were requisitioned from the storeroom for use in production.The credits entered in the Raw Materials account during the month of December total:

Chavez Corporation reported the following data for the month of July: Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. -The direct materials cost for July is:

Easterling Corporation uses a job-order costing system.The following data relate to the just completed month's operations. Required: a.Where appropriate,post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below. b.Determine the underapplied or overapplied overhead for the month.

Rediger Inc.,a manufacturing Corporation,has provided the following data for the month of June.The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month.During the month,the Corporation incurred direct materials cost of $55,000 and direct labor cost of $28,000.The actual manufacturing overhead cost incurred was $53,000.The manufacturing overhead cost applied to Work in Process was $51,000.The cost of goods manufactured for June was:

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

Mackinaw Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year,the Corporation worked 17,000 actual direct labor-hours and incurred $145,000 of actual manufacturing overhead cost.They had estimated at the beginning of the year that 16,000 direct labor-hours would be worked and $144,000 of manufacturing overhead costs incurred.The Corporation had calculated a predetermined overhead rate of $9 per direct labor-hour.The Corporation's manufacturing overhead for the year was:

Tondre 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.Determine the cost of goods manufactured for the month. b.Prepare a Schedule of Cost of Goods Sold for the month.

Firlit Corporation incurred $69,000 of actual Manufacturing Overhead costs during October.During the same period,the Manufacturing Overhead applied to Work in Process was $70,000.The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Assume that a company closes out any manufacturing overhead overapplied or underapplied to cost of goods sold.Then in the Schedule of Cost of Goods Sold,Adjusted cost of goods sold = Unadjusted cost of goods sold + Overapplied overhead - Underapplied overhead.

Cai Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. The cost of indirect materials requisitioned for use in production during the year was:

Castagnola Inc. has provided the following data for the month of January. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Centore Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $3,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. -The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for June would include the following: