Exam 17: Job Order and Process Costing

Carlton Manufacturing Company purchased $65,000 of raw materials on account. The materials will be used to produce furniture. Please provide the journal entry for the purchase of materials.

Haverhill Products just completed job number 440. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Which of the following describes the correct journal entry to record the allocation of overhead to the job?

Which of the following correctly describes the term cost driver?

Caltran Company has just completed manufacturing job number 445. It included $320 of direct materials cost, $1,240 of direct labor cost, and $560 of allocated overhead. Which of the following is the correct journal entry needed to record the completed job?

Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data: Total manufacturing overhead estimated at the beginning of the year: \ 140,000 Total direct labor costs estimated at the beginning of the year: \ 350,000 Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours Actual manufacturing overhead costs for the year: \ 159,000 Actual direct labor costs for the year: \ 362,000 Actual direct labor hours for the year: 12,400 direct labor hours - Based on the data above, what was the preliminary ending balance in the manufacturing overhead account, prior to the year-end adjustment to clear the balance to zero? (Please round to nearest whole dollar.)

In 2012, the Cameratta Company used a predetermined manufacturing overhead rate of $4.75 per machine hour. Information for the year is as follows: Actual overhead costs incurred: Indirect materials \ 5,200 Indirect labor \ 3,750 Plant depreciation \ 4,800 Plant utilities and insurance \ 9,530 Other plant overhead costs \ 12,700 Total machine hours used during the year 7,520 What was the preliminary ending balance in the manufacturing overhead account before the year-end adjustment to clear the balance to zero?

At the beginning of 2012, Conway Manufacturing Company had the following account balances: During the year, the following transactions took place: Direct materials placed in production: \ 80,000 Direct labor incurred: \ 190,000 Manufacturing overhead incurred \ 300,000 Manufacturing overhead allocated to production: \ 295,000 Jobs completed with cost of : \ 500,000 Jobs sold for total revenue of : \ 750,000 Jobs sold with cost of: \ 440,000 Remaining balance of Manufacturing overhead cleared to zero - As a result of these transactions, how much gross profit will Conway report?

At the end of the year, Deltona Company has a preliminary debit balance in the Manufacturing overhead account of $3,950. Which of the following is the year-end adjusting entry needed to clear the balance to zero?

At the end of the year, Martin Company has a preliminary credit balance in the Manufacturing overhead account of $95. Which of the following is the year-end adjusting entry needed to clear the balance to zero?

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. What was the predetermined manufacturing overhead rate?

Which of the following would be included in the journal entry to record the requisition of indirect materials?

Rankin Food Products produces cane sugar syrup in bulk quantities and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. Using process costing analysis, Rankin determined that the cost of the units completed and transferred out of the Refining Department during the month was $20,000. Which of the following is the correct journal entry to record the cost of the units completed and transferred out to the next department?

Halcyon Company just completed job number 10-B. See details below. Direct labor cost: $2,040 Direct materials cost: $90 Direct labor hours: 75 Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour Number of units of finished product: 200 units What was cost per unit of finished product? (Please round to nearest cent.)

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows: Direct materials cost \ 27,500 Direct labor cost \ 13,000 Direct labor hours 400 hours Units of product produced: 200 crates - How much was the cost per unit (cost per crate) of finished product? (Please round to the nearest cent.)

At the beginning of 2012, Conway Manufacturing Company had the following account balances: During the year, the following transactions took place: Direct materials placed in production: \ 80,000 Direct labor incurred: \ 190,000 Manufacturing overhead incurred \ 300,000 Manufacturing overhead allocated to production: \ 295,000 Jobs completed with cost of : \ 500,000 - After these transactions have been recorded, the preliminary balance in the Manufacturing overhead account is a:

The engineering firm of Dobbs and Smith uses a job order costing system to accumulate client-related costs. The overhead rate is 60% of direct labor cost. Staff engineer time is charged at a rate of $80 per hour. A recent job for a client involved 30 staff labor hours. How much was the total job cost?

In a service business that uses a job order costing system, the professional staff would normally keep precise records of time spent on each client. It is equally important that the clerical staff and other indirect labor personnel keep similar records of time spent on each client.

During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $506,000 of manufacturing overhead costs. Overhead costs have been underallocated.

Broxsie Fabrication Company issued $40,000 of direct materials to production and $5,500 of indirect materials to production. Please prepare the journal entry to record the transaction.

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 40,000 liters of chemicals were started into production. During the month, 32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all raw materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. At the end of the month, LDR calculated equivalent units in the Mixing Department as shown below: EQUIVALENT UNITS Equinulent Units Units to account for Transferred In Direct Mtls Cost Conversion Cost Completed 32,000 0 32,000 32,000 End bal WIP * 8,000 0 8,000 4,800 40,000 0 40,000 36,800 *\% of completion for direct materials costs: 100\% \% of completion for conversion costs: 60\% During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs. How much was the cost per equivalent unit for materials and for conversion costs? (Please round all amounts to the nearest cent.)