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.

At the beginning of 2012, Conway Manufacturing Company had the following account balances: During the year, the following transactions took place: Remaining balance of Manufacturing overhead cleared to zero. Please record these transactions to the T-accounts and calculate ending balances in each of the accounts using the format below:

When direct materials are requisitioned, the Work in process account will be debited.

Fogelin Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances. Fogelin has 4 public relations specialists, plus an office staff. At the beginning of 2012, Fogelin estimated the total cost of salaries and benefits for the public relations specialists at $403,200, and a total of 7,200 billable hours for the year. All remaining office and administrative costs were estimated at $676,800. In June, Fogelin signed a contract for a Russian ballet performance. They negotiated a price of $6,400 for their services. When the job was complete, Fogelin's records showed that they had logged 36.5 billable hours. What was the amount of gross profit that Fogelin made on the job?

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: How much manufacturing overhead was allocated to the job?

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place: June 2: Issue $2,400 of direct materials and $200 of indirect materials to production. Following this transaction, what was the balance in the Work in process inventory account?

When materials are requisitioned for a job, the materials inventory account is debited.

Darrius Travel Services provided the following information: Cost allocation rate for direct labor: $40 per hour Cost allocation rate for indirect costs: $22 per hour If Darrius receives $350 for a job requiring 5 hours of direct labor, they will make a profit of $40.

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

Which of the following companies would NOT use job order costing?

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place: June 2: Issue $2,400 of direct materials and $200 of indirect materials to production. June 13: Pay $7,500 of direct factory labor cost, and $14,100 of indirect factory labor cost. Following these transactions, what was the balance in the Manufacturing overhead account?

A process costing system is useful in which of the following circumstances?

Which of the following best describes the term equivalent units?

Lakeside Company estimated manufacturing overhead costs for 2012 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2012 totaled 195,000. The manufacturing overhead account contains debit entries totaling $391,500. The manufacturing overhead for 2012 was: A)$31,500 underallocated. B)$31,500 overallocated. C)$18,000 underallocated. D)$18,000 overallocated.

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. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed, and how many equivalent units were calculated for the ending balance?

When manufacturing overhead costs are incurred, the amounts are recorded as a credit to Manufacturing overhead.

On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and transferred the costs to Finished goods. On July 6, they completed the sale of the goods to a customer for $5,100 cash. In order to record the sale, two entries are necessary-one to record revenue, and one to record cost of goods sold. Please provide the first of two entries to record sales revenue.

The cost of goods manufactured is recorded as a debit to the Work in process account.

Indirect materials issued and indirect labor costs incurred are debited to the Manufacturing overhead account.

The journal entry to record the incurrence of $1,500 of direct labor and $200 of indirect labor includes which of the following?