Exam 2: Job Order Costing and Analysis

A manufacturing company uses a job order cost accounting system.Overhead is applied using direct labor hours as an allocation base.Total costs for a particular job were $5,720.Of this amount $2,600 was direct labor and $1,040 was direct material.The company pays $26 per hour of direct labor and $2 per pound of direct materials.What is this company's overhead rate?

Deltan Corp.allocates overhead to production on the basis of direct labor costs.If Deltan's total estimated overhead is $450,000 and estimated direct labor cost is $180,000, determine the amount of overhead to be allocated to finished goods inventory.There is $20,000 of total direct labor cost in the jobs in the finished goods inventory.

A company's predetermined overhead allocation rate is 130% based on direct labor cost.How much overhead would be allocated to Job No.105 if it required total direct labor costs of $60,000?

The balance of the Factory Overhead account appears on the income statement.

Use the following information to compute the following items: A.Calculate the cost of materials used B.Calculate the manufacturing costs incurred during the period. C.Calculate the Cost of Goods Manufactured during the period. D.Calculate the Cost of Goods Sold during the period. E.Calculate the amount by which overhead is under- or overapplied.

The following calendar year information about the Tahoma Corporation is available on December 31: The company applies overhead on the basis of 125% of direct labor costs.Calculate the amount of over- or underapplied overhead.

The collection of job cost sheets for all jobs in process makes up the subsidiary ledger controlled by the _____________________ inventory.

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units.If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

Time tickets for factory employees during the month of August are summarized as follows: Prepare the necessary journal entries to record factory payroll.

When a job is finished, its job cost sheet is completed and moved from the file of jobs in process to the file of finished jobs that are yet to be delivered to customers.

The Dina Corp.has applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account, and this amount is not material.The entry to dispose of this remaining factory overhead balance is:

Samer Corp.uses a job order cost accounting system.The following is selected information pertaining to costs applied to jobs during the year: Jobs still in process at the end of the year: $167,000, which includes $65,000 direct labor costs. Jobs finished and sold during the year: $395,000, which includes $172,000 direct labor costs. Jobs finished but unsold at end of the year: $103,000, which includes $38,000 direct labor costs. 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.

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

Since a predetermined overhead allocation rate is established before a period begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.

In a job order cost accounting system, the total balances of all of the job cost sheets for unfinished jobs equal the balance in the Goods in Process Inventory account.

Erlander Company uses a job order cost accounting system.On November 1, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entry to record this requisition.

Penn Company uses a job order cost accounting system.In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor.These costs were accumulated in Factory Payroll as they were paid.Which entry should Penn make to assign the Factory Payroll?

In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on:

A job cost sheet includes:

If overhead applied is less than actual overhead, it is: