Exam 15: Job Order Costing and Analysis

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.

Selected information from the budget of the Khalid Corp.at the beginning of the year follows: Estimated factory overhead \ 132,000 Estimated direct labor hours 55,000 hours Estimated machine hours 41,250 hours Estimated direct labor cost \ 825,000 Actual factory overhead incured during the year \ 144,000 Calculate the predetermined overhead allocation rate if the company uses the following as a basis: (A.Direct labor hours. (B.Direct labor cost. (C.Machine hours.

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

BVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor.BVD estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor.If BVD bases applied overhead on direct labor cost,their overhead application rate for the next period should be:

Dell Builders manufactures each house to customer specifications.It most likely would use:

The Terrapin Manufacturing Company has the following job cost sheets on file.They represent jobs that have been worked on during June of the current year.This table summarizes information provided on each sheet: Number Total Cost Incurred Status of Job 951 \ 4,200 Finished and delivered 952 \ 7,700 Unfinished 953 \ 9,300 Finished and unsold 954 \ 11,100 Finished and delivered 955 \ 3,000 Finished and unsolc 956 \ 5,500 Finished and delivered 957 \ 35,000 Unfinished 958 \ 3,200 Finished and delivered 959 \ 500 Unfinished 960 \ 22,110 Unfinished 961 \ 7,200 Finished and unsolc 962 \ 8,500 Unfinished 963 \ 11,200 Finished and unsold a.What is the cost of the goods in process inventory on June 30? b.What is the cost of the finished goods inventory on June 30? c.What is the cost of goods sold for the month of June?

During last period,a company's overhead rate was 150% of direct labor cost.This caused factory overhead to be $10,000 overapplied.Use the following incomplete accounts to determine the cost of goods manufactured:

When factory payroll costs are recorded in a job cost accounting system:

A time ticket is a source document an employee uses to record the number of hours at work and that is used each pay period to determine the total labor cost.

Describe the purpose of a job cost sheet and explain what information is found on the job cost sheet.

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: Material Direct Labor Direct Labor Job \# Used Used Hours Used 1010 \ 45,000 \ 72,000 8,000 1011 59,000 77,000 7,000 1012 35,000 30,000 3,000 1013 26,000 40,000 5,000 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.Calculate the balance in the Goods in Process Inventory,Finished Goods Inventory,and Cost of Goods Sold accounts. (B.Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

Key Manufacturing Co.applies factory overhead to production on the basis of direct labor costs.Assume that at the beginning of the current year the company estimated that direct material costs would be $178,800,direct labor costs would be $154,000,and factory overhead costs would be $231,000. A. If the $28,000 cost of Key's goods in process inventory included $5,200 of direct labor cost, what amount of direct materials cost was included? B. If $8,100 of the company's $34,300 finished goods inventory was direct materials cost, determine the direct labor cost and factory overhead cost of the finished goods inventory.

The Goods in Process Inventory Account for XYZ Inc.follows: Goods in Process Inventory Beginning balance \ 4,750 Direct materials 17,925 ? CoG Manufactured Direct labor 24,750 Applied overhead ? Ending balance \ 10,400 If the overhead is applied at the rate of 80% of direct labor cost,what is the amount of Cost of Goods Manufactured?

A clock card is a source document that an employee uses to report how much time was spent working on a job or on overhead 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.

As direct materials are used on a job,their cost is debited to the Finished Goods Inventory account.

PRO,Inc.had the following activities during its most recent period of operations: (a)Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account). (b)Issued raw materials to production of $130,000 (80% direct and 20% indirect). (c)Incurred and paid labor costs of $250,000 cash (70% direct and 30% indirect). (d)Incurred factory utilities costs of $20,000; this amount is still payable. (e)Applied overhead at 80% of direct labor costs. (f) Recorded factory depreciation,$22,000. Prepare journal entries to record the above transactions.

Job order costing systems normally use:

A company's ending inventory of finished goods has a cost of $35,000 and consists of 750 units.If the overhead applicable to these goods is $8,400,and overhead is applied at the rate of 60% of direct labor,what is the cost of the direct materials used to produce these units?

The production of one unit of Product BBB used $17.50 of direct materials and $21 of direct labor.The unit sold for $56 and was assigned overhead at a rate of 30% of labor costs.What is the gross profit per unit on its sale?

A company has an overhead application rate of 125% of direct labor costs.How much overhead would be allocated to a job if it required total labor costing $20,000?