Exam 4: Job-Order Costing and Normal Cost Overhead Application

Stutz, Inc.designs and builds basketball gymnasiums.Each gymnasium is custom-built to individual customers' specifications.Stutz uses job-order costing to keep track of its costs.In February it worked on three jobs.Data for these jobs are as follows: Overhead is applied to jobs at the rate of $25 per machine hour.By February 28, Job 178 is the only one unfinished.The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177).Jobs 177 and 179 are sold during February.Stutz sells its product at cost plus 40%. - Calculate the balance in Work-in-Process on February 28.

Trust Company applies overhead based on direct labor hours.At the beginning of the year, Trust estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000.During February, Trust has 5,000 direct labor hours and 10,000 machine hours. - What is the predetermined overhead rate?

The use of normal costing means that actual overhead costs are assigned directly to jobs.

When materials are put into production, they are taken from the Raw Materials account and put into the Work in Process account.

A source document that would not be used to help decide the cost of a job when using normal costing is (are)

Stutz, Inc.designs and builds basketball gymnasiums.Each gymnasium is custom-built to individual customers' specifications.Stutz uses job-order costing to keep track of its costs.In February it worked on three jobs.Data for these jobs are as follows: Overhead is applied to jobs at the rate of $25 per machine hour.By February 28, Job 178 is the only one unfinished.The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177).Jobs 177 and 179 are sold during February.Stutz sells its product at cost plus 40%. What is sales revenue for February?

Redwoods Company designs and builds exotic furniture for individual customers.On March 1, there were two jobs in process: Job 400 with a beginning balance of $23,000 and Job 402 with a beginning balance of $6,000.Overhead costs are applied by using a rate of 50% of direct labor costs.Both jobs are unfinished on March 31.Data on March costs for both the jobs are as follows: What is the total of the work-in-process account on March 31?

Wealth Company has the following transactions for the month of November: Balances at the beginning of the month were: - Calculate the ending balance of raw materials.

_________________________ is the amount that appears as an expense on the income statement after the adjustment for the period's overhead variance is recorded.

Megan Company uses job-order costing.At the end of the month, the following data was gathered: ​ Megan's selling price is cost plus 40% for each of its products. ​ What is the total in the work-in-process (WIP) account?

Sunlight, Inc.designs and builds basketball gymnasiums.Each gymnasium is custom-built to individual customers' specifications.Sunlight uses job-order costing to keep track of its costs.In March it worked on three jobs.Data for these jobs are as follows: Overhead is applied to jobs at the rate of $20 per machine hour.By March 31, Job 178 is the only one unfinished.The balance of finished jobs on March 1 is $60,000 (consisting of Job 177).Jobs 177 and 179 are sold during March.Sunlight sells its product at cost plus 30%. What is the cost of goods sold for the month of March?

On March 1, Job 10 had a beginning balance of $500.During March, direct materials of $800 and direct labor of $300 were added to the job.Overhead is applied to production at a rate of 40% of direct labor.There are 4 units in Job 10. What is the unit cost?

If actual overhead is greater than applied overhead, the variance is called underapplied overhead.

In a _______________________________ costs are accumulated by job.

The cost of direct materials is assigned to a job by the use of a source document known as a _____.

Jack's Water Slides makes custom water slides for hotels.On October 1, there were three jobs in process, Jobs 812, 813, and 814.Two more jobs were started during October, Jobs 815 and 816.By October 31, Jobs 812, 814, and 816 were finished.The following data has been collected: -Overhead is applied at the rate of 110% of direct labor cost.Jobs are sold at cost plus 50%.Selling and administrative expenses for October totaled $3,000.By October 31, Jobs 812 and 816 are sold, but the customer who ordered Job 814 decided he did not want the slide, so it is still in the warehouse. Calculate the ending balance in Work-in-Process as of October 31.

The three manufacturing cost elements are direct materials, direct labor, and overhead.

In job-order costing, the journal entry for a completed job costing $7,000 but not sold is:

Olson Corporation constructs new homes.Assume that Olson uses a job costing system.During May of the current year, the following transactions occurred: Olson purchased $4,500 of lumber on account. Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. Depreciation of $1,500 on equipment used to build new houses was recorded. A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash - The journal entry to record labor for Olson would include a

The work-in-process account consists of all the job-order cost sheets for the completed jobs.