Exam 4: Job Costing

What are three possible ways to dispose of underallocated or overallocated overhead costs at the end of a fiscal year? Briefly comment on the theoretical correctness or incorrectness of each method.

For a given job the direct costs associated with the job are ________.

The ending balance in the Work-in-Process Control account represents the costs of all jobs that ________.

Excellent Products,Inc. ,uses a budgeted factory overhead rate to apply overhead to production.The following data are available for the year ended December 31,2018. Required: a.Determine the budgeted factory overhead rate based on direct labor-hours. b.What is the applied overhead based on direct labor-hours? c.Is overhead overapplied or underapplied? Explain.

Elite Stationary employs 20 full-time employees and 10 trainees.Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours.Following is information for 2018: When a normal costing system is used,clients using proportionately more full-time employees than trainees will ________.

If indirect-cost rates are calculated monthly,distortions might occur because of ________.

Job costing ________.

A ________ is a grouping of individual indirect cost items.

Which account is credited if direct materials of $28,000 and indirect materials of $7,000 are sent to the manufacturing plant floor?

Job-costing is likely to be used by________.

In job costing,only direct costs are used to determine the cost of a job.

Benny Industries allocates manufacturing overhead at a predetermined rate of 160% of direct labor cost.Any overallocated or underallocated overhead is closed to the cost of goods sold at the end of the month.Below is information on job 205 that was in process at the end of the month of October Direct materials $4,000 Direct labor $3,000 Allocated manufacturing overhead $4,800 Jobs 206,207,and 208 were started in November.Direct materials that were used in November were $26,000 and direct labor costs were $21,000.For the month of November,actual manufacturing overhead was $32,000.The only job still in process on the last day of November was job 104 with the following costs: $3,000 for direct materials and $1,500 for direct labor. Required: a.Calculate the cost of goods manufacturered for November. b.Calculate the amount of overallocated or underallocated manufacturing overhead that should be closed to cost of goods sold on November 30.Be sure to label the answer as either overallocated or underallocated. c.What are the accounting entries to close the overallocated or underallocated manufacturing overhead on November 30?

River Falls Manufacturing uses a normal cost system and had the following data available for 2018: The ending balance of work-in-process inventory is ________.

Hammond and Jarrett provide tax consulting for estates and trusts.Their job-costing system has a single direct-cost category (professional labor)and a single indirect-cost pool (research support).The indirect-cost pool contains all the costs except direct personnel costs.All budgeted indirect costs are allocated to individual jobs using actual professional labor-hours. Required: a.Discuss the reasons a consulting firm might use a normal costing system rather than an actual costing system. b.What might be some reasons for the firm to change from a one-pool to a multiple-pool allocation concept?

What are the direct costs of a job and in which source documents are they recorded?

Beta Corporation uses a job cost system and has two production departments,A and B.Budgeted manufacturing costs for the year are: The actual material and labor costs charged to Job #432 were as follows: Beta applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year. Proportion of manufacturing overhead with respect to the total cost of the job is ________.

A local accounting firm employs 24 full-time professionals.The budgeted annual compensation per employee is $45,000.The average chargeable time is 420 hours per client annually.All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis. Other costs are included in a single indirect-cost pool,allocated according to professional labor-hours.Budgeted indirect costs for the year are $790,000,and the firm expects to have 90 clients during the coming year. What is the budgeted direct labor cost rate per hour? (Round the final answer to the nearest cent. )

In a costing system,________.

If indirect-cost rates were based on actual short-term usage,periods of lower demand would result in lower costs per unit.

Which of the following general ledger accounts will have a subsidiary ledger account?