Exam 2: Job-Order Costing: Calculating Unit Production Costs

The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base

Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September.During the same period,the Manufacturing Overhead applied to Work in Process was $89,000.The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Galbraith Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost.If Job 201 shows $28,000 of manufacturing overhead applied,the direct labor cost on the job was:

On March 1,Metevier Corporation had $37,000 of raw materials on hand.During the month,the company purchased an additional $62,000 of raw materials.During March,$69,000 of raw materials were requisitioned from the storeroom for use in production.These raw materials included both direct and indirect materials.The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a:

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of cost of goods manufactured for the year?

Soledad Corporation had $36,000 of raw materials on hand on December 1.During the month,the Corporation purchased an additional $71,000 of raw materials.The journal entry to record the purchase of raw materials would include a:

Traves Corporation incurred $69,000 of actual Manufacturing Overhead costs during October.During the same period,the Manufacturing Overhead applied to Work in Process was $68,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

If direct labor-hours is used as the allocation base in a job-order costing system,but overhead costs are not caused by direct-labor hours,then jobs with high direct labor requirements will tend to be undercosted relative to jobs with low direct labor requirements.

Dapper Corporation had only one job in process on May 1.The job had been charged with $3,400 of direct materials,$4,640 of direct labor,and $9,200 of manufacturing overhead cost.The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May,the following activity was recorded: Work in process inventory on May 30 contains $7,540 of direct labor cost.Raw materials consist solely of items that are classified as direct materials. The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a:

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: The direct materials cost was:

The following T-accounts have been constructed from last year's records at C&C Manufacturing: C&C Manufacturing uses job-order costing with a predetermined overhead rate and applies manufacturing overhead to jobs based on direct labor costs.What is the predetermined overhead rate?

Donham Corporation had $25,000 of raw materials on hand on May 1.During the month,the Corporation purchased an additional $65,000 of raw materials.During May,$66,000 of raw materials were requisitioned from the storeroom for use in production.These raw materials included both direct and indirect materials.The indirect materials totaled $4,000.The debits to the Work in Process account as a consequence of the raw materials transactions in May total:

Acton Corporation,which applies manufacturing overhead on the basis of machine-hours,has provided the following data for its most recent year of operations. The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to:

In a job-order costing system,the use of indirect materials that have been previously purchased is recorded as a credit to:

Alden Company recorded the following transactions for the just completed month.The company had no beginning inventories. (a)$72,000 in raw materials were purchased for cash. (b)$67,000 in raw materials were requisitioned for use in production.Of this amount,$56,000 was for direct materials and the remainder was for indirect materials. (c)Total labor wages of $112,000 were incurred and paid in cash.Of this amount,$94,000 was for direct labor and $18,000 was for indirect labor. (d)Additional manufacturing overhead costs of $108,000 were incurred and paid in cash. (e)Manufacturing overhead costs of $130,000 were applied to jobs using the company's predetermined overhead rate. (f)All of the jobs worked on during the month were completed and shipped to customers. (g)The underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold. Required: a.Post the above transactions to T-accounts. b.Determine the cost of goods manufactured. c.Determine the cost of goods sold (after closing Manufacturing Overhead).

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost.Any under or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month.During May,the following transactions were recorded by the company: The entry to dispose of the under or overapplied manufacturing overhead cost for the month would include:

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: The direct labor cost was:

Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate.During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800.The ending balance in the Finished Goods inventory account was $36,600.At the end of the year,manufacturing overhead was overapplied by $15,900. The balance in the Finished Goods inventory account at the beginning of the year was:

Killian Corporation began operations on January 1.The predetermined overhead rate was set at $6.00 per direct labor-hour.Debits to Work in Process for the year totaled $550,000.Credits to Work in Process totaled $480,000.Analysis of the Corporation's records indicate that direct labor cost totaled $250,000 for the year,which represents 20,000 direct labor-hours. The Corporation's ending work in process inventory consisted of one job,Job 42.The job had been charged with $28,000 of direct labor cost,which consisted of 2,000 actual labor-hours.The direct materials cost in Job 42 totaled:

Jameson Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for the next year: Jameson estimates that 24,000 direct labor-hours will be worked during the year.The predetermined overhead rate per hour will be: