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

Tondre Inc.has provided the following data for the month of July: The cost of goods manufactured for July is:

The direct labor rate for Brent Corporation is $9.00 per hour,and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour.During May,the company purchased $60,000 in raw materials (all direct materials)and worked 3,200 direct labor-hours.The Raw Materials inventory (all direct materials)decreased by $3,000 between the beginning and end of May.The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked.There was no Work in Process inventory on May 31. The debit to Work in Process for direct labor cost during May was:

Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs.At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at $200,000.The actual overhead cost incurred during the year was $362,000 and the actual direct labor costs incurred on jobs during the year was $208,000.The manufacturing overhead for the year would be:

Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows:

The following data have been recorded for recently completed Job 323 on its job cost sheet.Direct materials cost was $2,260.A total of 37 direct labor-hours and 141 machine-hours were worked on the job.The direct labor wage rate is $13 per labor-hour.The Corporation applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $14 per machine-hour.The total cost for the job on its job cost sheet would be:

On August 1,Shead Corporation had $35,000 of raw materials on hand.During the month,the company purchased an additional $56,000 of raw materials.During August,$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.Prepare journal entries to record these events.Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total:

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 direct materials used in production during the year totaled:

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. If the applied manufacturing overhead was $169,300,the actual manufacturing overhead cost for the year was:

The use of a predetermined overhead rate in a job-order cost system makes it possible to compute the total cost of a job before production is begun.

When completed goods are sold,the transaction is recorded as a debit to Cost of Goods Sold and a credit to Finished Goods.

The cost categories that appear on a job cost sheet include selling expense,manufacturing expense,and administrative expense.

On August 1,Shead Corporation had $35,000 of raw materials on hand.During the month,the company purchased an additional $56,000 of raw materials.During August,$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.Prepare journal entries to record these events.Use those journal entries to answer the following questions: The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in August total:

Cacioppo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the labor-hours for the upcoming year at 66,000 labor-hours.The estimated variable manufacturing overhead was $7.45 per labor-hour and the estimated total fixed manufacturing overhead was $1,760,220.The actual labor-hours for the year turned out to be 63,800 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year.

When a job is completed,the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to Work in Process.

Stelmack Corporation,a manufacturing Corporation,has provided data concerning its operations for September.The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000.Raw materials purchases during the month totaled $63,000.Manufacturing overhead cost incurred during the month was $53,000,of which $3,000 consisted of raw materials classified as indirect materials.The direct materials cost for September was:

Meyers Corporation had the following inventory balances at the beginning and end of November: During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The amount of direct labor cost in the November 30 Work in Process inventory was:

On August 1,Shead Corporation had $35,000 of raw materials on hand.During the month,the company purchased an additional $56,000 of raw materials.During August,$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.Prepare journal entries to record these events.Use those journal entries to answer the following questions: The debits to the Manufacturing Overhead account as a consequence of the raw materials transactions in August total:

On the Schedule of Cost of Goods Manufactured,the final Cost of Goods Manufactured figure represents:

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 balance in the raw materials inventory account on May 30 was:

Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 17,500 hours.At the end of the year,actual direct labor-hours for the year were 16,000 hours,the actual manufacturing overhead for the year was $233,000,and manufacturing overhead for the year was underapplied by $15,400.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been: