Exam 17: Job Order Cost Systems and Overhead Allocations

[The following information applies to the questions displayed below.] Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost.Cost flows through the Work in Process Inventory account during March are given below: Only Job #007 was still in process at the end of March and this job had been charged with $40,000 in direct materials cost. -The predetermined overhead application rate at Capri Boat is what percentage of direct labor costs?

[The following information applies to the questions displayed below.] Starbright manufactures children car seats,strollers,and baby swings.Starbright's manufacturing costs are budgeted as follows: Factory utilities $105,000 Factory foremen salaries $75,000 Machinery setup costs $30,000 Total manufacturing overhead $210,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: During the current month,the following levels of activities were incurred: -What are the total manufacturing overhead costs allocated to the Car Seats for the current month? (Do not round intermediate calculations.Round your answer to the nearest dollar. )

A job order cost system traces direct materials cost to a particular job by means of:

Overhead application rates allow overhead to be assigned as units are being produced throughout the accounting period.

A debit balance in the manufacturing overhead account at month end indicates overhead applied to jobs was greater than the actual overhead costs.

Application of overhead Pyramid Corporation manufactures a single product.As a basis for determining an overhead application rate,the production manager made the following estimates for the coming year: In the following month,19,500 units were produced,involving direct labor costs of $78,000 and requiring 1,073 machine-hours. Determine the amount of manufacturing overhead to be applied to production during this month,assuming that the overhead application rate is based upon: (a)Estimated total direct labor cost for the year.$________ (b)Estimated total machine-hours for the year.$________

Metalworks Incorporated purchased $54,500 worth of direct materials to be used in Job #222.During the accounting period,Job #222 used $45,600 of direct materials.The amount of direct materials that would be shown in Job #222 Job Cost Sheet at the end of the accounting period should be $54,500,since this is the amount of direct materials the company had purchased for this particular job.

Objectives of a cost accounting system What are the major objectives of a cost accounting system in a manufacturing company?

Job order cost system-journal entries Paxton Products,which uses a job order cost system,completed the following transactions during the current month: (A)Materials costing $75,000 were used on various jobs. (B)Time cards of direct workers indicate direct labor costs of $125,000 for the month. (C)Overhead is applied to jobs at a rate of 75% of direct labor cost. (D)Jobs with total accumulated costs of $165,000 were finished during the month. (E)Units costing $210,000 were sold during the month at sales prices totaling $390,000.All sales were on account. In the space provided,prepare a general journal entry for the month summarizing each of the above categories of transactions.Explanations may be omitted.

Marty's Metal Shop uses a job order cost system.It applies overhead to jobs at a rate of 175% of direct labor costs.Job No.2617 required $800 in direct labor costs.The job was initially budgeted to require $850 in direct labor costs.Overhead applied to Job No.2617 during the period amounted to:

Application of overhead - missing information Holden Corporation manufactures a single product.Overhead is applied to production during the year using a predetermined rate based on direct labor cost.During the month of April,50,000 units of output were produced at a total direct labor cost of $425,000.The amount of overhead applied to these units was $2,125,000.Assuming total direct labor cost for the year had been estimated to be $4,125,000,calculate the amount of manufacturing overhead Holden Corporation had estimated it would incur during the year. What is estimated total manufacturing overhead cost for the year?

If actual overhead costs are less than the amount of overhead applied to production,this indicates that manufacturing overhead is over-applied.

The type of cost accounting system best suited to a particular company depends on:

Which of the following is a characteristic of manufacturing overhead in a job order cost system?

Management uses a cost accounting system to evaluate and reward employee performance.

When a job is completed:

Job order cost system Continental Company uses a job order cost accounting system.During March,three jobs were completed and the costs were computed as follows: job no.1,$89,000;job no.2,$58,800;job no.3,$54,000.As of March 31,the following amounts had been charged to the Work in Process Inventory controlling account in the general ledger: (a)Prepare the general journal entry to reflect the jobs completed during March: (b)Compute the cost of the unfinished jobs at March 31.$________

Alice Blue is a wholesale dress manufacturer.In manufacturing dresses,the following costs were incurred in March: Projected overhead for the year was $560,000 to be allocated based on project direct labor cost of $395,000.What are the total manufacturing costs for March? (Round your answer to the nearest dollar. )

[The following information applies to the questions displayed below.] Starbright manufactures children car seats,strollers,and baby swings.Starbright's manufacturing costs are budgeted as follows: Factory utilities $105,000 Factory foremen salaries $75,000 Machinery setup costs $30,000 Total manufacturing overhead $210,000 The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule: During the current month,the following levels of activities were incurred: -What are the factory utilities costs allocated to Baby Swings during the current month? (Do not round intermediate calculations.Round your answer to the nearest dollar. )

The account Work-in-Process Inventory: