Exam 5: Product and Service Costing: Job-Order System

Figure 5 - 8 Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. The following information about the jobs was given for April. By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process. -Refer to Figure 5-8. The cost of goods sold would consist of the costs of what jobs?

Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.

Figure 5 - 6 In the Monroe Company, the following Job cards were totaled at the end of the month: Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work- in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods. -Refer to Figure 5-6. What is the ending work-in-process inventory for the month?

Activity level is the average activity usage over the long term and normal activity level is the production level for one year.

In a single product is produced on a continuous basis.

Process costing would be most applicable for

Figure 5 - 2 The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: Direct materials placed into production $4,000 Direct labor hours worked 50 hours Direct labor rate per hour $ 15 Machine hours worked 100 hours Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units. -Refer to Figure 5-2. What the total cost assigned to Job XY5?

Service firms produce intangible products that are not separable from the customer.

Figure 5 - 8 Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. The following information about the jobs was given for April. By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process. -Refer to Figure 5-8. What is the cost of job 102?

Sound of Thunder Company has a job costing system. The following items appeared in the Work-in-Process account during April 2016: Sound of Thunder applies overhead to production on the basis of direct labor hours. Job XX, the only job in process on April 30, has been charged $10,600 materials cost and has 100 labor hours of direct labor time assigned to it. Required: a. Determine the predetermined factory overhead rate for Sound of Thunder Company. b. Determine the amounts of materials, direct labor, and factory overhead included in the April 30, 2016, work in process. c. Determine the amount of materials placed into production during April 2016.

Which of the following firms would make extensive use of service costing?

Figure 5 - 8 Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. The following information about the jobs was given for April. By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process. -Refer to Figure 5-8. What is the cost of goods manufactured?

Manufacturing firms produce intangible products that cannot be inventoried.

means that services cannot be inventoried but must be consumed when performed.

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: -Refer to Figure 5-7. What is the plantwide overhead rate based on direct labor hours?

A pure service organization has

Figure 5 - 8 Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. The following information about the jobs was given for April. By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process. -Refer to Figure 5-8. What is the activity rate for purchasing?

Total manufacturing-related costs incurred for Anhauser Company in August for all jobs is as follows: Assuming Anhauser uses a normal costing system and applies overhead based on a predetermined rate, what is the Credit to Overhead Control to close the account at the end of the year?

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