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Exam 3: Job-Order Costing

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Question 51

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Baker Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210, 600 and 6, 000 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $209, 000 and actual direct labor-hours were 5, 980. The predetermined overhead rate for the year was closest to:

A) $34.95
B) $34.83
C) $34.98
D) $35.10

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Question 52

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

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Question 53

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Use of a single, plantwide overhead rate is generally appropriate only for very large manufacturing companies.

Tramell Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for June: The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for June is closest to:

Dreckman Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In August the company completed job M27K that consisted of 17, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost for job M27K according to its job cost sheet was $1, 118, 600.During the month, the actual manufacturing overhead cost incurred was $265, 880 and the manufacturing overhead applied was $272, 000.And during the month, 1, 000 completed units from job M27K were sold.No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for August is closest to:

Messana Corporation reported the following data for the month of August: The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for August is:

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 overhead for the year was:

Departmental overhead rates are generally preferred to plant-wide overhead rates when:

What document is used to determine the actual amount of direct materials to record on a job cost sheet?

If a company uses predetermined overhead rates, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead Incurred account, but they will not be recorded on the job cost sheets for the period.

Bartholemew Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In February the company completed job G43C that consisted of 19, 000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job G43C shows that the job's total cost was $1, 126, 700.During the month, 14, 000 completed units from job G43C were sold.No other products were sold during the month. Required: Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead)for February.Show your work!

A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates.

Farber Corporation uses a job-order costing system.The information below is from the financial records of the company for last year: Applied overhead was 30% of total manufacturing costs.The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. Total cost of direct material used by Farber Corporation was:

Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours.Last year manufacturing overhead and direct labor-hours were estimated at $50, 000 and 20, 000 hours, respectively, for the year.In June, Job #461 was completed.Materials costs on the job totaled $4, 000 and labor costs totaled $1, 500 at $5 per hour.At the end of the year, it was determined that the company worked 24, 000 direct labor-hours for the year and incurred $54, 000 in actual manufacturing overhead costs. Required: a.Job #461 contained 100 units.Determine the unit product cost that would appear on the job cost sheet. b.Determine the underapplied or overapplied overhead for the year.

Caber Corporation applies manufacturing overhead on the basis of machine-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60, 600.Actual manufacturing overhead for the year amounted to $59, 000 and actual machine-hours were 5, 900.The company's predetermined overhead rate for the year was $10.10 per machine-hour. The overhead for the year was:

Farber Corporation uses a job-order costing system.The information below is from the financial records of the company for last year: Applied overhead was 30% of total manufacturing costs.The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. The Work in Process inventory at December 31 was:

A good description of "cost of goods manufactured" is the recorded cost of the:

Tondre Inc.has provided the following data for the month of July: The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for July is:

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210, 600 and 6, 000 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $209, 000 and actual direct labor-hours were 5, 980. The overhead for the year was:

Catala Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for March: The cost of goods sold that appears on the income statement for March and that has been adjusted for any underapplied or overapplied overhead is closest to: