Job Order Costing
Job Order Costing
Job Order Costing
The objective of this assignment is for you to review the previous discussions
related to this topic, apply the necessary concepts, research, and analyze the
given situation/problem, then come up with your answer based on the
knowledge that you have. Take note that in the process, try to identify your
"weak points" so you can improve on them. This can only be achieved if you
are honest in the learning process. "It is important to pass but it is more
important to learn".
QUESTIONS:
May 1
$26,00
balance.....................................
0
......
Debits during May:
Direct $40,00
Materials...................................
0
...
Direct
$50,00
Labor........................................
0
...
Manufacturing $37,50
Overhead........................ 0
A) $10,600
B) $16,700
C) $12,800
D) $23,400
3. At the beginning of the year, manufacturing overhead for the year was
estimated to be $477,590. At the end of the year, actual direct labor-
hours for the year were 29,000 hours, the actual manufacturing
overhead for the year was $472,590, and manufacturing overhead for
the year was overapplied by $110. If the predetermined overhead rate is
based on direct labor-hours, then the estimated direct labor-hours at the
beginning of the year used in the predetermined overhead rate must
have been:
4. At the beginning of the year, manufacturing overhead for the year was
estimated to be $670,700. At the end of the year, actual direct labor-
hours for the year were 36,200 hours, the actual manufacturing
overhead for the year was $665,700, and manufacturing overhead for
the year was overapplied by $22,100. If the predetermined overhead
rate is based on direct labor-hours, then the estimated direct labor-
hours at the beginning of the year used in the predetermined overhead
rate must have been:
5. At the beginning of the year, manufacturing overhead for the year was
estimated to be $670,530. At the end of the year, actual direct labor-
hours for the year were 29,400 hours, the actual manufacturing
overhead for the year was $665,530, and manufacturing overhead for
the year was underapplied by $27,550. If the predetermined overhead
rate is based on direct labor-hours, then the estimated direct labor-
hours at the beginning of the year used in the predetermined overhead
rate must have been:
A) $249,375
B) $217,600
C) $228,000
D) $238,000
A) $164,023
B) $125,130
C) $148,350
D) $138,350
B) $296,100
C) $298,816
D) $283,500
A) $21.59
B) $20.76
C) $21.30
D) $21.85
A) $15.43
B) $15.30
C) $15.17
D) $14.96
11. Dafoe Corporation uses direct labor-hours in its predetermined overhead
rate. At the beginning of the year, the total estimated manufacturing overhead
was $221,100. At the end of the year, actual direct labor-hours for the year
were 14,400 hours, manufacturing overhead for the year was overapplied by
$21,500, and the actual manufacturing overhead was $216,100. The
predetermined overhead rate for the year must have been closest to:
A) $15.01
B) $17.73
C) $15.35
D) $16.50
The company closes out the balance in the Manufacturing Overhead
to Cost of Goods Sold at the end of the year. In the journal entry to close out
the balance, the company would:
13. Rio Manufacturing Company uses a job order cost system. At the
beginning of February, Rio only had one job in process, Job #594. The
direct costs assigned to this job at that time were $800 of materials and
$650 of labor. Job #594 was finished during February incurring
additional direct costs of $120 for materials and $370 for labor. Job
#595 was started and finished during February. The direct costs
assigned to this job were $310 for materials and $190 for labor. Job
#596 was started during February but was not finished by the end of the
month. The direct costs assigned to this job were $740 for materials and
$300 for labor. Rio applies manufacturing overhead to its products at a
rate of 200% of direct labor cost. What is Rio's cost of goods
manufactured for February?
A) $2,440
B) $3,750
C) $4,860
D) $6,500
A) $100
B) $160
C) $225
D) $530
A) $98,000
B) $73,000
C) $71,000
D) $69,000
Including the items listed above, the debits to the Manufacturing
Overhead account totaled $245,000 for the year. Credits to the account
totaled $240,000 for the year. Based on this information, if all entries had
been made correctly during the year the Manufacturing Overhead account
would have been:
A) overapplied by $4,000
B) overapplied by $12,000
C) underapplied by $5,000
D) overapplied by $2,000
Dapper Company 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.
A) $33,500
B) $2,000
C) $40,000
D) $6,500
A) $109,670
B) $124,620
C) $143,300
D) $126,820
19. The entry to dispose of the under- or overapplied overhead cost for the
month would include a:
The direct labor rate in Brent Company 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.
A) $0
B) $6,700
C) $4,500
D) $8,500
21. The debit to Work in Process for the cost of direct materials used
during May was:
A) $63,000
B) $61,000
C) $57,000
D) $67,000
22. The debit to Work in Process for direct labor cost during May was:
A) $21,000
B) $26,100
C) $28,800
D) $31,500
A) $16,700
B) $21,700
C) $18,500
D) $23,500
A) $20,000
B) $34,000
C) $22,500
D) $25,000
A) $9,000
B) $12,000
C) $10,000
D) $14,000
A) $8,000
B) $6,500
C) $9,000
D) $6,000
A) $9,000
B) $3,000
C) $500
D) $7,000
A) $250 overapplied
B) $750 underapplied
C) $250 underapplied
D) $750 overapplied
A) $11,000
B) $5,000
C) $7,000
D) $9,000
A) $7,600
B) $2,000
C) $6,300
D) $4,300
31. The entry to dispose of the under or overapplied overhead cost for
the month would include:
Total manufacturing
$2,500,000
costs.........................
Cost of goods
$2,425,000
manufactured......................
Predetermined overhead 80% of direct labor
rate..................... cost
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.
B) $600,000
C) $900,000
D) $937,500
A) $750,000
B) $812,500
C) $850,000
D) $1,150,000
A) $300,000
B) $225,000
C) $100,000
D) $75,000
35 The direct materials used in production during the year totaled:
A) $180,000
B) $240,000
C) $130,000
D) $120,000
36. If the actual manufacturing overhead cost for the year totaled
$145,000, then overhead was:
A) overapplied by $25,000
B) overapplied by $10,000
C) underapplied by $25,000
D) underapplied by $10,000
A) $33,000
B) $42,000
C) $17,000
D) $30,000
A) $22,900
B) $26,300
C) $6,400
D) $49,200
A) $8,000
B) $12,300
C) $12,600
D) $11,000
A) $8,000
B) $10,000
C) $7,400
D) $4,600