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Exam 19: Job Order Costing

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Question 31

True/False

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A receiving report is prepared when purchased materials are first received by the manufacturing department.

A) True
B) False

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Question 32

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The following budget data are available for Oldest Company: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

A) $7.50
B) $.13
C) $.061
D) $16.50

E) B) and C)
F) A) and C)

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Question 33

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Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department.

Depreciation expense on factory equipment is part of factory overhead cost.

Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter: Job 356, 357, 358 & 359 were completed. Jobs 356 & 357 were sold at a profit of $500 on each job. What is the ending balance of Finished Goods for Zeke Company as of the end of the 1st quarter?

The recording of the jobs shipped and customers billed would include a debit to:

Selected accounts with a credit amount omitted are presented as follows: What was the balance of Work in Process as of April 30?

Job order cost accounting systems may be used for planning and controlling a service business.

Present entries to record the following summarized operations related to production for a company using a job order cost system:

Technics Inc., a manufacturing company, utilizes job order costing. Each division establishes its own estimates regarding overhead which are as follows: Division A Division B Total estimated overhead $128,000 $261,000 Total estimated machine hours 16,000 72,500 Total estimated direct labor costs $155,000 $290,000 Required: If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined overhead rate be for each division?

Poobah Manufacturers Inc. has estimated total factory overhead costs of $95,000 and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, the work in process account will be debited and factory overhead will be credited for:

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

During the month of April, Cavy Company incurred factory overhead as follows: Journalize the entry to record the factory overhead incurred during April.

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 300,000 hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Flagler Company allocates overhead based on machine hours. They estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead. Required: a. Calculate the overhead application rate for the year. b. What is the amount of applied overhead for the year? c. What is the amount of under or overapplied overhead for the year? Indicate whether it is over- or underapplied.

Which of the following would most likely be a period cost?

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000. a) Determine the total factory overhead amount applied. b) Calculate the over or under applied amount for the year. c) Prepare the journal entry to close factory overhead into Cost of Goods Sold.

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?