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Exam 5: Job Costing

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Question 81

Multiple Choice

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Use the information below to answer the following question(s) . World Engines Ltd. manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 787 are as follows: -What is the total manufacturing cost of Job 787 using a predetermined MOH rate?

A) $17,100
B) $12,800
C) $15,500
D) $14,300

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

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Question 82

Multiple Choice

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Use the information below to answer the following question(s) . Here is some basic data for Callor Corporation: -At Callor Corporation the entry to record the cost of goods sold would include a

A) credit to Cost of Goods Sold for $260,000.
B) credit to Finished Goods Inventory for $295,000.
C) debit to Cost of Goods Sold for $295,000.
D) credit to Finished Goods Inventory for $260,000.

E) None of the above
F) All of the above

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Question 83

True/False

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At a service company, the indirect costs of serving the client include manufacturing overhead.

Manufacturing overhead has an overallocated allocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Which of these accounts would have an ending credit balance?

Use the information below to answer the following question(s) . Before the year began, Johnson Manufacturing estimated that manufacturing overhead for the year would be $160,000 and that 12,000 direct labour hours would be worked. Actual results for the year included the following: -At Johnson Manufacturing the amount of manufacturing overhead allocated for the year based on direct labour hours would have been

Which of the following would be appropriately costed using a process costing system?

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to estimate the total amount of manufacturing overhead costs for the year.

Under a perpetual inventory system, the journal entry needed to record the sale of a job includes a

Use the information below to answer the following question(s) . Here is some basic data for Shannon Company: -For Shannon Company the journal entry to close the under or over applied overhead to cost of goods sold is as follows:

Use the information below to answer the following question(s) . Solid Oak Bureau Company uses job costing. Solid Oak Bureau Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labour cost in the Trimming Department and direct labour hours in the Finishing Department. The following additional information is available: Actual data for completed Job No. 650 is as follows: -What is the predetermined manufacturing overhead rate for the Trimming Department?

If manufacturing overhead has been overallocated during the year, it means the jobs have been overcosted.

The journal entry to record $200 of depreciation expense on factory equipment involves a

Which of these documents substantiates the balance of the raw materials inventory account shown on the company's balance sheet?

In a manufacturing business, which of the following entries would be made to record $10,000 of labour of which 70% of is direct labour, and 30% which is indirect labour?

At Plastics Source, Inc., the beginning balance of the work in process inventory account in April of the most recent year was $17,000. Direct materials used during April totaled $140,000. Total manufacturing labour incurred in April was $163,500, 80% of this amount represented direct labour. The predetermined manufacturing overhead rate is 120% of direct labour cost. Actual manufacturing overhead costs for April amounted to $155,000. In April, two jobs were completed with total costs of $102,000 and $82,000, respectively. In April, the two jobs were sold on account for $175,000 and $127,000, respectively. a) Compute the balance in work in process inventory on April 30. b) Record the journal entry for direct materials used in April. c) Record the journal entry to record labour costs for April. d) Record the journal entry for allocated manufacturing overhead for April. e) Record the entry to move the completed jobs into finished goods inventory in April. f) Record the entry to sell the two completed jobs on account in April.

What is the total manufacturing cost of Job 787 using an actual overhead rate?

Use the information below to answer the following question(s) . Here is selected data for Jenquay Corporation: -At Jenquay Corporation the journal entry to transfer completed goods to the finished goods inventory account would include a

The difference between the sales price and the job cost is

Sullivan Company uses a predetermined overhead rate based on direct labour hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $500,000 of manufacturing overhead during the year and that 100,000 direct labour hours would be worked. During the year, the company actually incurred manufacturing overhead costs of $590,000 and 120,000 direct labour hours were worked. By how much was manufacturing overhead overallocated or underallocated for the year?

Use the information below to answer the following question(s) . Sable Company is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: -If Sable Company uses direct labour hours as the allocation base, what would the predetermined manufacturing overhead rate be?