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Exam 2: Job Order Costing

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Question 71

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Frontier Inc.has provided the following information for the year ended 20x8: a.Purchased raw materials on account for $240,000. b.Issued $230,000 in raw materials to production ($32,000 were not traceable to specific jobs). c.Incurred $242,000 in direct labor costs (24,120 hours)and $92,500 in supervision costs (paid in cash). d.Incurred the following additional manufacturing overhead costs: factory utilities $24,000 (paid in cash);depreciation on equipment $45,000;indirect supplies $17,500 (paid in cash). e.Incurred the following nonmanufacturing costs,both paid in cash: advertising $75,000;sales salaries $88,000. f.Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour. g.Completed jobs costing a total of $644,000. h.Sold jobs for $856,000 on account.The cost of the jobs was $642,000. i.Closed the manufacturing overhead account balance. Prepare the journal entries to record these transactions.

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When materials are purchased,Raw Materi...

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Question 72

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Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

A) Cost of Goods Sold would be credited for $15,000.
B) Cost of Goods Sold would be credited for $5,000.
C) Cost of Goods Sold would be debited for $5,000.
D) Cost of Goods Sold would be debited for $15,000.

E) All of the above
F) C) and D)

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Question 73

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Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000 and actual direct labor hours were 19,000.The amount of manufacturing overhead applied to production would be:

Highview Corp.applies manufacturing overhead to production at 125% of direct labor cost.During the year ended 20x8,manufacturing overhead of $100,000 was applied to production;actual manufacturing overhead was $109,000.Beginning Work in Process Inventory was $15,000 and beginning Finished Goods Inventory was $35,000.Work in Process Inventory increased by 10% during the year and Finished Goods Inventory decreased by 20% during the year.Sales for the year ended 20xx were $450,000,yielding a $130,000 gross profit. Complete the following schedule:

The most common method for disposing of the balance in Manufacturing Overhead is to make a direct adjustment to Cost of Goods Sold.

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.The amount credited to the Manufacturing Overhead account would be:

Jenkins Company had the following information for the year: Jenkins Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $19,000.What was cost of goods manufactured?

Which of the following types of firms would most likely use job order costing?

Jackson Company had the following information for the year: Jackson Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods balance of $19,000.How much overhead was applied during the year?

Josie Inc.has provided the following information for the year ended 20x8: a.Purchased raw materials on account for $120,000. b.Issued $115,000 in raw materials to production ($22,000 were not traceable to specific jobs). c.Incurred $115,000 in direct labor costs (14,375 hours)and $62,500 in supervision costs (paid in cash). d.Incurred the following additional manufacturing overhead costs: factory lease $24,000 (paid in cash);depreciation on equipment $20,000;custodial supplies $7,500 (paid in cash). e.Incurred the following nonmanufacturing costs,both paid in cash: advertising $75,000;sales commissions $88,000. f.Applied manufacturing overhead to jobs in process at a rate of $10 per direct labor hour. g.Completed jobs costing a total of $345,000. h.Sold jobs for $425,000 on account.The cost of the jobs was $342,000. i.Closed the Manufacturing Overhead account balance. Prepare the journal entries to record these transactions.

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000 and actual direct labor hours were 19,000.The predetermined overhead rate per direct labor hour would be:

Jenkins Company had the following information for the year: Jenkins Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $19,000.What was adjusted cost of goods sold?