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Exam 5: Job Order Costing

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Question 71

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Pendarvis Company uses a job-order costing system and has the following information for the first week of June: Required:

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Question 72

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The logical explanation for an entry that includes a debit to Manufacturing Overhead control and a credit to Prepaid Insurance is

A) the insurance company sent the company a refund of its policy premium.
B) overhead for insurance was applied to production.
C) insurance for production equipment expired.
D) insurance was paid on production equipment.

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Question 73

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McKinney Manufacturing Company McKinney Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.McKinney has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.McKinney produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory. Refer to McKinney Manufacturing Company.Assuming that there was no sailcloth in inventory at the beginning of June,the unfavorable material quantity variance for the month was

Which of the following would fall within the range of tolerance for a production cycle?

Webb Company. Webb Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent; the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500; 3,100; and 4,200; respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Webb Company.What is the prime cost of Job #6?

Parker Company manufactures custom-built conveyor systems for factory and commercial operations.Susan Jones is the cost accountant for Parker Company and she is in the process of educating a new employee,Terry Smith about the job-order costing system that Parker Company uses.(The system is based on normal costs; overhead is applied based on direct labor cost and rounded to the next whole dollar.)The following job-order cost records are available for July: To explain the missing job number,Susan informed Terry that Job #668 had been completed in June.She also told her that Job #667 was the only job in process at the beginning of July.At that time,the job had been assigned $4,300 for direct material and $900 for direct labor.At the end of July,Job #671 had not been completed; all others had.Terry asked Susan several questions to determine whether she understood the job-order system. Required: Help Susan answer the following questions:

Overapplied factory overhead that is material in amount is closed to cost of goods sold at year end.

Cayton Company. Cayton Company uses a job-order costing system and develops its predetermined overhead rate based on machine hours.The company has two jobs in process at the end of the cycle,Jobs #177 and #179. Refer to Cayton Company.What amount of overhead is charged to Jobs #177 and #179? Machine hours are split between Jobs #177 and #179-65 percent and 35 percent,respectively.Actual machine hours equal budgeted machine hours.

Miller Company Miller Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available: Refer to Miller Company.What is the overhead application rate if Miller uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar) ?

Webb Company. Webb Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent; the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500; 3,100; and 4,200; respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Webb Company.Assume the balance in Work in Process Inventory was $18,500 on June 1 and $25,297 on June 30.The balance on June 30 represents one job that contains direct material of $11,250.How many direct labor hours have been worked on this job (rounded to the nearest hour) ?

Bolles Corporation manufactures products on a job-order basis.The job cost sheet for Job #902 shows the following for April: At the end of April,what total cost appears on the job cost sheet for Job #902?

Which of the following could not be used in job-order costing?

When manufacturing overhead is applied to a job in process,the ______________________________ account is debited

A company that manufactures custom bridal gowns will use a job-order costing system to track production costs.

When a job is begun,the first document in the job-order process is the ___________________________________.

A company that manufactures large quantities of homogeneous goods will normally use a ____________________ costing system.

A job-order costing system is likely to provide better

Products at Krause Manufacturing are sent through two production departments: Fabricating and Finishing.Overhead is applied to products in the Fabricating Department based on 150 percent of direct labor cost and $18 per machine hour in Finishing.The following information is available about Job #297: What is the total cost of Job #297?

Webb Company. Webb Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent; the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500; 3,100; and 4,200; respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Webb Company.How much overhead is applied to Work in Process?

Cayton Company. Cayton Company uses a job-order costing system and develops its predetermined overhead rate based on machine hours.The company has two jobs in process at the end of the cycle,Jobs #177 and #179. Refer to Cayton Company.Fifty-four percent of raw material belongs to Job 17 and 38 percent belongs to Job 179,and the balance is considered indirect material.What amount of raw material used was allocated to overhead as indirect material?