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Exam 3: Job-Order Costing

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Question 31

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Cost of goods sold equals beginning finished goods inventory, less cost of goods manufactured, plus ending finished goods inventory.

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Question 32

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The Work in Process inventory account of a manufacturing firm shows a balance of $3,000 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $500 and $300 for materials, and charges of $400 and $600 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:

A) 83%
B) 120%
C) 40%
D) 300%

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Question 33

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The cost of goods sold in a single product company is equal to the number of units sold multiplied by their unit product cost, less any overapplied overhead or plus any underapplied overhead.

Sandler Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Required: Compute the company's predetermined overhead rate.

Paskey Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In July the company completed job C77T that consisted of 12,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job C77T shows that the job's total cost was $771,600. During the month, 10,000 completed units from job C77T were sold. No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for July is closest to:

At the beginning of the year, manufacturing overhead for the year was estimated to be $267,500. At the end of the year, actual direct labor-hours for the year were 22,100 hours, the actual manufacturing overhead for the year was $262,500, and manufacturing overhead for the year was overapplied by $13,750. 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:

The cost of goods sold that would appear on the income statement for May, after adjustment for any underapplied or overapplied overhead, is closest to:

The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for November is closest to:

The cost of goods sold that appears on the income statement for July and that has been adjusted for any underapplied or overapplied overhead is closest to:

The actual manufacturing overhead incurred at Hogans Corporation during April was $59,000, while the manufacturing overhead applied to jobs was $74,000. The company's Cost of Goods Sold was $289,000 prior to adjusting for any underapplied or overapplied overhead. Which of the following statements is true?

Molano Corporation has provided the following data concerning manufacturing overhead for June: The company's Cost of Goods Sold was $255,000 prior to adjusting for any underapplied or overapplied overhead. Which of the following statements is true?

Shatrau Inc., which uses job-order costing, has provided the following data for December: Required: Determine the unadjusted cost of goods sold (in other words, the cost of goods sold before adjusting for any underapplied or overapplied overhead) for December. Show your work!

Kaushiva Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In September, the company completed job I91W that consisted of 12,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job I91W shows that the job's total cost was $649,200. During the month, 7,000 completed units from job I91W were sold. No other products were sold during the month. Required: Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for September. Show your work!

Elwood Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. In February the company completed job D68R that consisted of 16,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job D68R shows that the total cost for the job was $916,800. During the month, the actual manufacturing overhead cost incurred was $224,480 and the manufacturing overhead cost applied to job D68R was $243,200. And during the month, 10,000 completed units from job D68R were sold. No other products were sold. The cost of goods sold that would appear on the income statement for February is closest to:

Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $540,000. Actual direct labor-hours were 105,000. What was the overapplied or underapplied manufacturing overhead for the year?

The cost of goods manufactured for July is closest to:

The following data have been recorded for recently completed Job 674 on its job cost sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be:

Dobrinski Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 13,000 labor-hours. The estimated variable manufacturing overhead was $2.35 per labor-hour and the estimated total fixed manufacturing overhead was $156,130. Required: Compute the company's predetermined overhead rate.

The predetermined overhead rate is closest to:

The predetermined overhead rate was based on how many estimated machine-hours?