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Exam 3: Job-Order Costing: Cost Flows and External Reporting

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Question 61

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The absorption cost approach provides for the absorption of all manufacturing costs,fixed and variable,into units of product.

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B) False

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Question 62

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Eppich Corporation has provided the following data for the most recent month: Required: Prepare T-accounts for Raw Materials,Work in Process,Finished Goods,Manufacturing Overhead,and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally,determine the ending balances.

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Question 63

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Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Results of operations: -If Omar Corporation applies overhead to jobs on the basis of direct labor-hours and Job 3 took 120 hours,how much overhead should be applied to that job?

Refer to the T-account below: Entry (5) could represent which of the following?

The following entry would be used to record the transfer of $40,000 of direct material and $10,000 of indirect material from the storeroom to production:

Doogan Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period: Required: Was manufacturing overhead underapplied or overapplied? By how much?

Borchardt Corporation has provided the following data concerning last month's operations. How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Tyare Corporation had the following inventory balances at the beginning and end of May: During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,050 of direct materials cost. The Corporation incurred $42,000 of actual manufacturing overhead cost during the month and applied $39,600 in manufacturing overhead cost. -The direct materials cost in the May 1 Work in Process inventory account totaled:

Dotsero Technology,Inc.,has a job-order costing system.The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs.The predetermined overhead rate in Department A is based on machine-hours,and the rate in Department B is based on direct materials cost.At the beginning of the most recent year,the company's management made the following estimates for the year: Job 243 entered into production an April 1 and was completed on May 12.The company's cost records show the following information about the job: At the end of the year,the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year: Required: a.Compute the predetermined overhead rates for Department A and Department B. b.Compute the total overhead cost applied to Job 243. c.Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.

A credit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead was overapplied.

Gonzalez,Inc.manufactures stereo speakers in two factories; one in Vandalia,Illinois and another in Modesto,California.The Vandalia factory uses direct labor cost (DL$)for its overhead rate and the Modesto factory uses machine-hours (MHs)for its overhead rate.Information related to both plants for last year is presented below: Required: Fill in the lettered blanks above.SHOW YOUR CALCULATIONS.

The following entry would be used to record depreciation on manufacturing equipment:

Maysonet Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. The cost of completed jobs transferred from Work in Process to Finished Goods during the year was:

During December,Moulding Corporation incurred $76,000 of actual Manufacturing Overhead costs.During the same period,the Manufacturing Overhead applied to Work in Process was $74,000. Required: Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

Bosshart Inc.has provided the following data for the month of May.There were no beginning inventories; consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $6,000. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process,finished goods,and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include the following:

Entry (1)in the below T-account represents the purchase rather than use of raw materials.

Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. -The applied manufacturing overhead for the year is closest to:

Chavez Corporation reported the following data for the month of July: Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. -The adjusted cost of goods sold that appears on the income statement for July is:

Solt Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. The Cost of Goods Manufactured for the year was $415,000.The unadjusted Cost of Goods Sold for the year was:

Koczela Inc. has provided the following data for the month of May: Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. -The cost of goods manufactured for May is: