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Exam 15: Job Order Costing and Analysis

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Question 21

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Job order manufacturing is also known as:

A) Mass production manufacturing.
B) Process manufacturing.
C) Unit manufacturing.
D) Customized manufacturing.
E) Standard costing.

F) D) and E)
G) A) and C)

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Question 22

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In a job order cost accounting system, indirect labor costs are debited to the Factory Overhead account.

A) True
B) False

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Question 23

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The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units. If the overhead applied to these goods is $2,000, and the overhead rate is 50% of direct labor, how much direct materials cost was incurred in producing these units?

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

RC Corp. uses a job order cost accounting system. During the month of April, the following events occurred: (a) Purchased raw materials on credit, $32,000. (b) Raw materials requisitioned: $25,800 as direct materials (Job 1:$4,200, Job 2: $7,500, Job 3: $3,600 and Job 4: $10,500) and $10,500 indirect materials. (c) Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor. (d) Assigned the factory payroll to jobs and overhead. (Job 1:$7,000, Job 2: $9,800, Job 3: $3,000 and Job 4: $9,700) (e) Overhead was assigned at a rate of 50% of direct labor cost. Determine the total cost of each job.

RC Corp. uses a job order cost accounting system. During the month of April, the following events occurred: (a) Purchased raw materials on credit, $32,000. (b) Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials. (c) Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor. (d) Assigned the factory payroll to jobs and overhead. Make the necessary journal entries to record the above transactions and events.

The overhead allocation rate in Frantz Company's job order cost accounting system applies overhead based on direct labor costs. The company's manufacturing costs for the current year were: direct materials, $108,000; direct labor, $144,000; and factory overhead, $18,000. At year-end, the total cost of goods in process is $36,000, which includes $12,000 of direct labor cost. What amount of direct material cost is included in the ending goods in process inventory?

Dell Builders manufactures each house to customer specifications. It most likely would use:

Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory, is called a(n) :

The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:

At the current year-end, Hardly Company found that its overhead was underapplied by $2,500, and this amount was not deemed to be a material amount. Based on this information, Hardly should:

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?

Cost accounting systems accumulate costs and then assign them to products or services.

The Goods in Process Inventory account for the AB Corp. follows: The cost of units transferred to finished goods is:

A ______________________ is a separate record maintained for each job.

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

The Goods in Process Inventory Account for XYZ Inc. follows: If the overhead is applied at the rate of 80% of direct labor cost, what is the amount of Cost of Goods Manufactured?

The predetermined overhead allocation rate is used to apply overhead cost to products.

If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?