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

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Question 61

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Janeway Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Required: What was the cost of raw materials requisitioned for use in production during the year?

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Question 62

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The cost of goods manufactured for July is:

A) $203,000
B) $215,000
C) $204,000
D) $216,000

E) B) and D)
F) A) and C)

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Question 63

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The Collins Corporation uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production.At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: manufacturing overhead cost, $200,000; direct materials cost, $160,000.The following transactions took place during the year (all purchases and services were acquired on account): a.Raw materials were purchased, $86,000. b.Raw materials were requisitioned for use in production (all direct materials), $98,000. c.Utility costs were incurred in the factory, $15,000. d.Salaries and wages were incurred as follows: e.Maintenance costs incurred in the factory, $15,000. f.Advertising costs incurred, $89,000. g.Depreciation recorded for the year, $80,000 (80% relates to factory assets and the remainder relates to selling, general, and administrative assets). h.Rental cost incurred on buildings, $70,000, (75% of the space is occupied by the factory, and 25% is occupied by sales and administration). i.Miscellaneous selling, general, and administrative costs incurred, $11,000. j.Manufacturing overhead cost was applied to jobs as per company policy. k.Cost of goods manufactured for the year, $500,000. l.Sales for the year totaled $1,000,000.These goods cost $600,000 to produce. Required: Prepare journal entries for each of the above transactions.Assume that all transactions with external suppliers, employees, and customers were conducted in cash.

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for November would include the following:

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

Entry (11)in the below T-account could represent overhead cost applied to Work in Process.

The Simkins Corporation uses a job-order costing system.The following activities took place during the month of May: Required: Prepare journal entries to record the information given above.Key your entries by the letters a through i.

Frankin 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?

On a manufacturing company's income statement, direct labor is separately listed as an expense.

When raw materials are purchased, they are recorded as an asset.

Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

Niebla Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July.Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $72,000 and the total of the credits to the account was $77,000.Which of the following statements is true?

In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold.Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs.The beginning and ending balances of Finished Goods were equal, and the Corporation's Cost of Goods Manufactured for the year totaled $71,000.Given this information, Cost of Goods Sold, after adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been:

Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours.The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs.By how much was manufacturing overhead underapplied or overapplied for the year?

The journal entry to record the purchase of raw materials would include a:

How much is Kapanga's work in process inventory balance at the end of October?

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year, the Corporation worked 56,000 actual direct labor-hours and incurred $352,000 of actual manufacturing overhead cost.The Corporation had estimated that it would work 60,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost.The Corporation's manufacturing overhead cost for the year was:

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?

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:

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for June would include the following: