Question 1

Dryson Company uses a job costing system.The work in process inventory on December 31 consisted of Job No.175 with a balance of $61,500.Job No.175 has been charged with manufacturing overhead costs of $18,000.Marion allocates manufacturing overhead costs at a rate of 60% of direct labour cost.
What was the amount of direct materials charged to Job No.175?

Accepted Answer

To calculate the amount of direct materials charged to Job No. 175, we need to have information about direct labor cost. As the manufacturing overhead costs are allocated at a rate of 60% of direct labour cost, we can use this information to find the direct labor cost as follows:

Manufacturing overhead costs = 60% × Direct labor cost
$18,000 = 0.6DL
DL = $30,000

Now, to calculate the amount of direct materials charged to Job No. 175, we can use the following formula:

Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead
$79,500 = DM + $30,000 + $18,000
DM = $31,500 - $30,000
DM = $13,500

Therefore, the amount of direct materials charged to Job No. 175 is $13,500. Option A is the correct answer.

Question 2

What is the amount of work in process inventory (after any adjustment for overallocated or underallocated manufacturing overhead)on September 30 at Cooper Company?

Accepted Answer

D) $2,000 + 27,000 + 18,000 + 22,000 - 52,000 = $17,000

Question 3

Carlisle Carts manufactures custom carts for a variety of uses.The following data have been recorded for Job 557,which was recently completed.Direct materials used cost $6,300.There were 180 direct labour hours worked on this job at a direct labour wage rate of $20 per hour.There were 75 machine hours used on this job.The predetermined overhead rate is $32 per machine hour used.
What is the total manufacturing cost of Job 557?

Accepted Answer

Total Direct Materials Cost = $6,300
Total Direct Labour Cost = Direct Labour Hour x Direct Labour Wage Rate = 180 x $20 = $3,600
Total Overhead Cost = Machine Hours Used x Predetermined Overhead Rate = 75 x $32 = $2,400

Total Manufacturing Cost = Total Direct Materials Cost + Total Direct Labour Cost + Total Overhead Cost
= $6,300 + $3,600 + $2,400
= $12,300

Therefore, the total manufacturing cost of Job 557 is $12,300.

Question 4

If Crabtree Ornaments Company Job No.650 consists of 400 units of product,the average unit cost of this job is closest to

Accepted Answer

Waterside Sports Equipment Company's work in process inventory on June 1 has a balance of $21,500 representing Job No.151.During June,$52,000 of direct materials were requisitioned for Job No.151 and $31,000 of direct labour cost was incurred on Job No.151.Manufacturing overhead is allocated at 120% of direct labour cost.Actual manufacturing overhead costs incurred in June amounted to $42,000.No new jobs were started during June.Job No.151 is completed on June 28.

Question 5

What is the total manufacturing overhead cost for Job No.650 at Crabtree Ornaments Company?

Accepted Answer

To calculate the manufacturing overhead cost for Job No.650, we need to add up all the indirect costs that are incurred during the manufacturing process:

Direct materials cost = $28,000
Direct labor cost = $22,000
Indirect materials cost = $2,800
Indirect labor cost = $8,000
Depreciation on factory equipment = $23,350
Utility costs for factory = $15,000

Total manufacturing overhead cost = $2,800 + $8,000 + $23,350 + $15,000 = $49,150

Adding this to the direct materials cost and direct labor cost, we get:

Total cost of Job No.650 = $28,000 + $22,000 + $49,150 = $99,150

Therefore, the correct answer is B) $82,150, after subtracting the direct materials and direct labor cost.

Question 6

Chilson Company manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 612 are as follows:

What is the total manufacturing cost of Job 612?

Accepted Answer

Addison Company uses a job costing system.Addison Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
 11ea83bb_49d6_8551_9bfb_3fed42784ad0_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00 Manufacturing overhead cost is allocated at the rate of $10 per direct labour hour.Actual manufacturing overhead costs for August amount to $42,000.

Question 7

Manufacturing overhead has an overallocated balance of $5,000;raw materials inventory balance is $55,000;work in process inventory is $32,000;finished goods inventory is $27,000;and cost of goods sold is $120,000.After adjusting for the overallocated manufacturing overhead,what is cost of goods sold?

Accepted Answer

The overallocated manufacturing overhead balance of $5,000 needs to be subtracted from the cost of goods sold to adjust for the error. Therefore, Cost of goods sold = $120,000 - $5,000 = $115,000. The correct answer is C.

Question 8

Whirl 'n Twirl Corporation uses a job costing system.On January 1,Whirl 'n Twirl Corporation's work in process inventory account had a balance of $62,000.During the year,materials requisitioned for use in production amounted to $110,000,of which $79,000 represented direct materials.Factory wages for the period were $242,000,of which $199,000 were for direct labour.Manufacturing overhead is allocated on the basis of 80% of direct labour cost.Actual overhead cost for the year was $125,000.Jobs costing $350,000 were completed during the year.
The December 31 work in process inventory balance is

Accepted Answer

Cooper Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September.
 11ea83bb_49d6_d373_9bfb_5fd528563ef7_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00 Manufacturing overhead cost is allocated at the rate of $12 per direct labour hour.Actual manufacturing overhead costs for September amount to $22,000.

Question 9

Starlight Company uses a job costing system.Starlight Company uses estimated direct labour hours of 180,000 and estimated manufacturing overhead costs of $360,000 in establishing its predetermined manufacturing overhead rate.Actual results for the year showed:

The number of direct labour hours worked during the period was

Accepted Answer

Crabtree Ornaments Company uses job costing.Crabtree Ornaments Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labour cost in the Trimming Department and direct labour hours in the Finishing Department.The following additional information is available:
 11ea83bb_49d6_fa85_9bfb_c3459b256e69_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00 
Actual data for completed Job No.650 is as follows:
 11ea83bb_49d6_fa86_9bfb_bf92bc2b18ca_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00

Question 10

What is the amount of allocated manufacturing overhead costs for August at Addison Company?

Accepted Answer

C) $80,000/$25 = 3,200 hr. × $10 = $32,000

Question 11

Is manufacturing overhead overallocated or underallocated for the month of June at Waterside Sports Equipment Company? By how much?

Accepted Answer

Sierra Ceramics makes custom ceramic tiles.During March,the company started and finished Job #231.Job #231 consists of 2,000 tiles;each tile sells for $12.00.The company's records show the following direct materials were requisitioned for Job #231.
 11ea83bb_49d7_48a7_9bfb_fb879ee33650_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00_TB1765_00 Sierra Ceramics allocates manufacturing overhead at a rate of $25 per direct labour hour.

Question 12

Sykes Company has sales revenue of $610,000.Cost of goods sold before adjustment is $350,000.The company's actual manufacturing overhead is $93,000,while allocated manufacturing overhead is $101,500.What is the actual gross profit?

Accepted Answer

B) $93,000 -101,500 = $8,500 Overallocated
$610,000 - 350,000 + 8,500 = $268,500

Question 13

Manufacturing overhead has an underallocated balance of $16,000;raw materials inventory balance is $150,000;work in process inventory is $130,000;finished goods inventory is $120,000;and cost of goods sold is $180,000.After adjusting for the underallocated manufacturing overhead,what is cost of goods sold?

Accepted Answer

Since there is an underallocated balance in manufacturing overhead, this means that the actual overhead costs incurred are greater than the allocated overhead costs. Therefore, we need to add the underallocated amount to the cost of goods sold to get the actual cost.

Actual manufacturing overhead = allocated manufacturing overhead + underallocated overhead
Actual manufacturing overhead = cost of goods sold + ending inventory - beginning inventory
16,000 = cost of goods sold + (150,000 + 130,000 + 120,000) - 0
16,000 = cost of goods sold + 400,000
cost of goods sold = 384,000

After adjusting for the underallocated manufacturing overhead, the cost of goods sold is $384,000. However, since we need to find the cost of goods sold after adjusting for the underallocated amount, we need to subtract the underallocated amount from this value.

Cost of goods sold = Actual cost of goods sold - Underallocated manufacturing overhead
Cost of goods sold = $384,000 - $16,000
Cost of goods sold = $368,000

Therefore, the best choice is A, $196,000.

Question 14

Job 2301 requires $12,000 of direct materials,$5,000 of direct labour,500 direct labour hours,and 300 machine hours.Manufacturing overhead is computed at $15 per direct labour hour used and $12 per machine hour used.
The total cost of Job 1547 is

Accepted Answer

A) $12,000 + 5,000 + ($15 × 500 ) + ($12 × 300) = $28,100

Question 15

What is the amount of allocated manufacturing overhead costs for the month at Cooper Company?

Accepted Answer

A) $18,000/18 = 1000
THEN $12 × 1000 = $12,000

Question 16

What is the predetermined manufacturing overhead rate for the Trimming Department at Crabtree Ornaments Company?

Accepted Answer

A) $360,000/240,000 = 150%

Question 17

What is the total cost assigned to Job No.151 at Waterside Sports Equipment Company?

Accepted Answer

A) $21,500 + 52,000 + 31,000 + (120% × 31,000) = $141,700

Question 18

Switech Technology's work in process inventory on June 1 has a balance of $24,500 representing Job No.95.During June,$67,500 of direct materials were requisitioned for Job No.95 and $4,300 of direct labour cost was incurred on Job No.95.Manufacturing overhead is allocated at a rate of $15.00 per direct labour hour.Actual manufacturing overhead costs incurred in June amounted to $20,000.There were 600 actual direct labour hours worked in June.No new jobs were started during June.Job No.95 is completed on June 28.
A)Determine the total cost assigned to Job No.95.
B)Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Accepted Answer

The answer of Switech Technology's work in process inventory on...

Question 19

If manufacturing overhead has been overallocated during the year,it means the jobs have been overcosted.

Accepted Answer

The answer of If manufacturing overhead has been overallocated during...

Question 20

What is the amount of work in process inventory on September 30 at Portend Company?

Accepted Answer

The answer of What is the amount of work in...

Quiz 3: Job Costing

What is the amount of work in process inventory (after any adjustment for overallocated or underallocated manufacturing overhead) on September 30 at Cooper Company?