Question 1

A summary of the time tickets for August follows:
​
  Present the journal entries to record (a)the labor cost incurred and (b)the application of factory overhead to production for August.The factory overhead rate is 70% of direct labor cost.

Accepted Answer

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Question 2

Cranston Company estimates the following overhead costs for the coming year:
Equipment depreciation $160,000
Equipment maintenance 60,000
Supervisory salaries 40,000
Factory rent ​ 100,000
Total $360,000
​
Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year.
(a)Calculate the predetermined overhead rate using direct labor costs as the allocation base.
(b)Calculate the predetermined overhead rate using machine hours as the allocation base.

Accepted Answer

The answer of Cranston Company estimates the following overhead costs...

Question 3

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 40,000 hours.The machine hours for the month of April for all of the jobs were 4,780.If the actual factory overhead totaled $141,800,determine the over- or underapplied amount for the month.

Accepted Answer

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Question 4

Define and discuss the two main types of cost accounting systems for manufacturing operations.What are their similarities and differences?

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Question 5

Record the journal entries for the following transactions:
1.
March 10: 500 units of raw materials were purchased on account at $4.00 per unit.
2.
March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production,Job 872.
3.
March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production,Job 879.

Accepted Answer

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Question 6

Technics Inc.,a manufacturing company,utilizes job order costing.Each division establishes its own estimates regarding overhead,which are as follows:
​
Division A Division B
Total estimated overhead $128,000 $261,000
Total estimated machine hours 16,000 72,500
Total estimated direct labor costs $155,000 $290,000
If Division A allocates overhead on the basis of machine hours,and Division B allocates overhead as a percentage of direct labor costs,what would the predetermined overhead rate be for each division?

Accepted Answer

The answer of Technics Inc.,a manufacturing company,utilizes job order costing.Each...

Question 7

At the end of April,Cavy Company had completed Jobs 766 and 765.The individual job cost sheets reveal the following information:
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  Job 765 produced 152 units,and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour,determine the (a)balance on the job cost sheets for each job,and (b)the cost per unit at the end of April.

Accepted Answer

The answer of At the end of April,Cavy Company had...

Question 8

The following account appears in the ledger after only part of the postings have been completed for July,the first month of the current fiscal year:
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  Factory overhead is applied to jobs at the rate of 60% of direct labor cost.The actual factory overhead incurred for July was $75,000.Jobs completed during the month totaled $301,200.

Accepted Answer

The answer of The following account appears in the ledger...

Question 9

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 40,000 hours.The machine hours for the month of April for all of the jobs were 4,780.Prepare the journal entry to apply factory overhead.

Accepted Answer

The answer of The Cavy Company estimates that the factory...

Question 10

Cavy Company completed 26,000 units during the year at a cost of $2,139,800.The beginning finished goods inventory was 5,000 units valued at $405,000.Assuming a FIFO cost flow,determine the cost of goods sold for 20,000 units.

Accepted Answer

The answer of Cavy Company completed 26,000 units during the...

Question 11

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000.The company has determined that the basis for applying factory overhead will be machine hours,which is estimated to be 40,000 hours.There are 4,780 machine hours for all of the jobs in the month of April.What is the amount that will be applied to all of the jobs for the month of April?

Accepted Answer

The answer of The Cavy Company estimates that the factory...

Question 12

Flagler Company allocates overhead based on machine hours.It estimated overhead costs for the year to be $420,000.Estimated machine hours were 50,000.Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.
​
(a)Calculate the overhead application rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under or overapplied overhead for the year? Indicate whether it is over or underapplied.

Accepted Answer

The answer of Flagler Company allocates overhead based on machine...

Question 13

During August,the receipts and distributions of Material No.B4G9 are as follows:
​

Accepted Answer

The answer of During August,the receipts and distributions of Material...

Question 14

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 50,000 hours.The total machine hours for the year were 54,300 hours.The actual factory overhead for the year was $1,375,000.
​
(a)Determine the total factory overhead amount applied.
(b)Calculate the over- or underapplied amount for the year.
(c)Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

Accepted Answer

The answer of The Winston Company estimates that the factory...

Question 15

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

Accepted Answer

The answer of The Cavy Company accumulated 560 hours of...

Question 16

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 50,000 hours.The total machine hours for the year were 54,300.The actual factory overhead for the year were $1,348,800.
​
(a)Determine the total factory overhead amount applied.
(b)Calculate the over- or underapplied amount for the year.
(c)Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

Accepted Answer

The answer of The Winston Company estimates that the factory...

Question 17

National Survey Company uses a job order cost system.

Accepted Answer

The answer of National Survey Company uses a job order...

Question 18

Cavy Company estimates that total factory overhead costs will be $660,000 for the year.Direct labor hours are estimated to be 100,000.
​
Determine (a)the predetermined factory overhead rate; (b)the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800; and (c)prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate.

Accepted Answer

The answer of Cavy Company estimates that total factory overhead...

Question 19

During April,Cavy Company incurred factory overhead as follows:
​
  Record the entry for factory overhead incurred during April.

Accepted Answer

The answer of During April,Cavy Company incurred factory overhead as...

Question 20

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 40,000 hours.Calculate the predetermined overhead rate to apply factory overhead.

Accepted Answer

The answer of The Cavy Company estimates that the factory...

Quiz 16: Job Order Costing

A summary of the time tickets for August follows: Present the journal entries to record (a)the labor cost incurred and (b)the application of factory overhead to production for August.The factory overhead rate is 70% of direct labor cost.

Define and discuss the two main types of cost accounting systems for manufacturing operations.What are their similarities and differences?

Cavy Company completed 26,000 units during the year at a cost of $2,139,800.The beginning finished goods inventory was 5,000 units valued at $405,000.Assuming a FIFO cost flow,determine the cost of goods sold for 20,000 units.

During August,the receipts and distributions of Material No.B4G9 are as follows:

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

National Survey Company uses a job order cost system.

During April,Cavy Company incurred factory overhead as follows: Record the entry for factory overhead incurred during April.

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 40,000 hours.Calculate the predetermined overhead rate to apply factory overhead.

Quiz 16: Job Order Costing

A summary of the time tickets for August follows: ​ Present the journal entries to record (a)the labor cost incurred and (b)the application of factory overhead to production for August.The factory overhead rate is 70% of direct labor cost.

Define and discuss the two main types of cost accounting systems for manufacturing operations.What are their similarities and differences?

Cavy Company completed 26,000 units during the year at a cost of $2,139,800.The beginning finished goods inventory was 5,000 units valued at $405,000.Assuming a FIFO cost flow,determine the cost of goods sold for 20,000 units.

During August,the receipts and distributions of Material No.B4G9 are as follows: ​

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

National Survey Company uses a job order cost system.

During April,Cavy Company incurred factory overhead as follows: ​ Record the entry for factory overhead incurred during April.

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 40,000 hours.Calculate the predetermined overhead rate to apply factory overhead.

A summary of the time tickets for August follows: Present the journal entries to record (a)the labor cost incurred and (b)the application of factory overhead to production for August.The factory overhead rate is 70% of direct labor cost.

During August,the receipts and distributions of Material No.B4G9 are as follows:

During April,Cavy Company incurred factory overhead as follows: Record the entry for factory overhead incurred during April.