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

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Question 81

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Jaquish Inc. has provided the following data for the month of January. 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 company 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 overhead applied during the month in those accounts. -The finished goods inventory at the end of January after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

A) $25,720
B) $27,653
C) $25,707
D) $27,640

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

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Question 82

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Refer to the T-account below: Entry (12) could represent which of the following?

A) Direct labor cost incurred in production.
B) Purchases of raw materials.
C) The cost of goods manufactured transferred to Finished Goods.
D) The cost of indirect materials incurred in production.

E) None of the above
F) All of the above

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Question 83

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Lister Corporation is a manufacturer that uses job-order costing.The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year.The company has supplied the following data for the just completed year: Results of operations: The total amount of manufacturing overhead applied to production is:

Calfee Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: $\begin{array}{ll}\text { Beginning inventories: }\\\text { Raw materials. }&\$40,000\\\text { Work in process }&\$19,000\\\text { Estimated total manufacturing overhead at the beginning of the year }&\$595,000\\\text { Estimated direct labor-hours at the beginning of the year }&35,000 \text { direct labor-hour }\end{array}$ Results of operations: The ending balance in the Work in Process inventory account is:

Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.For the month of August,Karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours.Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours.As a result,Karvel would have:

St.Johns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period: Manufacturing overhead for the period was:

On January 1, Schaf Corporation had $23,000 of raw materials on hand. During the month, the company purchased an additional $54,000 of raw materials. During January, $50,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. -The journal entry to record the purchase of raw materials would include a:

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs: Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19. -How much is Kapanga's cost of goods manufactured for October?

Emigh Corporation's cost of goods manufactured for the just completed month was $146,000 and its overhead was overapplied by $5,000.The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $37,000.The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600. -The applied manufacturing overhead for the year was closest to:

Shantz Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: a.Prepare a Schedule of Cost of Goods Manufactured for the month. b.Prepare a Schedule of Cost of Goods Sold for the month.

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of cost of goods manufactured for the year?

Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories. (1) Raw materials purchased for cash, $96,000 (2) Direct materials requisitioned for use in production, $69,000 (3) Indirect materials requisitioned for use in production, $22,000 (4) Direct labor wages incurred and paid, $129,000 (5) Indirect labor wages incurred and paid, $16,000 (6) Additional manufacturing overhead costs incurred and paid, $121,000 (7) Manufacturing overhead costs applied to jobs, $163,000 (8) All of the jobs in process were completed. (9) All of the completed jobs were shipped to customers. (10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold. Enter the transactions in the T-accounts below and then answer the following questions. -The manufacturing overhead is:

Reith Inc. has provided the following data for the month of November. 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 overapplied by $4,000. The company 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 overhead applied during the month in those accounts. -The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for November would include the following:

Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Results of operations: -The cost of goods available for sale is:

Gullett Corporation had $26,000 of raw materials on hand on November 1.During the month,the Corporation purchased an additional $75,000 of raw materials.The journal entry to record the purchase of raw materials would include a:

On January 1, Schaf Corporation had $23,000 of raw materials on hand. During the month, the company purchased an additional $54,000 of raw materials. During January, $50,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. -The journal entry to record the requisition from the storeroom would include a:

Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September.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 $76,000 and the total of the credits to the account was $66,000.Which of the following statements is true?

On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: -The credits to the Raw Materials account for the month of November total:

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.