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Exam 3: Job-Order Costing

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Question 41

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Baker 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 $210, 600 and 6, 000 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $209, 000 and actual direct labor-hours were 5, 980. The applied manufacturing overhead for the year was closest to:

A) $208, 283
B) $209, 001
C) $209, 898
D) $209, 180

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

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Question 42

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Buth Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.During May, the cost of goods manufactured was $145, 000 and manufacturing overhead was overapplied by $3, 000.The beginning finished goods inventory was $47, 000 and the ending finished goods inventory was $49, 000. The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for May is closest to:

A) $140, 000
B) $143, 000
C) $145, 000
D) $147, 000

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

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Question 43

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Tondre Inc.has provided the following data for the month of July: The cost of goods manufactured for July is:

Westgaard Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In March the company completed job G87M that consisted of 22, 000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job G87M shows that the job's total cost was $1, 179, 200.During the month, the actual manufacturing overhead cost incurred was $323, 840 and the manufacturing overhead cost applied was $347, 600.And during the month, 4, 000 completed units from job G87M were sold.No other products were sold during the month. Required: Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead)for March.Show your work!

The cost of goods sold in a single product company is equal to the number of units sold multiplied by their unit product cost, plus any overapplied overhead or less any underapplied overhead.

Schrum Inc. , which uses job-order costing, has provided the following data for October: Required: Determine the cost of goods manufactured for October.Show your work!

Mat Corporation's actual manufacturing overhead cost for the month ended March 31 was $78, 000.The company's predetermined overhead rate was 50% of direct labor cost.Other information pertaining to Mat Corporation's inventories and production for the month of March is as follows: Required: a.Determine the underapplied or overapplied overhead for the month. b.Determine the Cost of Goods Manufactured for the month.

Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.At the beginning of the year, manufacturing overhead and direct labor-hours for the year were estimated at $50, 000 and 20, 000 hours, respectively.In June, Job #461 was completed.Materials costs on the job totaled $4, 000 and labor costs totaled $1, 500 at $5 per hour.At the end of the year it was determined that the company worked 24, 000 direct labor-hours for the year and incurred $54, 000 in actual manufacturing overhead costs. The manufacturing overhead for the year was:

Sigel Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 52, 000 machine-hours.The estimated variable manufacturing overhead was $3.40 per machine-hour and the estimated total fixed manufacturing overhead was $624, 520. Required: Compute the company's predetermined overhead rate.

Amir Inc.uses a job-order costing in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for November: Required: Determine the cost of goods sold that would appear on the company's income statement for November;in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.Show your work!

Even though a job is not completed at year end, manufacturing overhead cost may be applied to that job when a predetermined overhead rate is used.

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

Caber Corporation applies manufacturing overhead on the basis of machine-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60, 600.Actual manufacturing overhead for the year amounted to $59, 000 and actual machine-hours were 5, 900.The company's predetermined overhead rate for the year was $10.10 per machine-hour. The predetermined overhead rate was based on how many estimated machine-hours?

The job cost sheet:

Two of the reasons why manufacturing overhead may be underapplied are: (1)the estimated total manufacturing overhead cost may have been too high;and (2)the estimated total amount of the allocation base may have been too low.

Mcadams Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In April the company completed job C21F that consisted of 18, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost on job C21F's job cost sheet was $702, 000.The manufacturing overhead for the month was underapplied by $10, 080.During the month, 13, 000 completed units from job C21F were sold.No other products were sold during the month. The unit product cost for job C21F is closest to:

Catala Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for March: The cost of goods manufactured for March is closest to:

Feltman Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for July: The cost of goods sold that appears on the income statement for July and that has been adjusted for any underapplied or overapplied overhead is closest to:

Crombie Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for June: The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for June is closest to:

Dapper Corporation had only one job in process on May 1.The job had been charged with $3, 400 of direct materials, $4, 640 of direct labor, and $9, 200 of manufacturing overhead cost.The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the following activity was recorded: Work in process inventory on May 30 contains $7, 540 of direct labor cost.Raw materials consist solely of items that are classified as direct materials. The balance in the raw materials inventory account on May 30 was: