In Crawford company, the predetermined overhead rate is 80% of direct labor cost. During the month, Crawford incurs $210,000 of factory labor lost, of which $180,000 is direct labor and $30,000 is indirect labor. Actual overhead incurred was $200,000. The amount of overhead debited to work in process inventory should be:
a. $200,000
b. $144,000
c. $168,000
d. $160,000
Mynex Company completes
Job No. 26 at a cost of $4,500 and later sells it for $7,000 cash. A correct entry is:
a. debit finished goods inventory $7,000 and credit work in process
inventory $7,000
b. debit Cost of goods sold $7,000 and credit finished goods
inventory $7,000
c. debit finished goods inventory $4,500 and credit work in process
inventory $4,500
d. debit accounts recievale $7,000 and credit sales revenue $7,000
During the current year, Carlisle Manufacturing expected Job No. 16 to cost $450,000 of overhead, $750,000 of materials, and $300,000 in labor. Carlisle applied overhead based on direct labor cost. Actual production required an overhead cost of $420,000, $825,000 in materials used, and $330,000 in labor. All of the goods were completed. What is the amount of over- or under-applied overhead?
a.$30,000 overapplied.
b.$75,000 underapplied.
c.$75,000 overapplied.
d.$30,000 underapplied.
In the current year, Mitchell Manufacturing expected Job No. 13 to cost $600,000 of overhead, $650,000 of materials, and $400,000 of labor. Mitchell applied overhead based on direct labor cost. Actual production required an overhead cost of $420,000, $750,000 of materials used, and $300,000 of labor. All of the goods were completed. What amount was transferred from Work in Process to Finished Goods?
a.$1,650,000.
b.$1,470,000.
c.$1,670,000.
d.$1,500,000.
If
Hawkins Manufacturing purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the Raw Materials Inventory would have
This is correct answer :
A
debits equaling $19,000.
B
credits equaling $21,000.
You got it wrong :
C
debits equaling $21,000.
D
credits equaling $19,000.
In the month of October, Tran Incorporated had salaries of $15,000 for factory managers, $18,000 for financial managers, and $42,000 for company executives. They also had wages of $98,000 for factory workers and $64,000 for office workers. How much would the balance of the Factory Labor account change between October 1 and October 31?
A
increase by $237,000
You got it correct :
B
increase by $113,000
C
decrease by $83,000
D
increase by $195,000
Wilder, Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 305, the only job still in process at the end of August, has been charged with manufacturing overhead of $2,250. Assuming the balance in Work in Process Inventory is $9,000, the amount of direct materials charged to Job 305 is
A
$4,250.
B
$9,000.
C
$2,500.
D
$2,250.
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JOB ORDER COST ACCOUNTING
TRUE-FALSE STATEMENTS
1.Cost accounting is primarily concerned with accumulating information about product costs.
2.A job order cost system is most appropriate when a large volume of uniform products are
produced.
3.A process cost accounting system is appropriate for homogeneous products that are
continuously mass produced.
4.The perpetual inventory method cannot be used in a job order cost system.
5.A job order cost system and a process cost system are two alternative methods for
valuing inventories.
6.A job order cost system identifies costs with a particular job rather than with a set time
period.
7.A company may use either a job order cost system or a process cost system, but not both.
8.Raw Materials Inventory, Factory Labor, and Manufacturing Overhead are all control
accounts in the general ledger when a job order cost accounting system is used.
9.Accumulating and assigning manufacturing costs are two important activities in a job order
cost system.
10.Recording the acquisition of raw materials is a part of accumulating manufacturing costs.
11.Manufacturing costs are generally incurred in one period and recorded in a subsequent
period.
12. The Purchases account is credited for all raw materials purchase returns and allowances.
13.The stores ledger cards are the subsidiary ledger for Raw Materials Inventory control
account in the general ledger.
14.When raw materials are purchased, the Work in Process Inventory account is debited.
15.Factory labor should be assigned to selling and administrative expenses on a
proportionate basis.
16.Fringe benefits and payroll taxes associated with factory workers should be accumulated
as a part of Factory Labor.
17.Job order cost sheets constitute the subsidiary ledger of the control account Work In
Process Inventory.
18.In a job order cost system, each entry to the Work In Process Inventory account should be
accompanied by a posting to one or more job cost sheets.
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