Q&A Hero

Q: At the beginning of the recent period, there were 900 units of product in a department, one-third completed. These units were finished and an additional 5,000 units were started and completed during the period. 800 units were still in process at the end of the period, one-fourth completed. Using the weighted average method, the equivalent units produced by the department were: A. 5,000 units. B. 5,900 units. C. 6,100 units. D. 5,500 units. E. 6,700 units.

Q: A company's beginning work in process inventory consisted of 20,000 units that were 1/5 complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were 1/3 complete at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were: A. 60,000. B. 74,000. C. 76,000. D. 90,000. E. 96,000.

Q: A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. The department completed and transferred out 127,500 units this period. The ending inventory consists of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is: A. $0.14. B. $0.16. C. $0.17. D. $0.30. E. $0.37.

Q: The Machining Department started the current month with a beginning goods in process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Goods in Process Inventory account for the Machining Department is: A. $ 13,000. B. $ 56,000. C. $ 59,000. D. $110,000. E. $165,000.

Q: Which of the following statements is most accurate? A. In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials. B. The weighted average method uses the stage of completion of the current period's beginning goods in process inventory account in calculating equivalent units. C. The weighted average method focuses on the total costs and total equivalent units completed to date; this is the major difference between the weighted average method and the FIFO method of calculating equivalent units of production. D. The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period. E. It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.

Q: Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system? A. Determine over or underapplied overhead. B. Determine the physical flow of units. C. Compute equivalent units of production. D. Compute the cost per equivalent unit. E. Assign and reconcile costs.

Q: Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment? A. In most manufacturing environments, it is not possible to conduct a physical count of units. B. Companies often use a combination of a process costing and job order costing systems. C. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process. D. All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period. E. In most cases, there is no difference between physical units and equivalent units of production.

Q: Equivalent units of production are equal to: A. The number of units that could have been completed if all effort had been applied to units that were started and completed during a period. B. The number of finished units actually produced during a period. C. The number of units introduced into the process during a period. D. The number of units still in process at the end of a period. E. Physical units that were started and completed during a period.

Q: A measure of the productivity of a process with respect to its use of direct materials, direct labor, or overhead, and an expression of the activity of a process as the number of units that would have been processed during a period if all effort had been applied to units that were started and finished during the period, is called: A. Manufacturing overhead. B. Units in process. C. A job cost sheet. D. Equivalent units of production. E. Process cost summary.

Q: Which of the following characteristics applies to process cost accounting but not to job order cost accounting? A. Use of a predetermined overhead rate. B. Identifiable lots of production. C. Equivalent units of production. D. Labor time ticket for each employee. E. Use of a single Goods in Process Inventory account.

Q: Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is: A. Debit Factory Overhead Assembly $112,500; debit Factory Overhead Finishing $31,500; credit Goods in Process Inventory $144,000. B. Debit Factory Overhead $144,000; credit Goods in Process Inventory Assembly $112,500; credit Goods in Process Finishing $31,500. C. Debit Factory Overhead $144,000; credit Factory Payroll $144,000. D. Debit Goods in Process Inventory - Assembly $112,500; debit Goods in Process Inventory Finishing $31,500; credit Factory Overhead $144,000. E. Debit Factory Payroll $144,000; credit Cash $144,000.

Q: Which of the following characteristics does not usually apply to process manufacturing systems? A. Each unit of product is separately identifiable. B. Partially completed products are transferred between processes. C. Different managers are responsible for different processes. D. The output of all processes except the final process is an input to the next process. E. All of the choices include characteristics of process manufacturing systems.

Q: Which of the following products is least likely to be produced in a process manufacturing system? A. Compact disks B. Slacks for casual wear C. Baseball hats D. Calculators E. Custom cabinets

Q: The cost of units transferred from Goods in Process Inventory to Finished Goods Inventory is called the cost of goods manufactured.

Q: Since the process cost summary describes the activities of a production department for a specified reporting period, it does not present information about any costs incurred in prior periods.

Q: The process cost summary presents calculations of the cost of units completed during the reporting period, but does not present any information about the ending goods in process inventory.

Q: A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

Q: One section of the process cost summary describes the equivalent units of production for the department during the reporting period and presents the calculations of the costs per equivalent unit.

Q: If a department that applies process costing starts the reporting period with 50,000 physical units that were 25% complete with respect to direct materials and 40% complete with respect to direct labor, it must add 12,500 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

Q: Once equivalent units are calculated for materials, this number will also be used for direct labor and factory overhead.

Q: If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period, the equivalent units of production with respect to direct labor also must be 100.

Q: In the same time period, it is possible that a production department can produce 1,000 equivalent finished units with respect to direct materials and 1,200 equivalent finished units with respect to direct labor.

Q: The number of equivalent units of production assigned to ending goods in process inventory should be equal to or less than the number of physical units in ending goods in process inventory.

Q: If the predetermined overhead allocation rate is 225% of direct labor cost, and the Mixing Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department: Goods in Process Inventory, Mixing Dept....................................... 225,000 Factory Overhead.. 225,000

Q: If the predetermined overhead allocation rate is 85% of direct labor cost, and the Painting Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department: Factory Overhead 17,000 Goods in Process Inventory, Painting Dept 17,000

Q: If the predetermined overhead allocation rate is 350% of direct labor cost and the Painting Department's direct labor cost for the reporting period is $20,000, the following entry would record the allocation of overhead to the products processed in this department: Goods in Process Inventory, Painting Dept......................................... 70,000 Factory Overhead. . 70,000

Q: A process cost accounting system records all factory overhead costs directly in the Goods in Process Inventory accounts.

Q: In process costing, indirect materials are charged directly to Goods in Process Inventory.

Q: In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

Q: If the indirect materials cost for a reporting period was $37,500, the following journal entry would be recorded in the process cost accounting system: Factory Overhead.................. 37,500 Raw Materials Inventory 37,500

Q: In a process cost accounting system, factory overhead costs can be allocated to production departments by using a predetermined overhead allocation rate.

Q: If Department G uses $53,000 of direct labor and Department H uses $21,000 of direct labor, the following journal entry would be recorded using a process cost accounting system: Goods in Process Inventory, Department G.......................... 53,000 Goods in Process Inventory, Department H.......................... 21,000 Factory Payroll 74,000

Q: The following journal entry would be made to record the use of $6,100 of direct labor in a production department during the reporting period: Factory Payroll............................................................. .................................................... 6,100 Goods in Process Inventory. 6,100

Q: In a process costing system, factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.

Q: In some circumstances, a process cost accounting system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

Q: In process cost accounting, direct labor includes only the labor that is applied directly to the products.

Q: A __________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost, and is used to allocate factory overhead to specific jobs.

Q: In a job order cost accounting system, raw materials requisitioned as direct materials are debited to __________________; indirect materials are debited to ________________.

Q: When a job is finished, its job cost sheet is completed and moved from the jobs in process file to the ____________________ file.

Q: The collection of job cost sheets for all jobs in process makes up the subsidiary ledger controlled by the _____________________ inventory.

Q: A pricing method where the customer pays the manufacturer for costs incurred on the job plus a negotiated amount or rate of profit is known as a _________________________ basis.

Q: _______________________, or customized production, produces products in response to customer orders.

Q: A ________ accounting system records production activities using a periodic inventory system. A ________ accounting system records production activities using a perpetual inventory system.

Q: The predetermined overhead allocation rate for Millay Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000. Actual costs incurred were: Direct materials................................................................... $475,000 Direct labor................................................................... 347,000 Indirect materials................................................................... 78,000 Indirect labor................................................................... 143,500 Sales commissions................................................................... 150,000 Factory depreciation................................................................... 260,000 Property taxes, factory................................................................... 35,000 Factory utilities................................................................... 65,000 Advertising................................................................... 62,500 Factory supervision................................................................... 185,000 a. Calculate the predetermined overhead rate and calculate the overhead applied during the year. b. Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.

Q: Sail Away takes special orders to manufacture sail boats for high end customers. Complete the job cost sheets for Sail Away for September based on the following information. Prepare journal entries to record the transactions as well as post to the job cost sheets. a. Purchased raw materials on credit, $145,000. b. Materials requisitions: Job 240, $48,000; Job 241, $36,000; Job 242, $42,000; indirect materials were $12,000. c. Paid $130,000 for factory wages. d. Time tickets used to charge labor to jobs: Job 240, $40,000; Job 241, $30,000; Job 242, $35,000, indirect labor is $25,000. e. The company incurred the following additional overhead costs: depreciation of factory building, $70,000; depreciation of factory equipment, $60,000; expired factory insurance, $10,000; utilities and maintenance cost of $20,000 were paid in cash. f. Applied overhead to all three jobs. The predetermined overhead rate is 190% of direct labor cost. g. Transferred jobs 240 and 242 to Finished Goods Inventory. h. Sold job 240 for $300,000 for cash. i. Closed the under- or over-applied overhead account balance. Job Cost Sheets 240 241 242 Total For the current month Direct materials Direct labor Applied overhead Total costs

Q: Whittier Manufacturing uses a job order cost accounting system that charges overhead to jobs on the basis of direct labor cost. Whittier used the following cost predictions: overhead costs $1,285,750, and direct labor costs of $695,000. At year-end, the companys records show that actual overhead costs for the year are $1,278,800, and actual direct labor costs are $692,000. a. Determine the predetermined overhead rate for the year. b. Compute the amount of overapplied or underapplied overhead. c. Prepare the adjusting entry to allocate the over- or underapplied overhead assuming the amount if immaterial.

Q: Wilkes Manufacturing uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following. Date Explanation Debit Credit Balance Dec. 31 Direct materials cost 980,000 980,000 31 Direct labor cost 320,000 1,300,000 31 Overhead costs 637,000 1,937,000 31 To finished goods 1,818,000 119,000 a. Determine the overhead rate used (based on direct material cost). b. Only one job remained in the goods in process inventory at December 31. Its direct materials cost is $60,000. How much direct labor cost and overhead cost are assigned to it?

Q: At the end of June, the job cost sheets for Monson Manufacturing show the following total costs accumulated on three custom jobs. Job 203 Job 204 Job 205 Direct materials $32,000 $47,000 $43,000 Direct labor 18,000 22,000 25,000 Overhead 26,100 31,900 36,250 Job 203 was started in production in May and the following costs were assigned to it in May: direct materials, $12,000; direct labor, $6,000; and overhead $8,700. Jobs 204 and 205 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 203 and 204 are finished in June, and Job 205 will be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions assuming the companys predetermined overhead rate did not change. a. What is the cost of the raw materials requisitioned in June for each of the three jobs? b. How much direct labor cost is incurred during June for each of the three jobs? c. What predetermined overhead rate is used during June? d. How much total cost is transferred to finished goods during June?

Q: Marshall Corp. uses a job order cost accounting system and worked only on Job 101 during the current period. Job 101 was sold for $460,000. The following information pertains to costs incurred for Job 101. Direct Materials $90,000 Indirect Materials $30,000 Direct Labor $130,000 Indirect Labor $75,000 Depreciation of Machinery $10,000 Factory Supplies $8,000 Overhead Application Rate 90% of direct labor Determine the amount of gross profit earned on Job 101.

Q: Samer Corp. uses a job order cost accounting system. The following is selected information pertaining to costs applied to jobs during the year: Jobs still in process at the end of the year: $167,000, which includes $65,000 direct labor costs. Jobs finished and sold during the year: $395,000, which includes $172,000 direct labor costs. Jobs finished but unsold during the year: $103,000, which includes $38,000 direct labor costs. Samer Corp.'s predetermined overhead allocation rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of factory overhead has been incurred. (a) Determine the amount of overapplied or underapplied overhead. (b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

Q: A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold. At year-end, the company's Factory Overhead account has a credit balance of $9,000, which is not a material amount. What entry (if any) should the company make at year-end related to this overhead balance?

Q: The predetermined overhead allocation rate for Forsythe, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were: Direct materials.. $250,000 Direct labor.. 410,000 Indirect materials 55,000 Indirect labor.. 125,000 Sales commissions. 50,000 Factory depreciation 170,000 Property taxes, factory... 15,000 Factory utilities.. 35,000 Advertising..... 62,500 Factory equipment rental 100,000 (a) Calculate the predetermined overhead rate and calculate the overhead applied during the year. (b) Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.

Q: The following calendar year information about the Tahoma Corporation is available on December 31: Advertising expense $ 28,800 Depreciation of factory equipment 42,320 Depreciation of office equipment.. 10,800 Direct labor 142,600 Factory utilities... 35,650 Interest expense... 6,650 Inventories, January 1: Raw materials 3,450 Goods in process 17,250 Finished goods... 35,600 Inventories, December 31: Raw materials.. 2,300 Goods in process.. 20,700 Finished goods 31,050 Raw materials purchases 132,450 Rent on factory building 41,400 Indirect labor.. 51,750 Sales commissions.. 16,500 The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.

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Q: A company's job order cost accounting system applies overhead based on direct labor cost. The company's estimated production costs for were: direct labor, $57,600; direct materials, $76,800; and factory overhead, $9,600. Calculate the company's overhead allocation rate.

Q: Bean Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor. Bean estimates that its overhead next period will be $65,000. The company also expects to incur $100,000 of direct labor. If Bean bases its overhead applied on direct labor cost, what should be the overhead allocation rate for the next period?

Q: A manufacturing company uses an overhead allocation rate based on direct labor cost. The company's Goods in Process Inventory account has a $15,000 debit balance after all posting is completed, and the cost sheet of the one job still in process shows direct material costs of $6,600 and direct labor costs of $3,000. What is the company's overhead application rate?

Q: Selected information from the budget of the Khalid Corp. at the beginning of the year follows: Estimated factory overhead..................................... $132,000 Estimated direct labor hours..................................... 55,000 hours Estimated machine hours... 41,250 hours Estimated direct labor cost..................................... $825,000 Actual factory overhead incurred during the year................................ $144,000 Calculate the predetermined overhead allocation rate if the company uses the following as a basis: (a) Direct labor hours. (b) Direct labor cost. (c) Machine hours.

Q: A company's predetermined overhead allocation rate is 130% based on direct labor cost. How much overhead would be allocated to Job No. 105 if it required total direct labor costs of $60,000?

Q: The following information is available for the Millennium Corporation for the current year: Cost of goods sold .. $292,000 Depreciation of factory equipment . 25,200 Direct labor .. 64,750 Finished goods inventory, Beginning-year . 45,000 Factory insurance 11,200 Factory utilities 16,800 Goods transferred from Goods in Process Inventory to Finished Goods Inventory 285,150 Indirect labor 8,400 Raw materials inventory, Beginning-year.... 4,200 Raw materials purchased . 116,200 Raw materials used in production (includes $7,000 of indirect materials) ..... 121,800 Rent on factory building ... 22,400 Millennium Corporation uses a predetermined overhead rate of 150% of direct labor cost. Prepare journal entries for the following transactions and events: (a) Purchase of raw materials on account. (b) Assignment of materials costs to Goods in Process Inventory and Factory Overhead. (c) Payment of Factory Payroll in cash. (d) Assignment of Factory Payroll to Goods in Process Inventory and Factory Overhead. (e) Recording of other factory overhead. Assume that all items other than depreciation are paid in cash. (f) Assignment of Factory Overhead to Goods in Process Inventory. (g) Transfer of goods completed to Finished Goods Inventory. (h) Recording cost of goods sold. (i) Assignment of over- or underapplied overhead to Cost of Goods Sold.

Q: Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the costs incurred: Job # Material Used Direct Labor Used Direct Labor Hours Used 1010 $45,000 $72,000 8,000 1011 59,000 77,000 7,000 1012 35,000 30,000 3,000 1013 26,000 40,000 5,000 Actual overhead costs were $55,800. The predetermined overhead allocation rate is $2.40 per direct labor hour. During the year, Jobs 1010, 1012, and 1013 were completed. Also, Jobs 1010 and 1013 were sold for $387,000. Assuming that this is Dina's first year of operations: (a) Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs. (b) Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Factory Overhead accounts. Does the Factory Overhead account balance indicate an over- or underapplied overhead?

Q: Selwyn's Service applied overhead on the basis of direct labor costs during the current year. Overhead applied was $16,500. Actual overhead incurred was $17,200. (a) Prepare a journal entry to remove this difference assuming that it is not material. (b) Instead, assume actual overhead incurred was only $24,000. Describe (without computations) the alternative procedure that Selwyn might use to record this material difference.

Q: Medlar Corp. maintains a Web-based general ledger. Overhead is applied on the basis of direct labor costs. Its bookkeeper accidentally deleted most of the entries that had been recorded for January. A printout of the general ledger (in T-account form) showed the following: Raw Materials Inventory Goods in Process Inventory Ba1.1/1 10,000 Bal 1/1 4,000 f) a) b) c) d) e) 17,500 g) Accounts Payable Finished Goods Inventory h) Bal. 1/1 5,000 i) I) i) k) Bal. 1/31 9,000 Bal. 1/31 15,000 Factory Overhead Cost of Goods Sold m) n) o) A review of the prior year's financial statements, the current year's budget, and January's source documents produced the following information: (1) Accounts Payable is used for raw material purchases only. January purchases were $49,000. (2) Factory overhead costs for January were $17,000 none of which is indirect materials. (3) The January 1 balance for finished goods inventory was $10,000. (4) There was a single job in process at January 31 with a cost of $2,000 for direct materials and $1,500 for direct labor. (5) Total cost of goods manufactured for January was $90,000. (6) All direct laborers earn the same rate ($13/hour). During January, 2,500 direct labor hours were worked. (7) The predetermined overhead allocation rate is based on direct labor costs. Budgeted (expected) overhead for the year is $195,000 and budgeted (expected) direct labor is $390,000. Fill in the missing amounts a through o above in the T-accounts above.

Q: The overhead allocation rate in Frantz Company's job order cost accounting system applies overhead based on direct labor costs. The company's manufacturing costs for the current year were: direct materials, $108,000; direct labor, $144,000; and factory overhead, $18,000. At year-end, the total cost of goods in process is $36,000, which includes $12,000 of direct labor cost. What amount of direct material cost is included in the ending goods in process inventory?

Q: A company uses a job order cost accounting system and applies overhead on the basis of direct labor cost. A summary of the company's Goods in Process Inventory account for December appears below. Goods in Process Date Explanation PR Debit Credit Balance Dec. 1 73,800 Dec. Direct Materials G-20 235,800 309,600 Dec. Direct Labor G-20 117,000 426,600 Dec. Factory Overhead G-20 187,200 613,800 Dec. Job No. 5 completed G-8 90,900 522,900 Dec. Job No. 6 completed G-10 131,400 391,500 Dec. Job No. 7 completed G-12 73,800 317,700 Dec. 31 Job No. 8 completed G-15 168,300 149,400 Fill in the blanks for the following: (1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory is $_______________________. (2) The company's overhead application rate is __________________% (3) Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost. (4) Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.

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Q: Prepare journal entries to record the following transactions and events for April using a job order cost accounting system. (a) Purchased raw materials on credit, $69,000. (b) Raw materials requisitioned: $26,000 direct and $5,400 indirect. (c) Factory payroll totaled $46,000 (paid in cash), including $9,500 indirect labor. (d) Paid other actual overhead costs totaling $14,500 cash. (e) Applied overhead totaling $28,200. (f) Finished and transferred jobs totaling $77,500. (g) Jobs costing $58,800 were sold on credit for $103,000.

Q: Key Manufacturing Co. applies factory overhead to production on the basis of direct labor costs. Assume that at the beginning of the current year the company estimated that direct material costs would be $178,800, direct labor costs would be $154,000, and factory overhead costs would be $231,000. (1) If the $28,000 cost of Key's goods in process inventory included $5,200 of direct labor cost, what amount of direct materials cost was included? (2) If $8,100 of the company's $34,300 finished goods inventory was direct materials cost, determine the direct labor cost and factory overhead cost of the finished goods inventory.

Q: PRO, Inc. had the following activities during its most recent period of operations: (a) Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account). (b) Issued raw materials to production of $130,000 (80% direct and 20% indirect). (c) Incurred and paid factory labor costs of $250,000 cash; allocated the factory labor costs to production (70% direct and 30% indirect). (d) Incurred factory utilities costs of $20,000; this amount is still payable. (e) Applied overhead at 80% of direct labor costs. (f) Recorded factory depreciation, $22,000. Prepare journal entries to record the above transactions.

Q: BC Company uses a job order cost accounting system. During the month of April, the following events occurred: (a) Purchased raw materials on credit, $32,000. (b) Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials. (c) Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor. (d) Assigned the factory payroll to jobs and overhead. Make the necessary journal entries to record the above transactions and events.

Q: Plumley Ad Agency contracted with a company to prepare an ad campaign. Plumley uses a job order costing system. Plumley estimates that the job will take 145 designer hours at $90 per hour and 85 staff hours at $45 per hour. Plumley uses two overhead rates in applying overhead to jobs: Designer-related at $100 per designer hour and staff-related at $50 per staff hour. Determine the total estimated cost for this job.

Q: Time tickets for factory employees during the month of August are summarized as follows: Job 919 $ 9,800 Job 920 14,650 Job 921 12,250 Job 922 16,000 Total direct labor. $52,700 Indirect labor... 16,800 Total labor cost... $69,500 Make the necessary journal entries to record factory payroll.

Q: Minchoy Corporation uses a job order cost accounting system. Five jobs were worked on during the current year. The predetermined overhead rate is 20% of direct labor costs. The following cost information is available (all materials and time ticket information applies to direct costs): Job Materials Requisitions Time Tickets 101 $66,000 $32,000 102 $63,000 $74,000 103 $39,000 $50,000 104 $32,000 $36,000 105 $53,000 $68,000 Part 1Complete the job cost sheets for each job. Job No. 101 Job No. 102 Job No. 103 Materials Materials Materials Labor Labor Labor Overhead Overhead Overhead Total Cost Total Cost Total Cost Status In Process Status Sold Status Finished Job No. 104 Job No. 105 Materials Materials Labor Labor Overhead Overhead Total Cost Total Cost Status Sold Status Finished Part 2Identify the amounts of each of the following accounts at the end of the period a. Work in Process____________________ b. Finished Goods____________________ c. Cost of Goods Sold____________________

Q: The Terrapin Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during June of the current year. This table summarizes information provided on each sheet: Number Total Cost Incurred Status of Job 951 $ 4,200 Finished and delivered 952 $ 7,700 Unfinished 953 $ 9,300 Finished and unsold 954 $11,100 Finished and delivered 955 $ 3,000 Finished and unsold 956 $ 5,500 Finished and delivered 957 $35,000 Unfinished 958 $ 3,200 Finished and delivered 959 $ 500 Unfinished 960 $22,110 Unfinished 961 $ 7,200 Finished and unsold 962 $ 8,500 Unfinished 963 $11,200 Finished and unsold (a) What is the cost of the goods in process inventory on June 30? (b) What is the cost of the finished goods inventory on June 30? (c) What is the cost of goods sold for the month of June?

Q: The Johnson Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during March of the current year. This table summarizes information provided on each sheet: Number Total Cost Incurred Status of Job 444 $15,050 Finished and delivered 445 $22,400 Finished and delivered 446 $ 7,500 Finished and unsold 447 $ 4,300 Finished and delivered 448 $33,000 Finished and unsold 449 $62,000 Finished and unsold 450 $14,600 Unfinished 451 $22,200 Finished and delivered 452 $ 3,600 Unfinished 453 $ 1,000 Unfinished (a) What is the cost of goods sold for the month of March? (b) What is the cost of the goods in process inventory on March 31? (c) What is the cost of the finished goods inventory on March 31?

Q: Briefly describe how manufacturing firms dispose of overapplied or underapplied factory overhead.

Q: Explain what a predetermined overhead allocation rate is, how it is calculated, and why it is used.

Q: Describe the use of the Factory Payroll account in a job order cost accounting system.

Q: Describe the flow of labor costs in a job order costing system, and identify the documents used in the system.

Q: Describe how materials flow through a job order cost accounting system, and identify the key documents in the system.