Question 1

Gonzalez,Inc.manufactures stereo speakers in two factories; one in Vandalia,Illinois and another in Modesto,California.The Vandalia factory uses direct labor cost (DL$)for its overhead rate and the Modesto factory uses machine-hours (MHs)for its overhead rate.Information related to both plants for last year is presented below:
  Required:
Fill in the lettered blanks above.SHOW YOUR CALCULATIONS.

Accepted Answer

The answer of Gonzalez,Inc.manufactures stereo speakers in two factories; one...

Question 2

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.

Accepted Answer

The answer of The Collins Corporation uses a job-order costing...

Question 3

Held Inc. has provided the following data for the month of June. 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 $1,000.
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 cost of goods sold for June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:
A) $301,410
B) $299,790
C) $299,600
D) $301,600

Accepted Answer

Allocating overapplied manufacturing overhead reduces the balances in the inventory and cost of goods sold accounts.
Cost of goods sold for June after allocation of overapplied manufacturing overhead = $300,600 - [($68,040/$84,000) × $1,000] = $300,600 - (81% × $1,000) = $299,790

Question 4

Sefcovic Enterprises LLC recorded the following transactions for the just completed month.The company had no beginning inventories.
(1)Raw materials purchased for cash,$110,000
(2)Direct materials requisitioned for use in production,$79,000
(3)Indirect materials requisitioned for use in production,$15,000
(4)Direct labor wages incurred and paid,$125,000
(5)Indirect labor wages incurred and paid,$22,000
(6)Additional manufacturing overhead costs incurred and paid,$134,000
(7)Manufacturing overhead costs applied to jobs,$125,000
(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.
Required:
a.Post the above transactions to the following T-accounts:
       b.Determine the adjusted cost of goods sold for the month.

Accepted Answer

The answer of Sefcovic Enterprises LLC recorded the following transactions...

Question 5

Fossil Manufacturing uses a predetermined overhead rate of $17.80 per direct labor-hour.This predetermined rate was based on 11,000 estimated direct-labor-hours and $195,800 of estimated total manufacturing overhead.The company incurred actual manufacturing overhead costs of $194,000 and 10,500 direct labor-hours.
Required:
a.Determine the amount of underapplied or overapplied manufacturing overhead for the period.
b.Assuming that the company closed manufacturing overhead to cost of goods sold,make the journal entry to close manufacturing overhead.
c.What is the effect of this entry on the company's gross margin?

Accepted Answer

The answer of Fossil Manufacturing uses a predetermined overhead rate...

Question 6

Held Inc. has provided the following data for the month of June. 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 $1,000.
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 June would include the following:
A) credit to Work in Process of $21,450
B) credit to Work in Process of $70
C) debit to Work in Process of $21,450
D) dedit to Work in Process of $70

Accepted Answer

Allocating overapplied manufacturing overhead reduces the balances in the inventory and cost of goods sold accounts, resulting in credits to those accounts.
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Question 7

Easterling Corporation uses a job-order costing system.The following data relate to the just completed month's operations.
  Required:
a.Where appropriate,post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.
   b.Determine the underapplied or overapplied overhead for the month.

Accepted Answer

The answer of Easterling Corporation uses a job-order costing system.The...

Question 8

The Simkins Corporation uses a job-order costing system.The following activities took place during the month of May:
  Required:
Prepare journal entries to record the information given above.Key your entries by the letters a through i.

Accepted Answer

The answer of The Simkins Corporation uses a job-order costing...

Question 9

Prahm Inc.has provided the following data for August:
   Required:
Prepare T-accounts for Raw Materials,Work in Process,Finished Goods,and Manufacturing Overhead,and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally,determine the ending balances.

Accepted Answer

The answer of Prahm Inc.has provided the following data for...

Question 10

Molin 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:
  Required:
a.What is the total amount of manufacturing overhead applied to production during the year?
b.Is manufacturing overhead overapplied or underapplied for the year? By how much?
c.What is the adjusted cost of goods sold for the year?

Accepted Answer

The answer of Molin Corporation is a manufacturer that uses...

Question 11

Blasi 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:
  Required:
a.What is the total manufacturing cost added to Work in Process during the year?
b.What is the cost of goods available for sale during the year?
c.What is the net operating income for the year?

Accepted Answer

The answer of Blasi Corporation is a manufacturer that uses...

Question 12

During June,Briganti Corporation purchased $79,000 of raw materials on credit to add to its raw materials inventory.A total of $64,000 of raw materials was requisitioned from the storeroom for use in production.These requisitioned raw materials included $4,000 of indirect materials.
Required:
Prepare journal entries to record the purchase of materials and their use in production.

Accepted Answer

The answer of During June,Briganti Corporation purchased $79,000 of raw...

Question 13

Wears Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year.
  The Cost of Goods Manufactured for the year was $537,000.
Required:
What was the Cost of Goods Sold for the year?

Accepted Answer

The answer of Wears Corporation uses a job-order costing system...

Question 14

Kahanaoi 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:
  Required:
a.What is the journal entry to record raw materials used in production?
b.What is the ending balance in Raw Materials?
c.What is the journal entry to record the direct and indirect labor costs incurred during the year?
d.What is the total amount of manufacturing overhead applied to production during the year?
e.What is the total manufacturing cost added to Work in Process during the year?
f.What is the journal entry to record the transfer of completed goods from Work in Process to Finished Goods?
g.What is the ending balance in Work in Process?
h.Is manufacturing overhead overapplied or underapplied for the year? By how much?
i.What is the cost of goods available for sale during the year?
j.What is the journal entry to record the unadjusted cost of goods sold?
k.What is the adjusted cost of goods sold for the year?
l.What is the gross margin for the year?
m.What is the net operating income for the year?

Accepted Answer

The answer of Kahanaoi Corporation is a manufacturer that uses...

Question 15

Falkenstein Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year.
   Required:
What was the cost of indirect materials requisitioned for use in production during the year?

Accepted Answer

The answer of Falkenstein Corporation uses a job-order costing system...

Question 16

During December,Moulding Corporation incurred $76,000 of actual Manufacturing Overhead costs.During the same period,the Manufacturing Overhead applied to Work in Process was $74,000.
Required:
Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

Accepted Answer

The answer of During December,Moulding Corporation incurred $76,000 of actual...

Question 17

Janeway Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year.
  Required:
What was the cost of raw materials requisitioned for use in production during the year?

Accepted Answer

The answer of Janeway Corporation uses a job-order costing system...

Question 18

Dotsero Technology,Inc.,has a job-order costing system.The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs.The predetermined overhead rate in Department A is based on machine-hours,and the rate in Department B is based on direct materials cost.At the beginning of the most recent year,the company's management made the following estimates for the year:
  Job 243 entered into production an April 1 and was completed on May 12.The company's cost records show the following information about the job:
  At the end of the year,the records of Dotsero showed the following actual cost and operating data for all jobs worked on during the year:
  Required:
a.Compute the predetermined overhead rates for Department A and Department B.
b.Compute the total overhead cost applied to Job 243.
c.Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.

Accepted Answer

The answer of Dotsero Technology,Inc.,has a job-order costing system.The company...

Question 19

Mcie Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year:
  Results of operations:
  Required:
a.What is the ending balance in Raw Materials?
b.What is the ending balance in Work in Process?

Accepted Answer

The answer of Mcie Corporation is a manufacturer that uses...

Question 20

Buckovitch Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year:
  Required:
a.What is the journal entry to record raw materials used in production?
b.What is the journal entry to record the direct and indirect labor costs incurred during the year?
c.What is the journal entry to record the transfer of completed goods from Work in Process to Finished Goods?
d.What is the journal entry to record the unadjusted cost of goods sold?

Accepted Answer

The answer of Buckovitch Corporation is a manufacturer that uses...

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

The Simkins Corporation uses a job-order costing system.The following activities took place during the month of May: Required: Prepare journal entries to record the information given above.Key your entries by the letters a through i.

Prahm Inc.has provided the following data for August: Required: Prepare T-accounts for Raw Materials,Work in Process,Finished Goods,and Manufacturing Overhead,and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally,determine the ending balances.

Wears Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. The Cost of Goods Manufactured for the year was $537,000. Required: What was the Cost of Goods Sold for the year?

Falkenstein Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Required: What was the cost of indirect materials requisitioned for use in production during the year?

Janeway Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Required: What was the cost of raw materials requisitioned for use in production during the year?

Mcie Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: Results of operations: Required: a.What is the ending balance in Raw Materials? b.What is the ending balance in Work in Process?