Question 1

During the year,a company incurred $494,000 of manufacturing overhead costs and allocated $508,000 of manufacturing overhead costs.At the year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

Accepted Answer

The answer of During the year,a company incurred $494,000 of...

Question 2

Hosanna Furnishings finished Job A40,which involved $4,000 of direct materials and $600 of direct labor.Hosanna uses a predetermined overhead allocation rate based on 40% of direct labor costs.Provide the journal entry needed to record the completion of the job.Omit explanation.

Accepted Answer

The answer of Hosanna Furnishings finished Job A40,which involved $4,000...

Question 3

Jupiter Manufacturing began business on January 1.During its first year of operation,Jupiter worked on five industrial jobs and reported the following information at year-end:

What was the balance in Work-in-Process Inventory at year-end?

Accepted Answer

A)Job 5 is the only job on which work is in process at the end of the year.
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Question 4

Patrick Manufacturing Systems uses job order costing and a perpetual inventory system.When recording the sale of a job,which account(s)is(are)credited?

Accepted Answer

The answer of Patrick Manufacturing Systems uses job order costing...

Question 5

On June 30,Coral,Inc.finished Job 750 with total job costs of $4000,and transferred the costs to Finished Goods Inventory.On July 6,Coral sold goods to a customer for $5200 cash.Which of the following is the correct journal entry to record the cost of goods sold? Assume the perpetual inventory system is used.

Accepted Answer

D)Journal entry:
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Question 6

Manufacturing overhead costs allocated to a job amounted to $492,000.The actual manufacturing costs incurred during the year were $540,000.Overhead costs have been underallocated.

Accepted Answer

The allocated manufacturing overhead costs were less than the actual manufacturing costs incurred, indicating that overhead costs have been underallocated.

Question 7

Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to Work-in-Process Inventory is less than the amount actually incurred.

Accepted Answer

Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to Work-in-Process Inventory is more than the amount actually incurred.

Question 8

Leonard Manufacturing Systems uses job order costing and a perpetual inventory system.When recording the sale of a job,which account(s)is(are)debited?

Accepted Answer

The answer of Leonard Manufacturing Systems uses job order costing...

Question 9

Warren Manufacturing began business on January 1.During its first year of operation,Warren worked on five industrial jobs and reported the following information at year-end:

What was the balance in Finished Goods Inventory at year-end?

Accepted Answer

C)Job 3 and Job 4 are the jobs that are completed and not sold at year end.
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Question 10

At the beginning of the year,Barrington Manufacturing had the following account balances:

The following additional details are provided for the year:
  
Record these transactions in the T-accounts and calculate the ending balances for Work-in-Process Inventory,Finished Goods Inventory,and Manufacturing Overhead accounts (unadjusted).

Accepted Answer

The answer of At the beginning of the year,Barrington Manufacturing...

Question 11

On June 30,Cleopatra,Inc.finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Cleopatra completed the sale of the goods to a customer for $55,000 on account.Provide the journal entry to record the sales revenue.Omit explanation.

Accepted Answer

The answer of On June 30,Cleopatra,Inc.finished Job 70 with total...

Question 12

During the year,a company incurred $522,000 of manufacturing overhead costs and allocated $483,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

Accepted Answer

Since the allocated amount ($483,000) is less than the actual amount incurred ($522,000), there is an overapplied manufacturing overhead balance. To adjust this balance to zero at year-end, a debit entry is made to Cost of Goods Sold.

Question 13

In a job order costing system,a credit to Finished Goods Inventory will be accompanied by a debit to ________.

Accepted Answer

The answer of In a job order costing system,a credit...

Question 14

Using a job order costing system,Jabari Company sold jobs on account with a selling price of $985,000 and a cost of $410,000.Assume the company uses the perpetual inventory system.The journal entries required to record this transaction are:

Accepted Answer

The journal entries required would be to debit Accounts Receivable for $985,000 and credit Sales Revenue for the same amount, and to debit Cost of Goods Sold for $410,000 and credit Inventory for the same amount. Option C correctly reflects these entries.

Question 15

Oxford Manufacturing Company completed jobs that cost $48,000 to produce.In the same period,
the company sold jobs for $102,000 that cost $53,000 to produce.Prepare the journal entries for the completion and sales of the jobs.All sales are on account.Omit explanation.Assume the perpetual inventory system is used.

Accepted Answer

The answer of Oxford Manufacturing Company completed jobs that cost...

Question 16

Kalliste,Inc.completed Job C50.Job C50 required $3,000 of direct materials cost,$2,000 of direct labor cost,and $600 of allocated manufacturing overhead.Provide the journal entry needed to record completion and transfer of the job.Omit explanation.

Accepted Answer

The answer of Kalliste,Inc.completed Job C50.Job C50 required $3,000 of...

Question 17

When goods are transferred from the Finished Goods Inventory account to the Cost of Goods Sold account,the product costs move from the balance sheet to the income statement.

Accepted Answer

This statement is true. When goods are transferred from the Finished Goods Inventory account to the Cost of Goods Sold account, it means that the products have been sold and their costs are recognized as expenses on the income statement. This causes a decrease in the Finished Goods Inventory account on the balance sheet and an increase in the Cost of Goods Sold account, which is reported as an expense on the income statement.

Question 18

On January 1,Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $83,200 and a beginning balance in Finished Goods Inventory of $21,100.During the year,Feldstein incurred manufacturing costs of $350,300.
During the year,the following transactions occurred:
Job A-12 was completed for a total cost of $120,200 and was sold for $125,300.
Job A-13 was completed for a total cost of $200,300 and was sold for $211,500.
Job A-15 was completed for a total cost $68,000 but was not sold as of year-end.
What was the balance in Finished Goods Inventory at the end of the year?

Accepted Answer

C)
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Question 19

On June 30,Greenville Manufacturing finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Greenville completed the sale of the goods to a customer for $55,000 on account.Provide the entry to record the cost of goods sold.Omit explanation.Assume the perpetual inventory system is used.

Accepted Answer

The answer of On June 30,Greenville Manufacturing finished Job 70...

Question 20

On June 30,Caroline,Inc.finished Job 750 with total job costs of $4800 and transferred the costs to Finished Goods Inventory.On July 6,Caroline sold goods from Job 750 to a customer for $5100 cash.Which of the following is the correct entry needed to record the revenue earned? Assume the perpetual inventory system is used.

Accepted Answer

B)Journal entry:
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Quiz 17: Job Order Costing