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Exam 3: Job-Order Costing

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Question 21

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Rauth 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's cost of goods manufactured for August was $146, 000;its beginning finished goods inventory was $57, 000;its ending finished goods inventory was $39, 000;its manufacturing overhead was underapplied by $2, 000. Required: Determine the cost of goods sold that would appear on the income statement for August;in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.Show your work!

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Question 22

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Pirkl Corporation has provided the following data for the month of March: Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.

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The cost of goods manufactured equals ending work in process inventory, plus the total manufacturing cost charged to jobs, less beginning work in process inventory.

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 cost of goods sold that appears on the income statement for June and that has been adjusted for any underapplied or overapplied overhead is closest to:

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts.During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs: Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost.During October, Kapanga completed Jobs B18 and B19 and sold Job B19. What is Kapanga's cost of goods manufactured for October?

If a company closes any underapplied or overapplied overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be increased if manufacturing overhead is overapplied for the period.

Hassenger has a job-order costing system.The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor cost.The information below has been taken from the cost records of the company for the past year: Required: a.Compute the predetermined overhead rate that was used during the year. b.Compute the Cost of Goods Manufactured for the year. c.Compute the unadjusted Cost of Goods Sold for the year.(Do not close any underapplied or overapplied manufacturing overhead to Cost of Goods Sold. )

When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job.

The use of a predetermined overhead rate in a job-order cost system makes it possible to compute the total cost of a job before production is begun.

Tramell 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 cost of goods sold that appears on the income statement for June and that has been adjusted for any underapplied or overapplied overhead is closest to:

Messana Corporation reported the following data for the month of August: The cost of goods manufactured for August is:

The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job.

In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period:

The salary of the company's president should be charged to the Manufacturing Overhead Incurred account.

Overapplied manufacturing overhead means that:

Toan 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 September the company completed job S80M that consisted of 23, 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 S80M shows the following costs: During the month, the actual manufacturing overhead cost incurred was $270, 020 and 3, 000 completed units from job S80M were sold.No other products were sold during the month. The unit product cost for job S80M is closest to:

Dreckman 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 August the company completed job M27K that consisted of 17, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost for job M27K according to its job cost sheet was $1, 118, 600.During the month, the actual manufacturing overhead cost incurred was $265, 880 and the manufacturing overhead applied was $272, 000.And during the month, 1, 000 completed units from job M27K were sold.No other products were sold during the month. The cost of goods sold that would appear on the income statement for August, after adjustment for any underapplied or overapplied overhead, is closest to:

Broberg Inc.uses a job-order costing system in which any underapplied or overapplied overhead for the period is closed out to cost of goods sold.In August the company completed job A39E that consisted of 14, 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 A39E shows the following costs: During the month, the actual manufacturing overhead cost incurred was $182, 140 and 3, 000 completed units from job A39E were sold.No other products were sold. Required: Determine the cost of goods sold that would appear on the income statement for August.Show your work!

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.

When closing overapplied manufacturing overhead to cost of goods sold, which of the following would be true?