Chapter 17: 17-1SE-f (page 938)
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
f. A custom home builder
A custom home builder is most likely to use a job-order costing system.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
June production generated the following activity in Bentley Chassis Company’s Work-in-Process Inventory account:
June 1 balance | \(36,000 |
Direct materials used | 32,000 |
Direct labor assigned to jobs | 40,000 |
Manufacturing overhead allocated to jobs | 28,000 |
Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of
\)37,000 and $48,000, respectively.
Requirements
4. What is the gross profit on Job 143?
Comparing actual to allocated overhead
Columbus Enterprises reports the following information at December 31, 2018:
Manufacturing overhead
3,500 | 50,600 |
19,000 | |
34,500 |
Requirements
3. Is manufacturing overhead underallocated or overallocated? By how much?
Selected cost data for Classic Print Co. are as follows:
Estimated manufacturing overhead cost for the year | $125,000 |
Estimated direct labor cost for the year | 78,125 |
Actual manufacturing overhead cost for the year | 116,000 |
Actual direct labor cost for the year | 67,000 |
Requirements
1. Compute the predetermined overhead allocation rate per direct labor dollar.
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
i. A manufacturer of multivitamins
Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
h. A company that bottles milk into one-gallon containers.
What do you think about this solution?
We value your feedback to improve our textbook solutions.
