Chapter 17: Q 15E_c (page 941)
Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
c. A company that manufactures thousands of identical files.
Answer:
Process costing system is used by the company that manufacture thousands of similar files.
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Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
c. A manufacturer of luxury yachts
The T-account showing the manufacturing overhead activity for Aliyah Corp. for 2018 is as follows:
Manufacturing overhead
| 195000 | 203,000 |
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.
Question: How is manufacturing overhead allocated to jobs?
Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
h. Sold inventory on account, \(22,000; cost of goods sold, \)18,000.
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