Chapter 17: Q17-4RQ (page 937)
Question: What is the purpose of a job cost record?
Answer:
A job cost record is a document that shows the direct materials, direct labor, and manufacturing overhead costs for an individual job and allows the company to track the cost of individual jobs.
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The T-account showing the manufacturing overhead activity for Aliyah Corp. for 2018 is as follows
Manufacturing overhead
| 195,000 | 203,000 |
Requirements
1. What is the actual manufacturing overhead?
Question: Using job order costing in a service company
Assume that Roth’s accountants are expected to work a total of 8,000 direct labor hours in 2018. Roth’s estimated total indirect costs are $96,000 and the allocation base used is direct labor hours.
Requirements
2. What indirect costs will be allocated to Client 507 if Jack Smith, an accountant at Roth Accounting, works 15 hours to prepare the financial statements?
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
2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory
account on June 30.
Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
i. Adjusted for overallocated or underallocated overhead.
Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
e. A computer repair service that makes service calls to homes.
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