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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Justice Company’s Manufacturing Overhead account is given below. Use this informationto prepare the journal entry to adjust for overallocated or underallocatedoverhead.
Manufacturing overhead
| 148000 | 147000 |
Root Trailers’ job cost records yielded the following information:
Use the dates in the table to identify the status of each job. Compute the following
balances for Root:
a. Work-in-Process Inventory at July 31
The manufacturing records for Sporty Kayaks at the end of the 2018 fiscal year show the following information about manufacturing overhead:
Overhead allocated to production | \(409,200 |
Actual manufacturing overhead cost | 432,000 |
Predetermined overhead allocation rate | \)44 per machine hours |
Requirements
1. How many machine hours did Sporty Kayaks use in 2018?
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
d. A professional service firm
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.
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