A manager maintains ________ in a storeroom in or near the factory until the materials transfer to production.
raw materials inventory
Scotts Corporation allocates overhead using an approach based upon machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours included 18,500. Actual factory overhead was $287,920, and 19,050 actual machine-hours.
How much manufacturing
$274,320
In planning for the upcoming year, managers of Sesame Industries estimated $532,000 in manufacturing overhead, 25,000 direct labor hours, and 100,000 machine hours (MHR).
If the manager allocates overhead based on machine hours, what is the predetermined
$5.32/MHR
Which of the following is a characteristic of the process costing method?
Companies typically produce a large quantity of identical units.
Athens Machining had one job in Work in Process Inventory at the beginning of the month, Job 1376. The costs incurred to date on the job included $12.50 per direct labor hour. The total direct labor hours was 150 direct labor hours.
How much manufacturing
$1,875
A manager might implement a job order costing system at which of the following businesses?
Custom-home builder
Artsy Sportswear manufactures a specialty line of silk-screened T-shirts. The company uses a job-order costing system. During May, the manager incurred the following costs on Job PS4: direct materials $27,400 and direct labor $9,600. In addition, the mana
$8.20
Managers use which of the following calculations to find the predetermined manufacturing overhead (MOH)?
Total estimated manufacturing overhead costs / Total estimated amount of the allocation base
Which industry is least likely to use the process costing method?
Construction
Altoid Company sold most of its inventory produced during the period. The manager needs to close the $1,200 balance of Manufacturing Overhead. The company uses a predetermined manufacturing overhead rate to allocate manufacturing overhead to individual jo
Make an adjusting entry to debit Cost of Goods Sold for $1,200 and credit Manufacturing Overhead for $1,200.
Overallocated manufacturing overhead means the _______.
allocated manufacturing overhead cost was greater than the actual manufacturing overhead cost
Harp Music Corporation manufactures violins, violas, cellos, and fiddles and uses a job-order costing system.
What type of account should Harp credit when goods are sold?
Finished Goods Inventory
Johnson Construction Company uses cost-plus pricing to determine costs and place bids on local jobs. The manager needs to compute the cost-plus price to place a bid on a community swimming pool, deck, and spa. The estimated cost associated with the new pr
$315,000
To record the purchase of raw materials in a job cost record, it would be incorrect to ________.
debit Finished Goods Inventory
Underallocation of overhead occurs when ________.
the manufacturing overhead account has a debit balance at the end of the period
McGee Industries uses direct labor cost as the manufacturing overhead (MOH) allocation base, instead of direct labor hours. The manufacturing overhead totals $4,470 and the total direct labor costs are $20,000.
Which of the following choices best represen
22.35% DL cost
Overallocation of overhead occurs when ________.
the manufacturing overhead account has a credit balance at the end of the period
The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct mat
$21,700
Levitts Corporation allocates overhead using an approach based upon direct labor-hours. Budgeted factory overhead was $150,000, budgeted direct labor-hours were 30,000. Actual factory overhead was $164,500, and actual direct labor-hours were 32,500.
What
$162,500
Baker Corporation applies manufacturing overhead on an annual basis. The actual manufacturing overhead costs incurred were $210,600 and the manufacturing overhead allocated to jobs was $209,000.
Calculate the manufacturing overhead and indicate whether th
$1,600 underallocated
Which of the following represents a TRUE statement about the flow of inventory through a manufacturing system?
Raw materials (RM) inventory includes material maintained in storerooms at or near the factory until the manager moves those materials to production.
Chelsea, Inc. uses the job costing method and designates the direct labor hours as the allocation base. In 2016, the total estimated and actual overhead costs for Job 3489 were $250,000 and $275,000, respectively. The total estimated and actual direct lab
$10.00
Cross dishware manufactures a custom line of pottery. The company uses a job-order costing system. During June, the following costs were incurred on Job CD4340: direct materials $3,500 and direct labor $6,400. In addition, there was $2,500 of selling and
$13.10
Which of the following represent the manufacturing cost information on a job cost record?
Direct materials, direct labor, and manufacturer overhead
The total estimated manufacturing overhead costs / total estimated amount of the allocation base provides managers information to compute which of the following?
Predetermined MOH rate
Underallocated manufacturing overhead means the ________.
allocated manufacturing overhead cost was less than the actual manufacturing overhead cost
The manufacturing cost information on a job cost record includes each of the following EXCEPT ________.
job number and start time
Brockton Corporation, which allocates manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
Actual manufacturing overhead costs incurred
$35,000
Manufacturing overhead allocated to jo
$1,200 underallocated
Which of the following entries represents the correct entry to assign indirect labor to a job?
Debit Manufacturing Overhead and credit Wages Payable
One of the primary differences between job costing for service and manufacturing companies is that service firms generally ________.
use fewer direct materials
Tucker Company uses the job costing method. For 2016, the total estimated manufacturing cost was $250,000. The total actual manufacturing overhead was $275,000 and the total allocated overhead was $280,000.
The correct adjustment to COGS to dispose of the
credit COGS $5,000
Echo Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year, the company's Finished Goods Inventory account was debited for $360,000 and credited for $338,800. The ending balance in th
$153,400
Which industry is most likely to use the job costing method?
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