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Homework answers / question archive / 1) DistaBricks manufactures custom brick and applies job-order costing
1) DistaBricks manufactures custom brick and applies job-order costing. The following information relates to the fiscal year ending December 31, 2020.
Beginning balance in Raw Materials Inventory $ 13,600
Purchases of raw material 211,000
Ending balance in Raw Materials Inventory 15,100
Beginning balance in Work in Process 18,700
Ending balance in Work in Process 16,500
Direct labor cost 78,600
Manufacturing overhead applied 47,900
Actual manufacturing overhead 44,800
Beginning balance in Finished Goods 26,200
Ending balance in Finished Goods 24,500
Sales 421,000
Selling expenses 115,400
General and administrative expenses 75,900
How much is the cost of direct materials transferred into production?
B. $212,500
C. $209,500
D. $211,000
2. Tranham, Inc. uses a job-order costing system. It reported the following amounts for March:
Work in process, March 1 $38,000 Finished goods, March 1 $14,000
Work in process, March 31 35,000 Finished goods, March 31 17,500
Cost of goods manufactured 169,000 Raw materials, March 1 12,300
Direct labor used 64,000 Raw materials, March 31 12,000
Selling costs incurred 32,000 Direct materials used 63,000
How much of the above amounts will Tranham report on its balance sheet at the end of March?
3. Olive Productions utilizes job-order costing for textbook production. It allocates overhead at a rate of 130% of direct labor costs. The following is data regarding three jobs:
Work in Process
balance Costs added in February
On February 1 Direct Labor Direct Materials
Job #64 $600 $500 $200
Job #65 $700 $300 $300
Job #66 $500 $100 $250
How much are total manufacturing overhead costs applied for February?
A. $3,510
B. $900
C. $1,440
D. $1,170
4. Olive Productions utilizes job-order costing for textbook production. It allocates overhead at a rate of 130% of direct labor costs. The following is data regarding three jobs:
Work In Process
balance Costs added in February
On February 1 Direct Labor Direct Materials
Job #64 $600 $500 $200
Job #65 $700 $300 $300
Job #66 $500 $100 $250
Jobs #64 and #66 were completed and sold in February. How much is the balance in the Work in Process account at the end of February?
A. $990
B. $1,690
C. $1,650
D. $1,300
5. DynaMore applies overhead to each window cleaning job it provides to customers based on direct labor hours. Information concerning manufacturing overhead and labor for July follows:
Estimated direct labor 5,000 hours @ $14.20 = $71,000
Direct labor incurred 5,100 hours @ $14.50 = $73,950
Estimated manufacturing overhead $269,800
Actual manufacturing overhead $281,400
How much is the predetermined overhead rate?
6. RedEx Shipping determined the rate to apply overhead based on direct labor hours would be $5.40, and based on machine hours would be $4.20. Job 664 used $26.00 of direct materials, 2.5 machine hours, and 4 hours of direct labor at a cost of $14 per hour. How much is the manufacturing cost of job 664 if RedEx Shipping applies overhead based on machine hours?
A. $92.50
B. $10.50
C. $21.60
D. $103.60
7. During the month of August, Ranson Productions applied overhead to jobs using an overhead rate of $0.60 per dollar of direct labor. Actual direct labor in August was 12,000 hours at $15.00 per hour, for a total of $180,000. Estimated overhead in August was $111,600. Actual overhead was composed of the following items:
Indirect materials $ 16,400
Indirect labor 22,000
Utilities 24,500
Depreciation 38,700
Repair expense 13,500
Total $115,100
How much overhead was applied during the year by Ranson Productions?
8. Mudd Shoe Company has expected overhead costs of $864,000. The majority of the overhead costs are incurred providing production support to the direct labor force. Direct labor rates vary from $12 to $21 per hour, and more complex tasks are assigned to more skilled workers who have higher pay rates. Management projects direct labor costs to be $540,000 with 39,273 direct labor hours. More complex tasks require proportionally more support than do the less complex tasks.
Each model/size of shoe is produced in a separate production batch and constitutes a job. Mudd allocates overhead based on direct labor hours. During the year, the company produced 6,600 pairs of the size 8 Beachcomber shoes. A total of 4,200 direct labor hours, costing $54,600, were assigned to the job. How much overhead will be assigned to the size 8 Beachcomber shoes?
9. Mudd Shoe Company has expected overhead costs of $864,000. The majority of the overhead costs are incurred providing production support to the direct labor force. Direct labor rates vary from $12 to $21 per hour, and more complex tasks are assigned to more skilled workers who have higher pay rates. Management projects direct labor costs to be $540,000 with 39,273 direct labor hours. More complex tasks require proportionally more support than do the less complex tasks.
Each model/size of shoe is produced in a separate production batch and constitutes a job. Mudd allocates overhead based on direct labor cost. During the year, the company produced 6,600 pairs of the size 8 Beachcomber shoes. A total of 4,200 direct labor hours, costing $54,600, were assigned to the job. How much overhead will be assigned to the size 8 Beachcomber shoes?
10. Haskell Construction began the month of July with jobs 60 and 63 completed and waiting to be shipped to customers. At the end of June, jobs 61, 64, and 65 were in production. During July, jobs 66, 67, 68, 69 and 70 were begun. The company completed Jobs 61, 65, 66, 68, and 69 during July. Jobs 60, 61, 63, 66, and 68 were shipped to customers during July. Which jobs are in Work in Process on July 31?
A. 61, 65, 66, 68, and 69
B. 64, 67, and 70
C. 67 and 70
D. 65 and 69
11. During 2020, Anhover Wedding Planners applied overhead using a job-order costing system at a rate of $3.25 per direct labor hour. Estimated direct labor hours totaled 220,000 and estimated overhead was $715,000 for the year. Actual direct labor hours for 2020 totaled 215,000 and actual overhead was $702,000. What is the amount of under or overapplied overhead as of the end of 2020?
A. $13,000 overapplied
B. $13,000 underapplied
C. $16,250 underapplied
D. $3,250 underapplied
12. Osprey Production uses job-order costing for batches of customer printed t-shirts. For job R45, the company incurred the following costs:
Direct materials used $4,235
Direct labor $1,300
Applied overhead $450
Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job?
A. $10.80
B. $14.95
C. $10.50
D. $15.25
13. Brothers Construction uses a predetermined overhead rate of $6.00 per direct labor hour. Budgeted overhead was $720,000 and actual overhead incurred was $700,000. Actual direct labor hours worked were 125,000 hours. How many labor hours did Brothers plan to work during the year?
C. 20,833 hours
D. Cannot be determined from the information given
14. Ansley Products applies overhead using a predetermined overhead rate. Overhead is applied based on direct labor hours. At the beginning of the year, it is estimated that $500,000 in overhead will be incurred and 25,000 hours will be worked. At year-end, the company had used 24,000 hours of labor, and actual overhead costs were $470,000. What can be concluded from this?
A. Cost control was good.
B. Overhead is overapplied by $10,000.
C. Overhead is underapplied by $10,000.
D. Overhead is applied at a rate of $19.58 per hour
14. At the end of the period, the Manufacturing Overhead account had a $4,200 debit balance. The balances in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold were $10,000, $20,000, and $70,000, respectively. Assuming that the balance in Manufacturing Overhead is considered material, which of the following is part of the journal entry to close the Manufacturing Overhead account at the end of the period?
