Question : 41) The ending balance in Work-in-Process Control represents the total : 1217179

 

41) The ending balance in Work-in-Process Control represents the total costs of all jobs that have NOT yet been completed.

 

42) The product cost reported as inventoriable costs to shareholders may differ from product costs reported for government contracting.

 

43) For external reporting purposes, it is acceptable to allocate marketing costs to individual jobs.

44) Jordan Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available:

 

Budgeted AmountsDepartment XDepartment Y

Direct labor cost              $180,000              $165,000

Factory overhead              $225,000              $180,000

Machine-hours              51,000              mh              40,000mh

 

Actual data for Job #10Department XDepartment Y

Direct materials requisitioned              $10,000              $16,000

Direct labor cost              $11,000              $14,000

Machine-hours              5,000              mh3,000              mh

 

Required:

a.Compute the budgeted factory overhead rate for Department X.

b.Compute the budgeted factory overhead rate for Department Y.

c.What is the total overhead cost of Job 10?

d.If Job 10 consists of 50 units of product, what is the unit cost of this job?

45) Job-cost records for Boucher Company contained the following data:

Total Cost

DateDateDateof Job

Job No.StartedFinishedSoldat June 30

220May 18June 12June 20              $6,000

221May 20June 19June 21              4,000

222June 7July 5July 12              7,000

223June 10June 28July 1              6,500

224June 19July 16July 25              8,000

 

Required:

a.Compute WIP inventory at June 30.

b.Compute finished goods inventory at June 30.

c.Compute cost of goods sold for June.

46) Constanza Company has the following balances as of the year ended December 31, 2010

 

Direct Materials Inventory              $30,000              Dr.

WIP Inventory              69,000              Dr.

Finished Goods Inventory              99,000              Dr.

Underapplied Factory Department Overhead              8,000Dr.

Cost of Goods Sold              149,000              Dr.

 

Additional information is as follows:

 

Cost of direct materials purchased during 2010              $82,000

Cost of direct materials requisitioned in 2010              74,000

Cost of goods completed during 2010              204,000

Factory overhead applied (120% of direct labor)              96,000

 

Required:

a.Compute beginning direct materials inventory.

b.Compute beginning WIP inventory.

c.Compute beginning finished goods inventory.

d.Compute actual factory overhead incurred.

 

47) Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other costs related to Adams were:

 

PRE-OPORIn-room

CostsCostsCosts

Patient medicine              $ 200              $ 500              $2,400

Direct nursing time              $1,000              $2,000              $3,000

 

The hospital uses a budgeted overhead rate for applying overhead to patient stays.

 

Required:

What is the total cost of the stay of patient Fred Adams?

 

48) The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

 

Department 100Department 200

Direct materials purchased on account              $110,000              $177,500

Direct materials used              32,500              13,500

Direct manufacturing labor              52,500              53,500

Indirect manufacturing labor              11,000              9,000

Indirect materials used              7,500              4,750

Lease on equipment              16,250              3,750

Utilities              1,000              1,250

 

Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

 

Required:

a.Determine the budgeted manufacturing overhead rate for each department.

b.Prepare the necessary journal entries to summarize the March transactions for Department 100.

c.What is the total cost of Job A?