job order costing

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Estimated total fixed manufacturing overhead $ 14,400 Estimated variable manufacturing overhead per direct labor-hour $ 1.50 Estimated total direct labor-hours to be worked 3,600 Total actual manufacturing overhead costs incurred $ 19,500

Job P Job Q Direct materials $ 15,000 $ 9,600 Direct labor cost $ 40,500 $ 12,000 Actual direct labor-hours worked 2,700 800

rev: 08_16_2014_QC_52351 1.value: 0.50 pointsRequired information Required: 1. What is the company’s predetermined overhead rate? (Round your answers to 2 decimal places.)

Garrison 15e Recheck 2014-12-16 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

2.value: 0.50 pointsRequired information 2. How much manufacturing overhead was applied to Job P and Job Q? (Round your intermediate calculations to 2 decimal places.)

Garrison 15e Recheck 2014-12-16 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

3.value: 0.50 pointsRequired information 3. What is the direct labor hourly wage rate?

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

4.value: 0.50 pointsRequired information 4-a. If Job P includes 35 units, what is its unit product cost?

4-b. What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

5.value: 0.50 pointsRequired information 5. Assume the ending raw materials inventory is $2,600 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

Garrison 15e Recheck 2014-12-16 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

6.value: 0.50 pointsRequired information 6. Assume that the company does not use any indirect labor. Prepare the journal entry to record the direct labor costs added to production. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

7.value: 0.50 pointsRequired information 7. Prepare the journal entry to apply manufacturing overhead costs to production. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

8.value: 0.50 pointsRequired information 8. Assume the ending raw materials inventory is $2,600 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured.

rev: 08_16_2014_QC_52351 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

9.value: 0.50 pointsRequired information 9. Prepare the journal entry to transfer costs from Work in Process to Finished Goods. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

10.value: 0.50 pointsRequired information 10. Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

11.value: 0.50 pointsRequired information 11. Prepare a schedule of cost of goods sold.

Garrison 15e Recheck 2014-12-16 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

12.value: 0.50 pointsRequired information 12. Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

13.value: 0.50 pointsRequired information 13. What is the amount of underapplied or overapplied overhead?

Garrison 15e Recheck 2014-12-16 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

14.value: 0.50 pointsRequired information 14. Prepare the journal entry to close the amount of underapplied or overapplied overhead to Cost of Goods Sold. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

15.value: 0.50 pointsRequired information 15. Assume that Job P includes 35 units that each sell for $2,600 and that the company’s selling and administrative expenses in March were $13,000. Prepare an absorption costing income statement for March.

rev: 03_14_2014_QC_46864 ReferenceseBook & Resources WorksheetLearning Objective: 03-02 Apply overhead cost to jobs using a predetermined overhead rate.Learning Objective: 03-05 Use T-accounts to show the flow of costs in a job-order costing system. Difficulty: 2 MediumLearning Objective: 03-03 Compute the total cost and average cost per unit of a job.Learning Objective: 03-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 03-01 Compute a predetermined overhead rate.Learning Objective: 03-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.Learning Objective: 03-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Ask your instructor a questionCheck my work

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