Chapter 5 Test - Cost Accounting - Emily.doc

Chapter 5 Test - Cost Accounting - Emily.doc - Chapter 5Job...

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Chapter 5—Job Order Costing 1. Prepare the necessary journal entries from the following information for Parrish Company, which uses a perpetual inventory system. a. Purchased raw material on account, $61,200. b. Requisitioned raw material for production as follows: direct material-75 percent of purchases; indirect material-20 percent of purchases. c. Direct labor wages of $35,500 are accrued as are indirect labor wages of $14,100. d. Overhead incurred and paid for is $68,100. e. Overhead is applied to production based on 125 percent of direct labor cost. f. Goods costing $99,500 were completed during the period. g. Goods costing $53,400 were sold on account for $81,200. See Spreadsheet 2. Dillman Company manufactures custom-built conveyor systems for factory and commercial operations. The cost accountant for Dillman Company is in the process of educating a new employee, Jerry Cole about the job-order costing system that Dillman Company uses. (The system is based on normal costs; overhead is applied based on direct labor cost and rounded to the next whole dollar.) The following job-order cost records are available for July: Direct Direct Total Job No. Materials Labor Applied OH Cost 667 $ 5,901 $1,730 $ 1,990 $ 9,621 669 18,312 1,810 2,082 22,204 670 406 500 575 1,481 671 51,405 9,500 10,925 71,830 672 9,615 550 633 10,798 To explain the missing job number, the cost accountant informed Jerry that Job #668 had been completed in June. The accountant also told Jerry that Job #667 was the only job in process at the
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  • Fall '15
  • Bonomo
  • Cost Accounting, Cost Accountant, Direct manufacturing Labor, c. Direct manufacturing, Jerry Cole, Dillman Company

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