bambersm_ch03

bambersm_ch03 - Chapter 3 Job Costing Chapter Review Quiz...

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Unformatted text preview: Chapter 3 Job Costing Chapter Review Quiz Answers: 1. b 3. c 5. a 7. c 9. d 2. d 4. d 6. a 8. b 10. a Explanations: 5. a. Predetermined manufacturing = $90 million overhead rate 10 million machine hours = $9 / machine hour 6. a.Actual manufacturing overhead = Indirect labor ($10) + Depreciation on plant ($47) + Machinery repair ($15) + Plant supplies ($5) + Plant utilities ($8) = $85 7. c. Allocated manufacturing = 12 million machine hours overhead $9 / machine hour = $108 million Chapter 3 Job Costing 115 Short Exercises (5 min.) S 3-1 a. A manufacturer of plywood would use process costing . b. A manufacturer of wakeboards would use process costing . c. A manufacturer of luxury yachts would use job costing . d. A professional services firm would use job costing . e. A landscape garden contractor would use job costing . Managerial Accounting Class-Test Edition 116 (5-10 min.) S 3-2 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Raw Materials Inventory 71,100 Accounts Payable 71,100 To record purchase of materials. Work in Process Inventory 63,000 Manufacturing Overhead 280 Raw Materials Inventory 63,280 To record use of materials. Raw Materials Inventory Bal. 35,680 63,280 Used Purchased 71,100 Bal. 43,500 Chapter 3 Job Costing 117 (10 min.) S 3-3 Raw Materials Inventory Work in Process Inventory Bal. 16 Bal. 32 Purchases 230 Used 222 Direct materials 200 Bal. 24 Direct labor 320 Cost of goods Manufacturing manufactured 744 overhead 200 Bal. 8 Materials requisitioned (used) $222 Direct materials (200 ) Indirect materials $ 22 (5 min.) S 3-4 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Manufacturing Wages 77,500 Wages Payable 77,500 To record incurrence of manufacturing wages ($600 + $900 + $76,000). Work in Process Inventory 76,000 Manufacturing Overhead 1,500 Manufacturing Wages 77,500 To assign manufacturing wages. Managerial Accounting Class-Test Edition 118 (5 min.) S 3-5 Manufacturing Overhead Nails and glue 12,000 Wood preserving stain 9,000 Depreciation on saws 5,000 Indirect manufacturing labor 39,000 Bal. 65,000 (The following explanation is not required.) Wood is a direct material. Depreciation on delivery truck is a distribution expense. Assembly-line workers wages are direct labor. Salesmans auto lease is a marketing expense. (5 min.) S 3-6 Manufacturing overhead cost allocated (0.70 $400). $ 280 Total cost of Job 293: Direct materials... $ 500 Direct labor... 400 Manufacturing overhead.. 280 Total cost of Job 293.. $1,180 Chapter 3 Job Costing 119 (10 min.) S 3-7 Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Purchases Used (1) direct (2) (8) materials (7) Cost of direct (4) Cost of goods goods sold labor manufactured manufacturing overhead (6) allocated Manufacturing...
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This note was uploaded on 04/08/2008 for the course ACCT 1302 taught by Professor Venkateswar during the Spring '08 term at Trinity U.

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bambersm_ch03 - Chapter 3 Job Costing Chapter Review Quiz...

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