Chapter 27 – Job Order Cost Accounting
75. Morion Hat Manufacturing made the following charge purchases on February 4 of the
current year. Felt $5,687; Ribbon $1,234; Straw $6,723; Dye (for the straw) $39; Thread $47;
Various plastic fruits, flowers, etc. $179; and Glue $28. Assume that all items purchased were
requisitioned for production during the year. Complete one journal entry for all purchases and
one summary journal entry dated February 20 for the requisitioning of those materials into
production.
Also, explain the internal controls applied to safeguard raw materials.
Note: Only the dye, glue, and thread are considered overhead. Some students may put the
various plastic fruits, flower, etc. into indirect materials. If so the direct material would be
$13,644 and the total for indirect materials would be $293.
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78. The Manufacturing Overhead Applied account for Cullverin Manufacturing had activity
of $860 in indirect materials and supplies, $992 in indirect labor, and $4,654 in other
overhead costs recorded in the account at April 30 of the current year. The Manufacturing
Overhead Applied account had a total of $6,740 in overhead applied during April. What is the
over-or underapplied overhead for April? Prepare the journal entry to close the related
overhead accounts.
The overapplied overhead for April is $234.
Davit Boat Building has three jobs in process in November of the current year, A1-13, R18-4,
and B2-19. All three were begun on November 1st. Job A1-13 was completed on November
21st with total labor costs of $8,750 and total material costs of $7,725. No other jobs were
completed in November. The total balance in Job R18-4 is $3,275 ($675 in materials and
$2,600 in labor) and in Job B2-19 is $6,782 ($1,240 in materials and $5,542 in labor) before
overhead is applied. Overhead is applied based on total direct labor dollars. Estimated total
direct labor dollars for the year is $245,000 and total estimated manufacturing overhead is
$367,500.
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80. Based on the information given, complete the Job Order Cost Sheet for Job A1-13.
27–38
Adams Manufacturing has three jobs in process in October of the current year, B2-19, C3-19,
and D4-4. All three were begun during the first week of October. Job C3-19 was completed
on October 10th with total labor costs of $14,750 and total material costs of $8,855. No other
jobs were completed in October. The total balance in Job D4-4 is $8,250 ($4,275 in materials
and $3,975 in labor) and in Job B2-19 is $17,850 ($10,425 in materials and $7,425 in labor)
before overhead is applied. Overhead is applied based on total direct labor dollars. Estimated
total direct labor dollars for the year is $440,000 and total estimated manufacturing overhead
is $352,000.
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82. Based on the information given, complete the Job Order Cost Sheet for Job C3-19.
27–42
83. Match the following definitions with the correct term from the list provided.
1. A measure of what costs should be in an efficient
operation
7
2. Form used to record hours worked and jobs
performed
11
3. A record showing details of receipts and issues for
a type of raw material
15
4. A form that describes the item and quantity needed
and shows the job or purpose
6
5. A cost accounting system that determines the unit
cost of manufactured items for each separate
production order
12
6. A ledger containing the job order cost sheets
3
7. A ledger containing a record for each of the
different types of finished products
2
8. The rate at which the estimated cost of overhead is
charged to each job
14
9. A cost accounting system whereby unit costs of
manufactured items are determined by totaling unit
costs in each production department
17
10. The result of applied overhead exceeding the
actual overhead costs
4
11. A subsidiary ledger that contains a record for
each overhead item
5
12. A record of all manufacturing costs charged to a
specific job
20
13. A record of all manufacturing costs charged to a
specific job
10
14. A specific order for a specific batch of
manufactured items
8
15. A ledger containing the raw materials ledger
cards
18
16. Production order
9
17. Using material, labor, and services on the factory
floor
16
18. An inventory system that tracks the inventories
on hand at all times
1
19. The result of actual overhead costs exceeding
applied overhead
19