Chapter 4
111. Megan Company uses job-order costing. At the end of the month, the following data was gathered:
Job # Total Cost Complete? Sold?
803 $500 yes yes
804 200 yes no
805 900 no no
806 600 yes yes
807 400 yes no
808 330 no no
809 600 yes yes
810 680 yes no
811 225 no no
812 440 no no
Megan’s selling price is cost plus 40% for each of its products.
What is Cost of Goods Sold for the month?
a. $1,700
b. $1,200
c. $1,300
d. $1,430
e. $2,220
Chapter 4
112. Hill Company uses job-order costing. At the end of the month, the following data was gathered:
Job # Total Cost Complete? Sold?
803 $611 yes yes
804 423 yes no
805 805 no no
806 682 yes yes
807 525 yes no
808 250 no no
809 440 yes yes
810 773 yes no
811 267 no no
812 341 no no
Hill’s selling price is cost plus 50% for each of its products.
What is the selling price of Job 806?
a. $682
b. $1,320
c. $1,440
d. $920
e. $1,023
Chapter 4
113. Diamond Design Company makes custom chairs for individual customers. On September 1, there was one job in
process, Job 243, with a cost of $2,000. Jobs 244, 245, and 246 were started during the month of September. Data on costs
added during the month are as follows:
Job 243 Job 244 Job 245 Job 246
Direct Materials $9,000 $2,280 $6,700 $8,000
Direct Labor 2,240 1,000 2,300 2,530
Overhead is applied to production at the rate of 60% of direct labor cost. Job 245 was completed on September 14 and the
client was billed at cost plus 40%. All other jobs remained in process.
Calculate the balance in Work-in-Process on September 30.
a. $17,717
b. $22,875
c. $30,512
d. $32,820
e. $15,820
Chapter 4
114. Brillant Design Company makes custom chairs for individual customers. On October 1, there was one job in process,
Job 243, with a cost of $1,300. Jobs 244, 245, and 246 were started during the month of October. Data on costs added
during the month are as follows:
Job 243 Job 244 Job 245 Job 246
Direct Materials $8,400 $2,300 $5,550 $9,200
Direct Labor 3,100 980 2,200 5,010
Overhead is applied to production at the rate of 70% of direct labor cost. Job 245 was completed on October 14 and the
client was billed at cost plus 55%. All other jobs remained in process.
What is the price of Job 245?
a. $20,204.20
b. $10,627.70
c. $22,310.50
d. $18,761.20
e. $14,399.50
115. Diamond Design Company makes custom chairs for individual customers. On September 1, there was one job in
process, Job 243, with a cost of $2,000. Jobs 244, 245, and 246 were started during the month of September. Data on costs
added during the month are as follows:
Job 243 Job 244 Job 245 Job 246
Chapter 4
Direct Materials $9,000 $2,280 $6,700 $8,000
Direct Labor 2,240 1,000 2,300 2,530
Overhead is applied to production at the rate of 60% of direct labor cost. Job 245 was completed on September 14 and the
client was billed at cost plus 40%. All other jobs remained in process.
If selling and administrative expenses for the month of September equaled $ 1,000, what is operating income for the
month of September?
a. $14,00
b. $3,152
c. $5,345
d. $2,000
116. Stutz, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers’
specifications. Stutz uses job-order costing to keep track of its costs. In February it worked on three jobs. Data for these
jobs are as follows:
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Job 175 Job 178 Job 179
Balance 2/1 $13,790 $ 0 $0
Direct Materials 16,200 8,500 30,500
Direct Labor Cost 23,300 7,600 45,000
Machine Hours 400hrs. 300hrs. 2,000hrs.
Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one unfinished. The
balance of Finished Goods on February 1 is $94,000 (consisting of Job 177). Jobs 177 and 179 are sold during February.
Stutz sells its product at cost plus 40%.
Calculate the balance in Work-in-Process on February 28.
a. $23,600
b. $16,100
c. $212,390
d. $0
117. Stutz, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers’
specifications. Stutz uses job-order costing to keep track of its costs. In February it worked on three jobs. Data for these
jobs are as follows:
Job 175 Job 178 Job 179
Balance 2/1 $13,790 $ 0 $ 0
Direct Materials 16,200 8,500 30,500
Direct Labor Cost 23,300 7,600 45,000
Machine Hours 400hrs. 300hrs. 2,000hrs.
Chapter 4
Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one unfinished. The
balance of Finished Goods on February 1 is $94,000 (consisting of Job 177). Jobs 177 and 179 are sold during February.
Stutz sells its product at cost plus 40%.
Calculate the balance of Finished Goods at February 28.
a. $63,290
b. $39,500
c. $53,290
d. $63,690
e. $0
118. Sunlight, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers’
specifications. Sunlight uses job-order costing to keep track of its costs. In March it worked on three jobs. Data for these
jobs are as follows:
Job 175 Job 178 Job 179
Balance 3/1 $15,000 $ 0 $0
Direct Materials 17,200 2,340 32,600
Direct Labor Cost 20,000 8,700 42,000
Machine Hours 300hrs. 350hrs. 3,000hrs.
Overhead is applied to jobs at the rate of $20 per machine hour. By March 31, Job 178 is the only one unfinished. The
balance of finished jobs on March 1 is $60,000 (consisting of Job 177). Jobs 177 and 179 are sold during March. Sunlight
sells its product at cost plus 30%.
What is the cost of goods sold for the month of March?
a. $130,200
b. $194,600
c. $300,000
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d. $175,700
e. $320,700
119. Stutz, Inc. designs and builds basketball gymnasiums. Each gymnasium is custom-built to individual customers’
specifications. Stutz uses job-order costing to keep track of its costs. In February it worked on three jobs. Data for these
jobs are as follows:
Job 175 Job 178 Job 179
Balance 2/1 $13,790 $ 0 $0
Direct Materials 16,200 8,500 30,500
Direct Labor Cost 23,300 7,600 45,000
Machine Hours 400hrs. 300hrs. 2,000hrs.
Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one unfinished. The
balance of Finished Goods on February 1 is $94,000 (consisting of Job 177). Jobs 177 and 179 are sold during February.
Stutz sells its product at cost plus 40%.
What is sales revenue for February?
a. $219,500
b. $175,700
c. $131,600
d. $307,300
e. $237,300
Chapter 4
120. Freshy Milk Company produces dairy equipment. Most of its jobs have a number of units per job. The company has
two different departments through which all jobs pass. Overhead is applied using a plant wide rate of $15 per direct labor
hour. Direct labor wages average $6 an hour. Data for Job #3 for the year is:
Direct materials $30,000
Direct labor costs
Dept. A $50,000
Dept. B 10,000
Machine hours used
Dept. A 300 hrs.
Dept. B 3,100 hrs.
Units produced 34,000 units
Compute the total cost of Job #3.
a. $240,000
b. $987,000
c. $134,600
d. $220,800
e. $359,600
Chapter 4
121. Freshy Milk Company produces dairy equipment. Most of its jobs have a number of units per job. The company has
two different departments through which all jobs pass. Overhead is applied using a plant wide rate of $15 per direct labor
hour. Direct labor wages average $6 an hour. Data for Job #3 for the year is:
Direct materials $30,000
Direct labor costs
Dept. A $50,000
Dept. B 10,000
Machine hours used
Dept. A 300 hrs.
Dept. B 3,100 hrs.
Units produced 34,000 units
Compute the cost per unit. (Note: Round the unit cost to two decimal places.)
a. $7.06
b. $3.50
c. $6.32
d. $10.05
e. None of these.
Chapter 4
122. Jack’s Water Slides makes custom water slides for hotels. On October 1, there were three jobs in process, Jobs 812,
813, and 814. Two more jobs were started during October, Jobs 815 and 816. By October 31, Jobs 812, 814, and 816 were
finished. The following data has been collected:
Job 812 Job 813 Job 814 Job 815 Job 816
10/1 Balance (BWIP) $500 $900 $780 –— —
Direct materials 400 270 1,140 $300 $300
Direct labor 300 180 600 400 800
Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 50%. Selling and administrative
expenses for October totaled $3,000. By October 31, Jobs 812 and 816 are sold, but the customer who ordered Job 814
decided he did not want the slide, so it is still in the warehouse.
Calculate the ending balance in Work-in-Process as of October 31.
a. $2,688
b. $2,800
c. $1,500
d. $4,550
e. $3,492
Chapter 4
123. John’s Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs
812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814,
and 816 were finished. The following data has been collected:
Job 812 Job 813 Job 814 Job 815 Job 816
9/1 Balance $615 $830 $945 — —
Direct materials 750 235 1,280 $200 $915
Direct labor 420 115 560 320 875
Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative
expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job
814 decided he did not want the slide so it is still in the warehouse.
What is the ending balance of Finished Goods if the beginning balance was $0?
a. $3,457
b. $5,531.20
c. $8,206.40
d. $13,737.60
e. $2,785
Chapter 4
124. Jack’s Water Slides makes custom water slides for hotels. On October 1, there were three jobs in process: Jobs 812,
813, and 814. Two more jobs were started during October: Jobs 815 and 816. By October 31, Jobs 812, 814, and 816 were
finished. The following data has been collected:
Job 812 Job 813 Job 814 Job 815 Job 816
10/1 Balance (BWIP) $500 $900 $780 –— —
Direct materials 400 270 1,140 $300 $300
Direct labor 300 180 600 400 800
Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 50%. Selling and administrative
expenses for October totaled $3,000. By October 31, Jobs 812 and 816 are sold, but the customer who ordered Job 814
decided he did not want the slide, so it is still in the warehouse.
What is the selling price of Job 816?
a. $4,000
b. $2,000
c. $1,800
d. $2,970
e. $0, it is not completed yet.
Chapter 4
125. John’s Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs
812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814,
and 816 were finished. The following data has been collected:
Job 812 Job 813 Job 814 Job 815 Job 816
9/1 Balance $615 $830 $945 — —
Direct materials 750 235 1,280 $200 $915
Direct labor 420 115 560 320 875
Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative
expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job
814 decided he did not want the slide so it is still in the warehouse.
What is the cost of goods sold for September?
a. $5,129
b. $8,206.40
c. $5,720
d. $3,575
e. $8,586
Chapter 4
126. John’s Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs
812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814,
and 816 were finished. The following data has been collected:
Job 812 Job 813 Job 814 Job 815 Job 816
9/1 Balance $615 $830 $945 — —
Direct materials 750 235 1,280 $200 $915
Direct labor 420 115 560 320 875
Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative
expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job
814 decided he did not want the slide so it is still in the warehouse.
What is John’s operating income for the month of September?
a. $127.40
b. $8,206.40
c. $3,077.40
d. $0
e. None of these.
Chapter 4
127. Wealth Company has the following transactions for the month of November:
Purchased materials on account for $300,000
Materials requisitioned for $75,000
Direct labor for the month was incurred (but not yet paid) of $50,000.
Actual overhead for the month was $30,000. It has not been paid yet. (Charge to various payables.)
Overhead is applied to production at the rate of 50% of direct labor.
Jobs totaling $50,000 were transferred from Work-in–Process to Finished Goods.
Jobs costing $34,000 were sold.
Balances at the beginning of the month were:
Materials 34,240
Work-in-Process 0
Finished Goods 12,000
Calculate the ending balance of raw materials.
a. $300,000
b. $259,240
c. $123,900
d. $345,850
e. $200,000
128. Warwick Company has the following transactions for the month of September:
Chapter 4
Purchased materials on account for $220,384.
Materials requisitioned for $91,562.
Direct labor for the month was incurred (but not yet paid) of $69,000.
Actual overhead for the month was $41,000. It has not been paid yet. (Charge to various payables.)
Overhead is applied to production at the rate of 65% of direct labor.
Jobs totaling $42,500 were transferred from Work-in–Process to Finished Goods.
Jobs costing $23,000 were sold.
Balances at the beginning of the month were:
Materials 22,760
Work-in-Process 0
Finished Goods 10,040
What is the ending balance in Work-in–Process?
a. $162,912
b. $113,083
c. $166,414
d. $123,870
e. $0
129. Wealth Company has the following transactions for the month of November:
Purchased materials on account for $300,000
Materials requisitioned for $75,000
Direct labor for the month was incurred (but not yet paid) of $50,000.
Actual overhead for the month was $30,000. It has not been paid yet. (Charge to various payables.)
Overhead is applied to production at the rate of 50% of direct labor.
Jobs totaling $50,000 were transferred from Work-in-Process to Finished Goods.
Jobs costing $34,000 were sold.
Chapter 4
Balances at the beginning of the month were:
Materials 34,240
Work-in-Process 0
Finished Goods 12,000
What is the ending balance of Finished Goods?
a. $23,321
b. $28,000
c. $64,321
d. $0
e. $10,040
130. The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Direct materials placed into production $9,000
Direct labor hours worked 300 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Plantwide overhead rate is $22.50 per machine hour.
One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?
a. $9,000
b. $20,250
c. $13,500
d. $15,750
Chapter 4
131. The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Direct materials placed into production $9,000
Direct labor hours worked 300 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Plantwide overhead rate is $22.50 per machine hour.
Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?
a. $18
b. $31.50
c. $27
d. $40.50
Chapter 4
132. Wealth Company has the following transactions for the month of November:
Purchased materials on account for $300,000
Materials requisitioned for $75,000
Direct labor for the month was incurred (but not yet paid) of $50,000.
Actual overhead for the month was $30,000. It has not been paid yet. (Charge to various payables.)
Overhead is applied to production at the rate of 50% of direct labor.
Jobs totaling $50,000 were transferred from Work-in–Process to Finished Goods.
Jobs costing $34,000 were sold.
Balances at the beginning of the month were:
Materials 34,240
Work-in-Process 0
Finished Goods 12,000
What is the correct journal entry to record actual overhead for the month?
a.
Overhead Control 30,000
Various Payables 30,000
b.
Raw Materials 15,000
Various Payables 15,000
c.
Accounts Receivables 30,000
Cash Account 30,000
d.
Various Payable 15,000
Overhead Control 15,000
e. None of these are correct.