Which of the following could not be used in job order costing?

A. standards
B. an average cost per unit for all jobs
C. normal costing
D. overhead allocation based on the job’s direct labor hours

1. Ariel Co. has a job order costing system and an overhead application rate of 120
percent of direct labor cost. Job #33 is charged with direct material of P12,000 and
overhead of P7,200. Job #34 has direct material of P2,000 and direct labor of P9,000.
What amount of direct labor cost has been charged to Job #33?
6,000
8,640
7,200
14,400

Maria Co. uses a job order costing system and the following information is available from

m
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its records. The company has 3 jobs in process: #5, #8, and #12.
Raw material used P120,000

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Direct labor per hour P8.50
Overhead applied based on

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direct labor cost 120%
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Direct material was requisitioned as follows for each job respectively: 30 percent, 25
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percent, and 25 percent; the balance of the requisitions was considered indirect. Direct
labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is P33,000.
Other actual overhead costs totaled P36,000.
o

What is the total amount of overhead applied to Job #8?

aC s

18,250
v i y re

26,350
30,000
31,620
ed d

The journal entry to record the incurrence and payment of overhead costs for factory
ar stu

insurance requires a debit to

A. Cash and a credit to Manufacturing Overhead
B. Manufacturing Overhead and a credit to Accounts Payable
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C. Manufacturing Overhead and a credit to Cash

D. Work in Process Inventory and a credit to Cash
Th

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 The following data were taken from the records of West Company:

08/31/2016 09/30/2016
Inventories:
Raw material ? 50,000
Work in process 80,000 95,000
Finished goods 60,000 78,000

Raw materials purchase 46,000

Factory overhead, 75% of direct labor cost 63,000
Selling and administrative expenses, 12.5% of sales 25,000
Net income for September, 2016 25,000
What is the cost of raw materials inventory on August 31, 2016?
30, 000
40, 000
46, 000

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er as
50, 000

co
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DMMA allocates support department costs to its individual schools using the step

o.
method. Information for May 2016 is as follows:
rs e
ou urc
Maintenance Utilities
Overhead costs incurred 99,000 54,000
Service provided to departments:
o

Maintenance - 10%
aC s

Power 20% -
v i y re

School of Education 30% 20%

School of Technology 50% 70%
Totals 100% 100%
What is the amount of May 2016 support department costs allocated to School of
ed d

Education?
ar stu

40,500
42,120
46,100
sh is

49,125
Th

Sanchez Company’s Job 205 for the manufacture of 6,600 coats was completed during
August 2016 at the following unit costs:
Direct materials 1,5000
Direct labor 1,000
Factory overhead (include an allowance of P 50 for spoiled work) 500
3,000
Final inspection of Job 205 disclosed 600 spoiled coats which were sold to a jobber for P
600,000. Assume that spoilage loss is charged to all production during August 2016.
What would be the unit cost of the good coats produced on Job 205?

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 2,900
2,950
3,000
3,145

Griffin Company uses job costing. Factory overhead is applied to production at a

determined rate of 150% of direct-labor cost. Any over–or under applied factory overhead
is closed to the cost of goods sold account at the end of each month. Additional
information is available as follows:
Job 101 was the only job in process at January 31, 2016, with accumulated costs as
follows:
Direct materials P4,000
Direct labor 2,000
Applied factory overhead 3,000
9,000

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Jobs 102, 103, and 104 were started during February.
Direct materials requisitions for February totaled P 26,000.

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direct-labor cost of P 20,000 was incurred for February.
Actual factory overhead was P 32,000 for February.

o.
the only job still in process at February 28, 2016 was Job 104, with costs of P2,800 for
rs e
direct materials and P 1,800 for direct labor.
ou urc
The cost of goods manufactured for February 2016 was
77,700
78,000
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79,700
aC s

85,000
v i y re

The Justin Company manufactures one product and accounts for costs by a job-order cost
system. You have obtained the following information for the year ended December
31,2011 from the corporation's books and records:
ed d

Total manufacturing cost added during 2011 based

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on actual direct materials, actual direct labor and applied

factory overhead on actual direct labor cost 1,000,000
Cost of goods manufactured based on actual
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direct materials and direct labor and applied factory overhead 970,000
Applied factory overhead to work-in-process based on direct labor costs 75%
Th

Applied factory overhead for the year, based on total manufacturing cost 27%
Beginning work-in-process inventory was 80% of ending work-in-process inventory.
Compute the cost of direct materials used for the year ended December 31, 2011.
370,000
970,000
990,000
970,500

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 Maria Co’s year end manufacturing costs were as follows:
Direct materials and direct labor 500,000
Depreciation of manufacturing equipment 70,000
Depreciation of factory building 40,000
Janitor’s wages for cleaning factory premises 15,000
How much of these costs should be inventoried for external reporting purpose?
625,000
610,000
585,000
500,000

Jocelyn Corp. which manufactures plastic coated metal clips. The information was among
Blum’s year-end manufacturing costs.
Wages

m
er as
Machine operators 200,000

co
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Maintenance workers 30,000
Factory foreman 90,000

o.
Materials Used
Metal wire rs e
500,000
ou urc
Lubricant for oiling machinery 10,000
Plastic coating 380,000
Blum’s year-end direct materials is
o

890,000
aC s

880,000
v i y re

510,000
500,000At the end of the last fiscal year, Mon Company had the following account
balances:
Overapplied overhead P 6,000
ed d

Cost of Goods Sold P980,000

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Work in Process Inventory P 38,000

Finished Goods Inventory P 82,000
If the most common treatment of assigning overapplied overhead was used, the final
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balance in Cost of Goods Sold would have been

985,340
Th

974,660
974,000
986,000

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 Pomelo Mfg. Co. started 150 units in process on job order # 13. The prime costs placed in
process consisted of P30,000 and P18,000 for materials and direct labor, respectively, and
a pre-determined rate was used to charges factory overhead to production at 133-1/3% of
the direct labor cost. Upon completion of the job order, units equal to 20% of the good
output were rejected for failing to meet strict quality control requirements.
The company sells rejected units as scrap at only 1/3 of production cost, and bills
customers at 150% of production cost.
If the rejected units were ascribed to company failure, the billing price of job order #13
would be:
86,400
90,000
102,000
108,000

m
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A typical job-cost record would provide information about all of the following items
related to an order except:

co
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A. the cost of direct materials used
B. administrative costs

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C. direct labor costs incurred
rs e
D. applied manufacturing overhead
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E. direct labor hours worked

The logical explanation for an entry that includes a debit to Manufacturing Overhead
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control and a credit to Prepaid Insurance is

aC s

A. the insurance company sent the company a refund of its policy premium
v i y re

B. overhead for insurance was applied to production

C. insurance for production equipment expired
D. insurance was paid on production equipment
ed d

In a job order cost system, direct labor costs usually are recorded initially as an increase
ar stu

in
Factory overhead applied
Factory overhead control
sh is

Finished goods
Work in process
Th

The following data are obtained from Pongs Manufacturing Company:

*Cost of goods manufactured is P187,500
*Inventory variation are as follows: raw materials ending inventory is one-third based on
raw materials beginning; no initial inventory of wok-in-process, but at end of period P
12,500 was on hand; finished goods inventory was four times as large at end of period as
at the start.
*Net income after taxes amounted to P 26,000; income tax rate is 35%.
*Purchase of raw materials amounted to net income before taxes.

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 Breakdown of costs incurred in manufacturing cost was as follows:
Raw materials consumed 50%
Direct labor 30%
Overhead 20%
Compute the amount raw materials beginning inventory:
38,571
60,000
90,000
40,000
Maria Co. uses a job order costing system and the following information is available from
its records. The company has 3 jobs in process: #5, #8, and #12.
Raw material used P120,000
Direct labor per hour P8.50
Overhead applied based on
direct labor cost 120%
Direct material was requisitioned as follows for each job respectively: 30 percent, 25

m
er as
percent, and 25 percent; the balance of the requisitions was considered indirect. Direct
labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is P33,000.

co
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Other actual overhead costs totaled P36,000.
Assume the balance in Work in Process Inventory was P18,500 on June 1 and P25,297 on

o.
June 30. The balance on June 30 represents one job that contains direct material of
rs e
P11,250. How many direct labor hours have been worked on this job (rounded to the
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nearest hour)?
751
1,324
o

1,653
aC s

2,976
v i y re

Osmena Corporation is a manufacturing company engaged in the production of single

special product known as “Marvel”. Production costs are accumulated with the use of a
job-order-cost system.
ed d

The following information is available as of June 1, 2016:

ar stu

Work-in-process 10,710
Direct materials inventory 48,600
In analyzing the job-order cost sheets, the records disclosed that the compositions of the
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work-in-process inventory on June 1, 2016 were as follows:

Direct materials used 3,960
Th

Direct labor (900 hours) 4,500

Factory overhead applie 2,250
10,710
The following manufacturing activity occurred during the month of June 2016:
Purchase direct materials costing P 60,000
Direct labor worked 9,900 hours at P 5 per hour
Factory overhead of P 2.50 per direct labor hour was applied to production
At the end of June 2016, the following information was gathered in connection with the
inventories:

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 Inventory of work-in-process:
Direct materials used 12,960
Direct labor (1,500 hours) 7,500
Factory overhead applied 3,750
24,210
Inventory of direct materials 51,000
Compute the cost of goods manufactured:
142,560
118,350
131,850
108,600

Sanchez Company’s Job 205 for the manufacture of 6,600 coats was completed during
August 2016 at the following unit costs:
irect materials 1,500
Direct labor 1,000

m
er as
Factory overhead (include an allowance of P 50 for spoiled work) 500
3,000

co
eH w
Final inspection of Job 205 disclosed 600 spoiled coats which were sold to a jobber for P
600,000. Assume that spoilage loss is charged to all production during August 2016.

o.
Assuming the spoilage loss is attributable to exacting specifications or chargeable to
rs e
particular job, what would be the unit cost of the good coats produced on Job 205?
ou urc
2,900
2,950
3,000
o

3,145
aC s
v i y re
ed d
ar stu
sh is
Th

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