The Allen Company uses a job-order costing system.

The Iollowing activity took place during the month oI

March:

Required: Prepare journal entries to record the inIormation above. Key your entries by the letters a through i.
Assume all purchases are made on account.

. Hirpara Inc. has provided the Iollowing data Ior July

Required: Prepare T-accounts Ior Raw Materials, Work in Process, Finished Goods, and ManuIacturing Overhead, and
Goods Sold. Record the beginning balances and each oI the transactions listed above. Finally, determine the ending bal

. Whether a company uses process costing or job-order

costing depends on its industry. A number oI companies
in diIIerent industries are listed below: Brick
manuIacturer Contract printer that produces posters,
books, and pamphlets to order Natural gas production
company Dairy Iarm Coal mining company Specialty
coIIee roaster (roasts small batches oI specialty coIIee
beans) Required: For each company, indicate whether
the company is most likely to use job-order costing or
process costing.

4. Granite Company uses a job-order costing system. T

company applies manuIacturing overhead to jobs usi
predetermined overhead rate based on direct labor-ho
year, manuIacturing overhead and direct labor-hours
estimated at $80,000 and 16,000 hours respectively,
year. In June, Job #15 was completed. Materials co
job totaled $1,500 and labor costs totaled $,400 at $
At the end oI the year, it was determined that the com
worked 15,000 direct labor-hours Ior the year, and in
$78,000 in actual manuIacturing overhead costs. Req
Determine the predetermined overhead rate Ior the y
Determine the amount oI overhead charged to jobs d
year. c. Determine the amount oI underapplied or ov
overhead Ior the year. d. Assuming that 100 units we
completed, determine the unit cost that would ap

pear on the job cost sheet Ior Job #15.

a. $80,000 16,000 DLHs $5 per DLH b. 15,000 DLHs x $5 per DLH $75,000

5. Job 87 was recently completed. The Iollowing data

recorded on its job cost sheet: The

The company applies manuIacturing overhead on the basis oI machine-hours. The predetermined overhead rate is $1 p
machine-hour. Required: Compute the unit product cost that would appear on the job cost sheet Ior this job.

6. During July, the Iollowing transactions were recorde

Vorwerk Corporation. The company uses process co
Required: Prepare

Required: Prepare journal entries Ior each oI the transactions listed above.

7. McclaIlin Corporation uses process costing. A numb

transactions that occurred in August are listed below
Prepare

Required: Prepare journal entries Ior each oI the transactions listed above.

8. Harmon Company uses the weighted-average metho

process costing system. The Curing Department oI H
Company reported the Iollowing inIormation Ior the
November.

All materials are added at the beginning oI the process. Required: Compute the Iollowing items using the weighted-ave
method: a. The equivalent units oI production Ior materials. b. The cost per equivalent unit Ior conversion. c. The total
assigned to units transIerred out oI the Curing Department during November. d. The cost assigned to work in process in
oI November 0.

10. Baroche Inc. uses the weighted-average method in it

costing system. The Iollowing data concern the oper
the company's Iirst processing department Ior a recen
Required: Using

Required: Using the weighted-average method: a. Determine the equivalent units oI production Ior materials and conve
b. Determine the cost per equivalent unit Ior materials and conversion costs. c. Determine the cost oI units transIerred o
department during the month. d. Determine the cost oI ending work in process inventory in the department.