ACCT chapter4

CHAPTER 4
JOB COSTING

4.16 (10 min) Job order costing, process costing.

a. Job costing l. Job costing
b. Process costing m. Process costing
c. Job costing n. Job costing
d. Process costing o. Job costing
e. Job costing p. Job costing
f. Process costing q. Job costing
g. Job costing r. Process costing
h. Job costing (but some process costing) s. Job costing
i. Process costing t. Process costing
j. Process costing u. Job costing
k. Job costing

4-17 (20 min.) Actual costing, normal costing, accounting for manufacturing overhead.

1. = = = 1.80 or 185%

=

= = 1.9 or 190%
2. Costs of Job 626 under actual and normal costing follow:

Actual Normal Costing Costing
Direct materials $ 40,000 $ 40,000
Direct manufacturing labor costs 30,000 30,000
Manufacturing overhead costs $30,000  1.90; $30,000  1.80 57,000 54,000
Total manufacturing costs of Job 626 $127,000 $124,000

3. = 

= $1,450,000  1.80

= $2,610,000

= –

= $2,755,000  $2,610,000 = $145,000

There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying actual manufacturing labor costs and the actual manufacturing overhead rate. This, of course equals the actual manufacturing overhead costs. All actual overhead costs are allocated to products. Hence, there is no under- or overallocatead overhead.

4-18 (20 -30 min.) Job costing, normal and actual costing.
1. = = = $50 per direct labor-hour = = = $42 per direct labor-hour

These rates differ because both the numerator and the denominator in the two calculations are different—one based on budgeted numbers and the other based on actual numbers.

2a.
Laguna
Model
Mission
Model Normal costing
Direct costs
Direct materials
Direct labor

Indirect costs
Assembly support ($50  900; $50  1,010)
Total costs

$106,450 36,276