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ACCT 327 TAKE-HOME QUIZ 1 The Clash Company uses NORMAL costing in its job-order cost system. At the end of 2014, the company had only one job in Finished Goods Control. This was Job Z, which had $80,000 of cost assigned to it during 2014 (8,000 units at a cost of $10 per unit). In Work in Process Control at the end of 2014, the company also had only one job, Job A, with $15,000 of cost charged to this job during 2014. The predetermined overhead rate for 2015 is based on direct labor cost. The estimated overhead cost for 2015 is $190,000, and the estimated direct labor cost for 2015 is $95,000. During 2015, the company charged the following direct costs to the jobs that were worked on during the year: Job A Direct materials cost $25,000 $12,900 Direct labor cost $20,000 Job B $14,000 $18,300 Job C Job D $24,000 $40,000 $11,700 Jobs A, B, and C were completed during 2015. There were 10,000 units on Job A, 5,000 units on Job B, and 50,000 units on Job C. The actual overhead incurred during 2015 was $169,200. During 2015, the company sold 6,000 units from Job A, all 5,000 units from Job B, and 43,125 units from Job C. 1. Using the total balances in the appropriate accounts at the end of 2015, allocate (prorate) the underallocated or overallocated overhead to the appropriate accounts. When percentagizing, round your percentages to the nearest per cent. 2. Using the most theoretically correct method, allocate (prorate) the underallocated or overallocated overhead to the appropriate accounts. When percentagizing, round your percentages to the nearest per cent. 3. Using actual costing based on a time period of the whole year, compute the actual overhead rate for the year, and then compute the amount of actual overhead that would have been charged to Job D using actual costing. 4. Go back to part 1. Using normal costing, how much overhead was charged to Job D during 2015? After allocating (prorating) at the end of the year, what is the adjusted OVERHEAD balance in Job D? 5. Go back to part 2. Using normal costing, how much overhead was charged to Job D (yes, this is the same amount of overhead charged to Job D in the first part of question 4)? After allocating (prorating) at the end of the year, what is the adjusted OVERHEAD balance in Job D (this will NOT be the same as your answer in question 4)? 6. Does the amount of actual overhead charged to Job D in question 3 equal the adjusted balance of overhead on Job D in question 4? Should it? 7. Does the amount of actual overhead charged in Job D in question 3 equal the adjusted balance of overhead on Job D in question 5? Should it? This quiz is due on Monday, September 26th, and is worth 10 points