Chapter 2 ICE 2-2
docx
keyboard_arrow_up
School
University of Nevada, Las Vegas *
*We aren’t endorsed by this school
Course
202
Subject
Accounting
Date
Feb 20, 2024
Type
docx
Pages
9
Uploaded by MateSeaUrchin3621
CHAPTER 2 - IN CLASS EXAMPLE 2-2
HALLOWEEN COSTUMES
Party Town specializes in making high end costumes for very exclusive Halloween parties. Party Town uses job costing to account for its operations. Each costume is considered a job. Prior to May, Party Town had started the following costumes which were in work in process inventory as of May 1. Job 304 –Black Panther Costume
As of may 1
Job 306 – Emoji Costume
As of may 1
In May, the following costumes were started into production. Job 307 – Heineken Dog
After May 1
Job 308 – UNLV Rebel Costume
May 31 (end)
What makes each of these costumes a job? Unique, custom, made to order
To make a costume what is needed? Fabric, thread, sewing machine, pins, employees, glue
Ponder Point: Visualize the process in three different areas:
1)
Buy materials and materials are stored in materials store room Raw Materials Warehouse
2)
Produce the costumes Factory
3)
Completed costumes in a separate area ready to be sold. Finished Goods Warehouse
Do each of the three areas correspond to different inventory accounts in a job order system? If so, what are they? Raw materials, Work in progress, Finished Goods (in order as above)
Job Cost Information
:
At the end of May, Jobs 304, 306, and 307 are completed but only Jobs 304 and 307 are delivered to customers (sold). These 3 jobs are called
Cost of Goods Manufactured- the cost of
completed jobs. Jobs 304 and 307 are
Cost of Goods Sold. Job 308 is started but not _completed_. What type of inventory account is Job 308? WIP
Job 306 is started and completed but not __sold__. What type of inventory account is Job 306? Finished Goods
Jobs 304 and 307 are started, completed and ___sold____. Their cost will end up in COGS
When jobs are started their costs go to _______WIP________. Into production
When jobs are completed their costs go to _________FG__________ and costs come out of ______WIP_______. When job are sold their costs go to ________COGS__________ and out of _______FG__________. JOBS
Where does the cost end up at the end of May?
304
COGS
306
FG
COGM = cost 307
COGS
jobs 304,306,
308
WIP
307. COGS = Cost of 304 and 307
FG = Cost of 306
WIP = cost of 308
Ponder Point:
Think about how cost flows relate to the financial statements. Costs are accumulated in the inventory accounts. Once the inventory is sold the costs move to the income statement as cost of
goods sold.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Party Town Information for May:
The following information is available as of May 1 for the work-in-process inventory account. These are the beginning balances at the beginning of May. All work done on 304 and 306 was done during or before April. In the problem below, please make sure to distinguish between the year and the month of May. Job#
Direct materials
Direct labor
Manufacturing
overhead
Total costs
304
$3,000
$1,800
$2,520
$7,320
306
4,000
2,100
2,940
9,040
Total costs
$7,000
$3,900
$5,460
$16,360
During May, Party Town pays an hourly rate of $15 for direct labor. The manufacturing overhead costs are applied to jobs based on the direct labor hours used and the same overhead application rate is used for all jobs. The estimated overhead for the year was $42,000 and the estimated direct labor hours for the year were 2,000. Actual overhead for the year was $45,000. During the month of May, Party Town spends $5,800 to purchase materials and $4,650 for manufacturing overhead. The operations in May are summarized below and these items are direct materials and direct labor and were traced to these jobs. Recall that overhead is never traced to jobs as it is an indirect manufacturing cost and must be allocated to the jobs based on a predetermined overhead
rate. Job#
Material requisition
summary
Time card summary
(Hours)
304
$1,100
40
306
900
30
307
2,800
110
308
750
25
Total
$5,550
205
Required: 1)
Calculate the predetermined overhead rate used to apply overhead. Hint: You will have to compute the predetermined overhead rate based on estimated annual overhead divided by estimated annual allocation base (in this case direct labor hours). POHR = Estimated Overhead/Estimated Allocation Base $21/ DLH 2)
Analyze the costs that go to each job
Job 304 – (Work In Process Account or WIP) Beginning Balance, May 1 7320
Direct Materials 1100
Direct Labor 600
Overhead applied 840
Ending Balance, May 31
9860 COGS
Job 306 – (Work In Process Account) Beginning Balance, May 1 9040
Direct Materials 900
Direct Labor 450
Overhead applied 630
Ending Balance, May 31
11020 FG
Job 307 – (Work In Process Account) Beginning Balance, May 1 0
Direct Materials 2800
Direct Labor 1650
Overhead applied 2310
Ending Balance, May 31
6760 COGS
Job 308 – (Work In Process Account) Beginning Balance, May 1 0
Direct Materials 750
Direct Labor 375
Overhead applied 525
Ending Balance, May 31
1650 WIP
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
3)
Summarize the following:
WIP inventory at the end of May
WIP would represent a job that was started into production but not completed.
Which job was WIP at the end of May?
Job 308 $1650 May 31
COGM for May (cost of goods manufactured or completed)
COGM represents the cost of any jobs that were completed during May. When jobs are completed their costs move from _____WIP_______ to ________FG________. Which jobs were completed?
304 9860
306 11,020
307 6760
COGM
27,640
Alternative Calculation of COGM
Beginning WIP (May 1)
+ Costs added during May:
Dm DL
OH applied
Total cost of manufacturing -
End WIP (May 31)
COGM
16,360 + (5,550+3075+4305)= 29,290 – 1,650= 27,640
COGS for May (cost of goods sold)
COGS represents the costs of jobs that were completed and then later sold. When jobs are sold then their costs move from ____FG__________ to ______COGS___________.
Which jobs were completed and then later sold?
Jobs
304 9860
307 6760
Cogs 16620 Job level
Alternative Calculation of COGS F/S level
Beg FG (May 1) 0
+ COGM (304,306,307) 27640
Cost of jobs available to sell
27640
-
FG (May 31) (unsold but completed)
11020
COGS
4)
Overhead Analysis: for the month of may
Was overhead under or overapplied? (Write off any variance to cost of goods sold immediately).
Hint: Compare overhead applied to all of the jobs to the actual overhead incurred. Applied overhead is based on the predetermined overhead rate and actual overhead is given. Applied OH for may 4305
Actual OH for may 4650
Difference (under applied)
345
If OH is under applied then COGS is too LOW
. Therefore we must INCREASE
COGS. Prelim COGS 16620
Adjustment for underappied OH +345
Final COGS 16965
If OH is overapplied then COGS is too HIGH. Therefore we must decrease
COGS
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
How do you find the ending work in process inventory?
arrow_forward
help
arrow_forward
Get correct answer accounting questions
arrow_forward
Dog
arrow_forward
Task #9: Jobs TG1000, RW3000, and XY200 were delivered to customers during the month, sales terms n/15. Sale price is 30% markup over cost. Job AP5000 was finished during the month.
Record journal entries:
1.To record Job XY200 and AP5000 completed
2.To record Job TG1000 and RW3000 and XY200 sold
Account: Finished Goods
Job TG1000
Job RW3000
Total
Direct Materials
$10,000
$30,000
$40,000
Direct Labor
$15,000
$37,750
$52,750
Factory Overhead
$4,000
$12,000
$16,000
$29,000
$79,750
$108,750
Account: Work in Process
Job XY200
Job AP5000
Total
Direct Materials
$9,000
$40,000
$49,000
Direct Labor
$6,000
$19,200
$25,200
Factory Overhead
$5,400
$24,000
$29,400
$20,400
$83,200
$103,600
arrow_forward
Journal Entries in Job Cost Accounting
Process
Practice Problem 5:
During the month of July, Creative Printers purchased $ 25,000 of
materials on account. The company sent direct materials from the
storeroom to jobs as follows: $ 9,000 to Job No. 106, and $ 14,000 to
Job No. 107. The company also sent indirect materials of $ 1,000 to
each job.
The
company assigned production-related labor costs to jobs (direct
labor) and to Overhead as follows: $4,000 to Job No. 106, $ 16,000 to
Job No. 107, and indirect labor of $2,000 to Job No. 106.
Pass the jourmal entries in the books of Creative printers for material,
labour and overheads.
arrow_forward
Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order.
On March 1, OCFF had two jobs in process with the following costs:
Work in Process
Job 33
Job 34
Balance on
3/1
$4,600
4,300
$ 8,900
Source documents revealed the following during March:
Materials
Requisitions
Forms
$ 3,600
3,700
4,400
1,300
$ 13,000
Job 33:
Job 34
Job 35
Indirect
Labor Time
Tickets
$ 4,900
4,600
3,600
1,100
$ 14,200
Status of Job at Month-End
Completed and sold i
Completed, but not sold i
In process
The company applies overhead to products at a rate of 60 percent of direct labor cost.
Required:
1. Compute the cost of Jobs 33, 34, and 35 at the end of the month.
2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end
arrow_forward
Preparing and using a job cost record to prepare journal entries
Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses job order costing.
On April 2, Ki began production of 6,000 DVDs, Job 423, for Paradigm Pictures for $1.20 sales price per DVD. Ki promised to deliver the DVDs to Paradigm Pictures by April 5. Ki incurred the following direct costs:
Ki Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $574,000 and estimated direct labor costs of job 423 was completed and shipped on April 3.
Requirements
Prepare a job cost record for job 423. Calculate the predetermined overhead allocation rate (round to two decimal places); then allocate manufacturing overhead to the job.
Journalize in summary form the requisition of direct materials and the assignment of direct labor and the allocation of manufacturing overhead to job 423. Wages are not yet paid.
Journalize completion of the job and the…
arrow_forward
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the
end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.
Job 602
Job 603
Job 604
Direct
$1,800
$3,300
$2,700
materials
Direct
900
1,480
2,300
labor
Overhead
450
740
1,150
Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct
labor, $250; and overhead, $125. Jobs 603 and 604 were started in June. Overhead cost is applied with a
predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be
finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did
not change over these months.)
Required:
1. What is the cost of the raw materials used in June for each of the three jobs and in total?
2. How much total direct labor cost is incurred in June?
3.…
arrow_forward
⦁ Prepare job cost record Global Tire manufactures tires for all-terrain vehicles. Global uses job costing and has a perpetual inventory system.
On September 22, Global received an order for 100 TX tires from ATV Corporation at a price of $52 each. The job, assigned number 298, was promised for October 10.After purchasing the materials, Global began production on September 30 and incurred the following direct labor and direct materials costs in completing the order:
Global allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($394,000) and expected direct labor hours (18,000). Job 298 was completed on October 3 and shipped to ATV on October 5.
Requirements:1. Prepare a job cost record for Job 298.2. Calculate the total profit and the per-unit profit for Job 298.
arrow_forward
4
arrow_forward
Prepare for the jobs in process and determine the balances of three inventory accounts at the end of the year
arrow_forward
Journalize the entry to record the factory labor costs
Journalize the entry to apply factory overhead to production for November.
arrow_forward
es
Following are simplified job cost sheets for three custom jobs at the end of June for Custom Patios.
Job Number 102
Materials
Labor
Overhead
Materials
Labor
Overhead
Job Number 103
Materials
Labor
Overhead
Job Number 104
$ 15,000
8,000
4,000
$ 33,000
14,200
7,100
All jobs were started in June. Overhead is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were
finished in June, and Job 104 will be finished in July.
Req 1 and 2
102
103
1. What was the total cost of direct materials requisitioned in June?
2. How much total direct labor cost was incurred in June?
3. How much total cost is transferred to Finished Goods Inventory in June?
$ 27,000
21,000
10,500
Complete this question by entering your answers in the tabs below.
Job
How much total cost is transferred to Finished Goods Inventory in June?
Direct
Materials
Direct
Labor
Req 3
$ 15,000 $
33,000
Applied
Overhead
Total Cost
8,000 $ 4,000 $ 27,000
14,200
7,100
54,300
Cost Transferred to
Finished Goods
arrow_forward
Question 6, part 2.
Please fill in the blanks in order they need to be inuted
arrow_forward
es
Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order.
On March 1, OCFF had two jobs in process with the following costs:
Work in Process
Job 33
Job 34
Source documents revealed the following during March:
Job 33
Job 34
Job 35
Indirect
Balance on
3/1
$ 4,800
3,000
$ 7,800
Materials
Requisitions
Forms
Required 1
$ 2,200
3,800
4,100
600
$ 10,700
The company applies overhead to products at a rate of 75 percent of direct labor cost.
Job 33
Job 34
Job 35
Labor Time
Tickets
$ 4,000
4,100
3,000
1,900
$ 13,000
Required:
1. Compute the cost of Jobs 33, 34, and 35 at the end of the month.
2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end.
Status of Job at Month-End
Completed and sold
Completed, but not sold
In process
Complete this question by entering your answers in the tabs below.
Required 2
Compute the cost of Jobs 33, 34, and 35 at…
arrow_forward
Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order.
On March 1, OCFF had two jobs in process with the following costs:
Work in Process
Job 33
Job 34
Source documents revealed the following during March:
Materials
Requisitions
Forms
$ 3,300
2,800
3,900
600
$ 10,600
Job 33
Job 34
Job 35
Indirect
View transaction list
The company applies overhead to products at a rate of 70 percent of direct labor cost.
Required:
Prepare journal entries to record the materials requisitions, labor costs, and applied overhead.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
<
Journal entry worksheet
Balance on
3/1
$ 5,500
3,100
$8,600
1
2
Transaction
a
Labor Time
Tickets
$ 4,900
4,900
3,800
2,500
$ 16,100
Note: Enter debits before credits.
3
Record the issuance of raw materials to production.
Record entry
Status of Job at Month-End
Completed and sold…
arrow_forward
Part 1 Job Order Costing
John and Sam went to college together, and both majored in computer science. A few years ago, they formed a computer company called Synergy, Inc. Synergy Inc. is a manufacturer of enterprise management systems. Assume that the company has a division that does custom jobs for large clients. Production costs are accounted for using a job cost system. Suppose that at the beginning of the month, raw materials inventory totaled $8,000, manufacturing supplies amounted to $1,800, and two jobs were in process Job 355 with assigned costs of $18,750 and Job 356 with assigned costs of $2,800, and there were no finished goods inventories. There was no under-applied or over-applied manufacturing overhead on the first day of the month.
The following information summarized the month’s manufacturing activities:
Synergy purchased raw material costing $50,000 on account. Synergy purchased manufacturing supplies costing $9,000. The manager process requisitioned materials for the…
arrow_forward
Part 1 Job Order Costing
John and Sam went to college together, and both majored in computer science. A few years ago, they formed a computer company called Synergy, Inc.
Synergy Inc. is a manufacturer of enterprise management systems. Assume that the company has a division that does custom jobs for large clients. Production costs are accounted for using a job cost system.
Suppose that at the beginning of the month, raw materials inventory totaled $8,000, manufacturing supplies amounted to $1,800, and two jobs were in process Job 355 with assigned costs of $18,750 and Job 356 with assigned costs of $2,800, and there were no finished goods inventories. There was no under-applied or over-applied manufacturing overhead on the first day of the month.
The following information summarized the month's manufacturing activities:
Synergy purchased raw material costing $50,000 on account.
Synergy purchased manufacturing supplies costing $9,000. The manager process requisitioned…
arrow_forward
i need the answer quickly
arrow_forward
Expedition Company worked on five jobs during May: Jobs A10, B20, C30, D40, and E50. At the end of May, the job cost sheets for
these five jobs contained the following data:
Beginning balance
Charged to the jobs during May:
Direct materials
Direct labor
Manufacturing overhead applied
Units completed
Units sold during May
Job A10
$ 103
$ 140
$ 120
$147
150
0
1. Cost of goods sold for May
2. Finished goods inventory at the end of May
3. Work in process inventory at the end of May
Job B20
$ 120
$ 120
$ 130
$ 160
0
0
Job C30
$ 178
$ 170
$95
$107
65
65
Job D40
$132
$ 125
$150
$168
0
Required:
1. What is the cost of goods sold for May?
Note: Round "Unit product cost" to 2 decimal places and final answer to nearest dollar amount.
2. What is the total value of the finished goods inventory at the end of May?
Note: Round "Unit product cost" to 2 decimal places and final answer to nearest dollar amount.
3. What is the total value of the work in process inventory at the end of May?
Job E50
$ 200…
arrow_forward
Applying Overhead to Jobs, Costing Jobs
Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,810 and Job 94 with a beginning balance of $7,320. Jagjit applies overhead at the rate of $10 per direct labor hour. Direct labor wages average $16 per hour. Data on August costs for all jobs are as follows:
Job 93
Job 94
Job 95
Job 96
Direct materials
$1,000
$4,550
$3,310
$1,300
Direct labor cost
1,600
4,800
2,560
800
During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process.
Required:
1. Calculate the number of direct labor hours that were worked on each job in August.
Job 93
fill in the blank fe4a4a013fdefc1_1 DLH
Job 94
fill in the blank fe4a4a013fdefc1_2 DLH
Job 95
fill in the blank fe4a4a013fdefc1_3 DLH
Job 96
fill in the blank fe4a4a013fdefc1_4 DLH
2.…
arrow_forward
I don't need ai answer general accounting question
arrow_forward
Part 1: Relates to Module 18 and I have support videos in the Module 18 Resources in the applicable weekly folder.
The scenario to this part is below and the requirements follow where you will answer the questions pertaining to this part.
Glass Company makes glass orders based on the customer specifications, so the company uses job costing to track costs.
1. The company uses direct labor hours as the cost driver for manufacturing overhead application.
The company estimated the following manufacturing overhead costs for the year.
The company estimated the following usage of direct-labor hours for the year:
2. Beginning Work-in-process, September 1 (Job 55)
3. Beginning Finished Goods, September 1 (Job 57)
2. Labor Information for September:
Direct-labor hours:
$260,000
100,000
$20,000
$80,000
Job 55
Job 58
Job 59
Labor costs in factory.
Direct-labor wages
4,900
6,300
2,500
$301,400
$23,000
Indirect-labor wages
3. Direct Material Information for September:
Raw Materials, Inventory,…
arrow_forward
I only want to know how the factory overhead of job101 and job103 ( the highlighted portion of the photo on the right side) were computed in the problem 17.
arrow_forward
Please both subparts answer please quickly and no plagiarism please
arrow_forward
ces
Christopher's Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs.
Inventory balances at the beginning of the current year follow:
Raw Materials Inventory
Work in Process Inventory
Finished Goods Inventory
$ 15,100
5,200
20,500
The following transactions occurred during January:
a. Purchased materials on account for $27,000.
b. Issued materials to production totaling $21,600, 90 percent of which was traced to specific jobs and the remainder of which was
treated as indirect materials.
c. Payroll costs totaling $18,400 were recorded as follows:
$11,500 for assembly workers
$2,900 for factory supervision
$1,300 for administrative personnel
$2,700 for sales commissions
d. Recorded depreciation: $4,100 for factory machines, $1,000 for the copier used in the administrative office.
e. Recorded $1,500 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as
an administrative…
arrow_forward
Cop
arrow_forward
acc3
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Related Questions
- Dogarrow_forwardTask #9: Jobs TG1000, RW3000, and XY200 were delivered to customers during the month, sales terms n/15. Sale price is 30% markup over cost. Job AP5000 was finished during the month. Record journal entries: 1.To record Job XY200 and AP5000 completed 2.To record Job TG1000 and RW3000 and XY200 sold Account: Finished Goods Job TG1000 Job RW3000 Total Direct Materials $10,000 $30,000 $40,000 Direct Labor $15,000 $37,750 $52,750 Factory Overhead $4,000 $12,000 $16,000 $29,000 $79,750 $108,750 Account: Work in Process Job XY200 Job AP5000 Total Direct Materials $9,000 $40,000 $49,000 Direct Labor $6,000 $19,200 $25,200 Factory Overhead $5,400 $24,000 $29,400 $20,400 $83,200 $103,600arrow_forwardJournal Entries in Job Cost Accounting Process Practice Problem 5: During the month of July, Creative Printers purchased $ 25,000 of materials on account. The company sent direct materials from the storeroom to jobs as follows: $ 9,000 to Job No. 106, and $ 14,000 to Job No. 107. The company also sent indirect materials of $ 1,000 to each job. The company assigned production-related labor costs to jobs (direct labor) and to Overhead as follows: $4,000 to Job No. 106, $ 16,000 to Job No. 107, and indirect labor of $2,000 to Job No. 106. Pass the jourmal entries in the books of Creative printers for material, labour and overheads.arrow_forward
- Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 Balance on 3/1 $4,600 4,300 $ 8,900 Source documents revealed the following during March: Materials Requisitions Forms $ 3,600 3,700 4,400 1,300 $ 13,000 Job 33: Job 34 Job 35 Indirect Labor Time Tickets $ 4,900 4,600 3,600 1,100 $ 14,200 Status of Job at Month-End Completed and sold i Completed, but not sold i In process The company applies overhead to products at a rate of 60 percent of direct labor cost. Required: 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. 2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-endarrow_forwardPreparing and using a job cost record to prepare journal entries Ki Technology Co. manufactures DVDs for computer software and entertainment companies. Ki uses job order costing. On April 2, Ki began production of 6,000 DVDs, Job 423, for Paradigm Pictures for $1.20 sales price per DVD. Ki promised to deliver the DVDs to Paradigm Pictures by April 5. Ki incurred the following direct costs: Ki Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $574,000 and estimated direct labor costs of job 423 was completed and shipped on April 3. Requirements Prepare a job cost record for job 423. Calculate the predetermined overhead allocation rate (round to two decimal places); then allocate manufacturing overhead to the job. Journalize in summary form the requisition of direct materials and the assignment of direct labor and the allocation of manufacturing overhead to job 423. Wages are not yet paid. Journalize completion of the job and the…arrow_forwardThe computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. Job 602 Job 603 Job 604 Direct $1,800 $3,300 $2,700 materials Direct 900 1,480 2,300 labor Overhead 450 740 1,150 Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $250; and overhead, $125. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did not change over these months.) Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total? 2. How much total direct labor cost is incurred in June? 3.…arrow_forward
- ⦁ Prepare job cost record Global Tire manufactures tires for all-terrain vehicles. Global uses job costing and has a perpetual inventory system. On September 22, Global received an order for 100 TX tires from ATV Corporation at a price of $52 each. The job, assigned number 298, was promised for October 10.After purchasing the materials, Global began production on September 30 and incurred the following direct labor and direct materials costs in completing the order: Global allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs ($394,000) and expected direct labor hours (18,000). Job 298 was completed on October 3 and shipped to ATV on October 5. Requirements:1. Prepare a job cost record for Job 298.2. Calculate the total profit and the per-unit profit for Job 298.arrow_forward4arrow_forwardPrepare for the jobs in process and determine the balances of three inventory accounts at the end of the yeararrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education