a. REQUIREMENTS #2 and #3 ONLY of Exercise 4-49 (picture 2). Assume Direct Labor workers make $20 per hour, so with the given labor cost per job, you can determine the number of hours worked. CHANGE the Exercise to say that Overhead is applied at the rate of $32 per direct labor hour. ALSO CHANGE to say that Job #39 and Job #40 were completed and sold, while Job #41 and Job #42 are complete but not sold, and Job #43 is not completed yet.b. Use the information in Problem 4-53 (picture 2) to prepare journal entries for the month of July with the following CHANGES. First, assume that the company uses a plantwide overhead rate based on direct labor dollars. Also assume that estimated information for the year includes Direct labor dollars of $1,642,000. Finally, assume that the company sells its jobs at a selling price equal to (cost + 25% of cost markup). Exercise 4-49 Calculation of Work in Process and Cost of Goods Sold withMultiple JobsEnsign Landscape Design designs landscape plans and plants the material for clients. On April1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started,Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following datawere gathered:Job 40$3.400Job 39Job 41Job 42 Job 43Balance, April 1Direct materials$540$2.990700560375$3,500$6,900Direct labor5006004902,5003,000Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%.Selling and administrative expenses for April totaled $4,575. (Round all amounts to the nearestdollar.)Required:1. Prepare job-order cost sheets for cach job as of April 30.2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Soldfor April.3. Construct an income statement for Ensign Landscape Design for the month of April. Problem 4-53 Overhead Application and Job-Order CostingHeurion Company is a job-order costing firm that uses a plantwide overhead rate based ondirect labor hours. Estimated information for the year is as follows:Overhead$789,000Direct labor hours100,000Heurion worked on five jobs in July. Data are as follows:Job 741Job 742Job 743Job 744Job 745Balance, July 1$29,870$27,880$ 0$ 0$ 8,420$5,215Direct materials$25,500$39,800$14,450$13,600Direct labor cost$61,300$48,500$28,700$24,500$21,300Direct labor hours4,0003,4001,9801,6001,400By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process.Required:1. Calculate the plantwide overhead rate for Heurion Company. (Note: Round to thenearest cent.)2. Prepare job-order cost sheets for each job showing all costs through July 31. (Note: Roundall amounts to the nearest dollar.)3. Calculate the balance in Work in Process on July 31.4. Calculate Cost of Goods Sold for July.

Name: a. REQUIREMENTS #2 and #3 ONLY of Exercise 4-49 (picture 2). Assume
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: a. REQUIREMENTS #2 and #3 ONLY of Exercise 4-49 (picture 2). Assume Direct Labor workers make $20 per hour, so with the given labor cost per job, you can determine the number of hours worked. CHANGE the Exercise to say that Overhead is applied at

Answered: . REQUIREMENTS #2 and #3 ONLY of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

a. REQUIREMENTS #2 and #3 ONLY of Exercise 4-49 (picture 2). Assume Direct Labor workers make $20 per hour, so with the given labor cost per job, you can determine the number of hours worked. CHANGE the Exercise to say that Overhead is applied at the rate of $32 per direct labor hour. ALSO CHANGE to say that Job #39 and Job #40 were completed and sold, while Job #41 and Job #42 are complete but not sold, and Job #43 is not completed yet.

b. Use the information in Problem 4-53 (picture 2) to prepare journal entries for the month of July with the following CHANGES. First, assume that the company uses a plantwide overhead rate based on direct labor dollars. Also assume that estimated information for the year includes Direct labor dollars of $1,642,000. Finally, assume that the company sells its jobs at a selling price equal to (cost + 25% of cost markup).

Exercise 4-49 Calculation of Work in Process and Cost of Goods Sold with
Multiple Jobs
Ensign Landscape Design designs landscape plans and plants the material for clients. On April
1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started,
Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data
were gathered:
Job 40
$3.400
Job 39
Job 41
Job 42 Job 43
Balance, April 1
Direct materials
$540
$2.990
700
560
375
$3,500
$6,900
Direct labor
500
600
490
2,500
3,000
Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%.
Selling and administrative expenses for April totaled $4,575. (Round all amounts to the nearest
dollar.)
Required:
1. Prepare job-order cost sheets for cach job as of April 30.
2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold
for April.
3. Construct an income statement for Ensign Landscape Design for the month of April.

Problem 4-53 Overhead Application and Job-Order Costing
Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on
direct labor hours. Estimated information for the year is as follows:
Overhead
$789,000
Direct labor hours
100,000
Heurion worked on five jobs in July. Data are as follows:
Job 741
Job 742
Job 743
Job 744
Job 745
Balance, July 1
$29,870
$27,880
$ 0
$ 0
$ 8,420
$5,215
Direct materials
$25,500
$39,800
$14,450
$13,600
Direct labor cost
$61,300
$48,500
$28,700
$24,500
$21,300
Direct labor hours
4,000
3,400
1,980
1,600
1,400
By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process.
Required:
1. Calculate the plantwide overhead rate for Heurion Company. (Note: Round to the
nearest cent.)
2. Prepare job-order cost sheets for each job showing all costs through July 31. (Note: Round
all amounts to the nearest dollar.)
3. Calculate the balance in Work in Process on July 31.
4. Calculate Cost of Goods Sold for July.

Expert Solution

Step 1

Hello. Since your question has multiple parts, we will solve first question for you. If you want remaining parts to be solved, then please resubmit the whole question and specify those parts you want us to solve.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.