1-> ✔ ✔ Pittman Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Pittman for 2020 are as follows: (Click the icon to view the T-accounts.) ✪ (Click the icon to view the additional information.) Read the requirements. Requirement 1. What was the amount of direct materials issued to production during 2020? Direct materials issued to production during 2020 was T-accounts Direct Materials Control 1-1-2020 40,000 230,000 1-1-2020 Dir. Manuf. 139,000 labor Manufacturing Overhead Control 512,000 Work-in-Process Control 40,000 Print 350,000 Manufacturing Overhead Allocated Done Finished Goods Control 8,000 1-1-2020 923,380 Cost of Goods Sold - X 758,100 More Info a. Direct manufacturing labor wage rate was $10 per hour. b. Manufacturing overhead was allocated at $13 per direct manufacturing labor-hour. 4. 5. C. During the year, sales revenues were $1,060,000, and marketing and distribution costs were $128,000. Requirements 1. What was the amount of direct materials issued to production during 2020? 2. What was the amount of manufacturing overhead allocated to jobs during 2020? 3. What was the total cost of jobs completed during 2020? What was the balance of work-in-process inventory on December 31, 2020? What was the cost of goods sold before proration of under-or overallocated overhead? Whet wee What was the under- or overallocated manufacturing overhead in 2020? ww 6. 7. Adjust for the under- or overallocated manufacturing overhead using the following the following: a. Write-off to Cost of Goods Sold b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 8. Using each of the approaches in requirement 7, calculate Pittman's operating income for 2020. 9. Which approach in requirement 7 do you recommend Pittman use? Explain your answer briefly. - X X
1-> ✔ ✔ Pittman Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Pittman for 2020 are as follows: (Click the icon to view the T-accounts.) ✪ (Click the icon to view the additional information.) Read the requirements. Requirement 1. What was the amount of direct materials issued to production during 2020? Direct materials issued to production during 2020 was T-accounts Direct Materials Control 1-1-2020 40,000 230,000 1-1-2020 Dir. Manuf. 139,000 labor Manufacturing Overhead Control 512,000 Work-in-Process Control 40,000 Print 350,000 Manufacturing Overhead Allocated Done Finished Goods Control 8,000 1-1-2020 923,380 Cost of Goods Sold - X 758,100 More Info a. Direct manufacturing labor wage rate was $10 per hour. b. Manufacturing overhead was allocated at $13 per direct manufacturing labor-hour. 4. 5. C. During the year, sales revenues were $1,060,000, and marketing and distribution costs were $128,000. Requirements 1. What was the amount of direct materials issued to production during 2020? 2. What was the amount of manufacturing overhead allocated to jobs during 2020? 3. What was the total cost of jobs completed during 2020? What was the balance of work-in-process inventory on December 31, 2020? What was the cost of goods sold before proration of under-or overallocated overhead? Whet wee What was the under- or overallocated manufacturing overhead in 2020? ww 6. 7. Adjust for the under- or overallocated manufacturing overhead using the following the following: a. Write-off to Cost of Goods Sold b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 8. Using each of the approaches in requirement 7, calculate Pittman's operating income for 2020. 9. Which approach in requirement 7 do you recommend Pittman use? Explain your answer briefly. - X X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:FI
Pittman Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Pittman for 2020 are as follows:
(Click the icon to view the T-accounts.)
i (Click the icon to view the additional information.)
Read the requirements.
Requirement 1. What was the amount of direct materials issued to production during 2020?
Direct materials issued to production during 2020 was
T-accounts
Direct Materials Control
40,000
1-1-2020
139,000
Manufacturing Overhead Control
512,000
Work-in-Process Control
230,000 1-1-2020
Dir. Manuf.
labor
40,000
Print
350,000
Manufacturing Overhead
Allocated
Done
Finished Goods Control
8,000
1-1-2020
923,380
Cost of Goods Sold
-
758,100
X
More Info
a.
Direct manufacturing labor wage rate was $10 per hour.
b. Manufacturing overhead was allocated at $13 per direct
manufacturing labor-hour.
4.
5.
C.
Requirements
6.
7.
During the year, sales revenues were $1,060,000, and marketing and
distribution costs were $128,000.
1.
What was the amount of direct materials issued to production during 2020?
2. What was the amount of manufacturing overhead allocated to jobs during
2020?
3. What was the total cost of jobs completed during 2020?
What was the balance of work-in-process inventory on December 31, 2020?
What was the cost of goods sold before proration of under-or
overallocated overhead?
What was the under- or overallocated manufacturing overhead in 2020?
Adjust for the under- or overallocated manufacturing overhead using
the following:
a. Write-off to Cost of Goods Sold
b.
Proration based on ending balances (before proration)
in Work-in-Process Control, Finished Goods Control, and Cost of Goods
Sold
8.
9. Which approach in requirement 7 do you recommend Pittman use? Explain
your answer briefly.
Using each of the approaches in requirement 7, calculate Pittman's operating
income for 2020.
X
X
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