A job order for 500 units of children's party gievaways were processed with costs P80,000 and P30,000 for direct materials and direct labor, respectively. Fcatory overhead was applied at 50% of direct labor cost which exludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of P50 per unit. What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?

A job order for 500 units of children's party gievaways were processed with costs P80,000 and P30,000 for direct materials and direct labor, respectively. Fcatory overhead was applied at 50% of direct labor cost which exludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of P50 per unit. What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information is available for Lock - Tite Company, which produces special - order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 44, 000 $ 58,000 Work in process 10,000 20, 200 Finished goods 61,000 33, 700 Activities and information for May Raw materials purchases (paid with cash) 189, 000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 15, 000 Indirect labor 57, 500 Other overhead costs 93, 500 Sales (received in cash ) 1,900,000 Predetermined overhead rate based on direct labor cost 55% Raw materials purchases for cash. Direct materials usage. Indirect materials usage. Prepare journal entries for the above transactions for the month of May.
Eastern Furniture Inc. manufactures several different designs of outdoor furniture. Production costs are accounted for using a job order cost system. During the current period, 100 metal tables were manufactured on Job 275. Costs charged to the job before inspection are: Materials $3,300 Labor (150 hours x $10 per hour) 1,500 Factory overhead ($12 per labor hour) 1,800 Total cost charged to Job 275 $6,600 Inspection revealed that an umbrella ring had not been attached to the tables. To correct the oversight, a small part was welded to the table leg brace and the brace was repainted. The small part cost $.50 for each table, and the primer and paint cost $ 1.00 for each table. Each table required l/4 hour of labor. Required: Prepare general journal entries to record the rework and the transfer of the completed tables to Finished Goods Inventory.
Southwest Toys manufactures globes at its San Fernando facility. The company uses job costing and provides you with the following information regarding operations for April 2020: (Click the icon to view the operations information.) Assume the spoiled units have no disposal value. Read the requirements. Requirement 1. What is the unit cost of making the 35,000 globes? The unit cost of making 35,000 globes is Data table Total globes manufactured Globes rejected as spoiled units Total manufacturing cost $ - 35,000 850 700,000 X Requirements 1. 2. 3. If the spoilage is considered normal, what is the increase in the unit cost of good globes manufactured as a result of the spoilage? What is the unit cost of making the 35,000 globes? What is the total cost of the 850 spoiled units? 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred. Print Done - X
Baggins Bed and Second Breakfast utilizes a job order costing system. They only had one job for the period. The material requisition form for the period has been provided below: Direct materials purchased $18,000 Direct materials used $17,600 In addition to the direct materials, the following amounts were incurred during production: $9,200 in direct labor and $6,500 in applied manufacturing overhead. They began the period with $4,300 in beginning balance for this job. What is the ending balance for this job?
Nicholes Corporation finished job no. 600 on June 1. On June 10, the company sold job no. 600 for $25,000 on account to a credit customer. Total manufacturing costs allocated to this job at the time of the sale amounted to $16,000. a. Record the transfer of job no. 600 from Work in Process to Finished Goods on June 1. b. Record the sale of job no. 600, and the transfer of its costs from Finished Goods, on June 10.
Parkway Company incurred $134,000 in material costs during July. Additionally, the 12,800 units in the Work-in-Process Inventory on July 1 had materials assigned to them of $40,000, even though they were only 5% complete as to materials. No additional units were started during July, and there were no unfinished units on hand on July 31. What is the material cost per equivalent unit for July, assuming Parkway uses weighted-average process costing? Multiple Choice $10.47 $11.99 $13.59 $15.47
Want help
ABC uses a standard costing system in connection with the manufacture of a "one size fits all" article clothing. Each unit of finished product contains 2 yards of direct materials. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The cost of the direct material is P3 per yard. The standard direct material cost per unit of finished product is (up to two decimal places)
Green Scenery Company provides landscape services and operated based on customer order. The company uses normal costing, and the overhead allocation base is direct labour costs. On 1st May, the balance of raw material inventory was RM24,000. There were two incomplete jobs as of 1st May, with the following costs: Direct materials Direct labour Applied overhead Total costs Direct materials Direct labour In May, Green Scenery also started production of two news jobs. Job 47 and Job 33 were continued of which Job 33 completed and billed to Bell Company. Details of the costs incurred during May by each job is as follows: Job 47 Zee Enterprise RM10,250 9,000 2,700 RM21,950 Property taxes Material storage rental Inspection costs Job 47 RM2,000 3,000 Transportation costs Telephone and other miscellaneous Machine depreciation Advertising costs Job 33 RM3,200 4,500 Job 33 Bell Company Other transactions in May: 1. Received payment of RM12,500 for Job 34 that was delivered to the customer in…
Osprey Production uses job-order costing for batches of customer-printed T- shirts. For job R45, the company incurred the following costs: Direct materials used $4,235 Direct labor Applied overhead $1,300 $450 Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. If Job R45 consisted of 570 shirts, how much is the cost per shirt for this job? A. $10.50 B. $14.95 C. $15.25 D. $10.80
Harper Company's Job 301 for the manufacture of 2,200 T-shirts was completed during August 2014 at the followving unit costs: Direct materials P 20.00 18.00 Direct labor Factory overhead (includes an allowance of PI for spoiled work) 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled T-shirts which were sold to a jobber for P 6,000. 2. Assume that spoilage loss is charged to al production during August. What would be the unit cost of the good units produced on Job 301? а. Р 53.00 b. P 55.00 c. P 56.00 d. P 58.00
Gitano Products operates a job-order casting system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased) Its predetermined overhead rate was based on a cost formula that estimated $113, 100 of manufacturing overhead for an estimated allocation base of $87, 000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 133, 000 Direct labor cost $ 83,000 Manufacturing overhead costs: Indirect labor S 105,800 Property taxes S 8,500 Depreciation of equipment $ 18,000 Maintenance $ 16,000 Insurance $ 7,000 Rent, building $ 38,000 Beginning Ending Raw Materials $26,000 $ 14,000 Work in Process $ 48,000 $ 37,000 Finished Goods $ 73,000 $ 61,000 Required: 1. Compute the predetermined overhead rate for the year