A manufacturer employs a job-order cost system. All jobs ordinarily pass through all three-production depart- ments, and Job 101 and Job 102 were completed during the current month Production Departments Direct Labor Rate Mfg. Overhead Application Rates Department 1 P 12.00 150% direct materials cost Department 2 18.00 P8.00 per machine hour Department 3 15.00 200% of direct labor cost JOВ 101 JOВ 102 JOВ 103 Beginning work in process Direct materials P 25,500 P 32,400 P 26,000 P 5,000 P Department 1 P 40,000 P 58,000 Department 2 P 3,000 P 14,000 Department 3 P P P Direct labor (Direct Labor Hours) Department 1 500 400 300 Department 2 Department 3 200 250 350 1,500 1,800 2,500 Machine hour (Machine Hours) Department 1 Department 2 Department 3 1,200 1,500 2,700 150 300 200 The cost of completed JOB 101 is A P 131,500 P 189,700 C P 202,600 D P215,200
A manufacturer employs a job-order cost system. All jobs ordinarily pass through all three-production depart- ments, and Job 101 and Job 102 were completed during the current month Production Departments Direct Labor Rate Mfg. Overhead Application Rates Department 1 P 12.00 150% direct materials cost Department 2 18.00 P8.00 per machine hour Department 3 15.00 200% of direct labor cost JOВ 101 JOВ 102 JOВ 103 Beginning work in process Direct materials P 25,500 P 32,400 P 26,000 P 5,000 P Department 1 P 40,000 P 58,000 Department 2 P 3,000 P 14,000 Department 3 P P P Direct labor (Direct Labor Hours) Department 1 500 400 300 Department 2 Department 3 200 250 350 1,500 1,800 2,500 Machine hour (Machine Hours) Department 1 Department 2 Department 3 1,200 1,500 2,700 150 300 200 The cost of completed JOB 101 is A P 131,500 P 189,700 C P 202,600 D P215,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
HI KINDLY ANSWER NO. 6 THANK YOU SO MUCH :)
Transcribed Image Text:5. WILMA COMPANY has underpplied overhead of P 45,000 for the year. Before disposition of the underapplied
overhead, selected year-end balances from Wilma's accounting records were:
Sales
1,200,000
Cost of goods sold
Direct materials inventory
Work-in-process inventory
Finished goods inventory
720,000
56,000
54,000
90,000
Under Wilma's cost accounting system, over- or underapplied overhead is allocated to appropriate inventories
and cost of goods sold based on year-end balances. In its year-end income statement, Wilma should report CGS
of:
A P 682,500
P 684,000
C P 757,500
D P 765,000
A manufacturer employs a job-order cost system. All jobs ordinarily pass through all three-production depart-
ments, and Job 101 and Job 102 were completed during the current month
6.
Production Departments
Direct Labor Rate
Mfg. Overhead Application Rates
Department 1
12.00
150% direct materials cost
Department 2
18.00
P 8.00 per machine hour
Department 3
15.00
200% of direct labor cost
JЮВ 101
JОВ 102
JЮВ 103
Beginning work in process
P
25,500 P
32,400 P
Direct materials
26,000 P
5,000 P
Department 1
P
40,000 P
58,000
Department 2
P
3,000 P
14,000
Department 3
P
Direct labor (Direct Labor Hours)
Department 1
500
400
300
partment 2
200
250
350
Department 3
1,500
1,800
2,500
Machine hour (Machine Hours)
Department 1
Department 2
Department 3
1,200
1,500
2,700
150
300
200
The cost of completed JOB 101 is
A P 131,500
B
P 189,700
C P202,600
D P215,200
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