Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materialsand worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwiseindicated.)Direct RawDirectMaterials UsedLaborJob 1$ 2,800$ 6,000Job 24,0006,0008,000Job 34,000Total$12,800$18,000Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completedduring the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factoryoverhead was $11,300.Requireda. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that theamount is insignificant.d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1. Complete this question by entering your answers in the tabs below.Req D CGMSchedReq D IncStmtReq D BalSheetReq A and CRecord the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that theamount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances witha minus sign.)AssetsEquityWork InManufacturingOverheadFinishedCommonStockRetainedCash+Raw MaterialsRevenueExpenses = Net IncomeProcessGoodsEarnings60,000 +60,000 +0 =%3D++++++++%3D+++++%3D+++++++++%3D+++%3D++++++++%3D++60,000 +0 +0 +60,000 +0 =< Req A and CReq D CGM Sched>

Name: Lehigh Manufacturing Corporation was started with the issuance of com
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Description: Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materialsand worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless ot

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and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless indicated.) Direct Raw Direct Labor $ 6,000 8,000 Materials Used $ 2,800 4,000 Job 1 Job 2 Job 3 6,000 4,000 Total $12,800 $18,000 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. A overhead was $11,300. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an e

and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless indicated.) Direct Raw Direct Labor $ 6,000 8,000 Materials Used $ 2,800 4,000 Job 1 Job 2 Job 3 6,000 4,000 Total $12,800 $18,000 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. A overhead was $11,300. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an e

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Check my work The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000. b. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $48,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,500 machine-hours were used in October. g. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 40% above cost. Required: 1. Prepare journal entries to record the…
Required information [The following information applies to the questions displayed below.] At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. At June 30 Direct materials Direct labor Overhead applied Additional Information Job 5 $ 15,800 8,800 4,400 Job 6 $ 33,400 15,000 7,500 Job 7 $ 27,400 Total transferred cost 21,800 10,900 a. Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $6,400; direct labor, $2,200; and applied overhead, $1,300. Job 5 was finished in June. b. Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July. c. Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months. 4. What is the total cost transferred to Finished Goods Inventory in June?
At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information: Job Direct Materials Direct Labor Machine Hours Job 765 $7,560 $2,268 27 Job 766 14,193 4,482 83 Job 765 produced 162 units, and Job 766 consisted of 249 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $145 per hour. a. Determine the balance on the job cost sheets for each job. Job 765 $fill in the blank 1 Job 766 $fill in the blank 2 b. Determine the cost per unit at the end of April. Round your answers to the nearest cent. Job 765 $fill in the blank 3 Job 766 $fill in the blank 4
Required information [The following information applies to the questions displayed below.] At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. At June 30 Direct materials. Direct labor Overhead applied Job 5 $ 15,800 8,800 4,400 Job 6 $33,400 15,000 7,500 Additional Information a. Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $6,400; direct labor, $2,200; and applied overhead, $1,300. Job 5 was finished in June. Predetermined overhead rate b. Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July. c. Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months. 3. What is the predetermined overhead rate? Job 7 $ 27,400 21,800 10,900 %
Saved Blueberry Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, Blueberry Corp. estimated total manufacturing overhead cost at $333,500 and total machine hours of 46,000. During the year actual manufacturing overhead incurred was $323,680 and 47,600 machine hours were used. (a) Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Pdetemined Overhed Rate per hour
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The following data summarize the operations during the year. A. Purchase of raw materials on account. $3,000 B. Raw materials used by Job 1. $500 C. Raw materials used as indirect materials. $100 D. Direct labor for Job 1. $300 E. Indirect labor incurred. $60 F. Factory utilities incurred on account. $750 G. Adjusting entry for factory depreciation. $200 H. Manufacturing overhead applied as % of direct labor. 200% I. Job 1 is transferred to finished goods. J. Job 1 is sold. $2,900 K. Manufacturing overhead is overapplied. $120 Prepare a journal entry for each transaction. If an amount box does not require an entry, leave it blank. A. Raw Materials Inventory 3,000 Accounts Payable 3,000 B. Work in Process Inventory 500 Raw Materials Inventory 500 C. Manufacturing Overhead 100 Raw Materials Inventory 100
Marco Company shows the following costs for three jobs worked on in April. Job 306 $ 29,000 20,000 10,000 Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Predetermined overhead rate Overhead applied Required: 1. Determine the amount of overhead applied to each job in April. 306 135,000 85,000 ? 0.50 Finished (sold) 307 0.50 Job 307 Additional Information a. Raw Materials Inventory has a March 31 balance of $80,000. b. Raw materials purchases in April are $500,000, and total factory payroll cost in April is $363,000. c. Actual overhead costs incurred in April are indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $635,000 cash in April. 308 $ 35,000 18,000…
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $254, 610 and total machine hours at 62, 100. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 11, 200 $ 7,700 $ 5,400 $ 24, 300 Direct labor $ 17, 400 $ 5,100 $ 4,900 $ 27,400 Machine hours 1, 300 hours 2,900 hours 900 hours 5, 100 hours Job 101 was completed and sold for $51, 900. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,610. Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places.
! Required information [The following information applies to the questions displayed below.] At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three jobs. Job 7 $ 27,800 22,600 11,300 At June 30 Direct materials Direct labor Overhead applied Additional Information Job 5 $ 16,600 9,600 4,800 Job 6 $ 33,800 15,800 7,900 a. Job 5 was started in May, and the following costs were assigned to it in May: direct materials, $6,800; direct labor, $2,600; and applied overhead, $1,700. Job 5 was finished in June. b. Job 6 and Job 7 were started in June; Job 6 was finished in June, and Job 7 is to be completed in July. c. Overhead cost is applied with a predetermined rate based on direct labor cost. The predetermined overhead rate did not change across these months. Direct labor used in June 2. What is the total cost of direct labor used in June?
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