At the beginning of July, the company has one job, job number 605, in progress from the previous month. This job is for an order of 20 small, standard doghouses. As of July 1, $512.00 of direct materials have been used, $480.00 of direct labor have been charged to the job and $48.00 of overhead was applied to the job. Click on the link below to get more detail on job number 605. During July, In the Doghouse received an order for 16 medium, deluxe doghouses. This is job number 701 and was completed by the end of the month. Another order was received during the month, job 702, for 12 large, standard doghouses. At the end of July, job 702 was still in process. $324 of direct materials has been used, $360 of direct labor has been charged to the job, and overhead was applied to job 702 using the predetermined overhead rate of 10% of direct labor cost. Complete the following job cost sheets for the month of July In the Doghouse and answer the following questions. Job 605 20 small, standard doghouses Direct materials Direct labor Overhead Total job cost Job 701 16 medium, deluxe doghouses Direct materials Direct labor Overhead Total job cost Job 702 12 large, standard doghouses Direct materials Direct labor Overhead Total job cost What is the balance in Work in Process on July 17 $
At the beginning of July, the company has one job, job number 605, in progress from the previous month. This job is for an order of 20 small, standard doghouses. As of July 1, $512.00 of direct materials have been used, $480.00 of direct labor have been charged to the job and $48.00 of overhead was applied to the job. Click on the link below to get more detail on job number 605. During July, In the Doghouse received an order for 16 medium, deluxe doghouses. This is job number 701 and was completed by the end of the month. Another order was received during the month, job 702, for 12 large, standard doghouses. At the end of July, job 702 was still in process. $324 of direct materials has been used, $360 of direct labor has been charged to the job, and overhead was applied to job 702 using the predetermined overhead rate of 10% of direct labor cost. Complete the following job cost sheets for the month of July In the Doghouse and answer the following questions. Job 605 20 small, standard doghouses Direct materials Direct labor Overhead Total job cost Job 701 16 medium, deluxe doghouses Direct materials Direct labor Overhead Total job cost Job 702 12 large, standard doghouses Direct materials Direct labor Overhead Total job cost What is the balance in Work in Process on July 17 $
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.
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Question
Transcribed Image Text:What is the balance in Work in Process on July 31? $
Think outside the box:
What element would most likely be missing from a job cost sheet for a service organization?
+ Job number 605
Job number 605: The following job cost sheet was prepared at the end of the previous month and
shows the direct materials, direct labor, and overhead costs as of the end of the month. When the job is
completed in July, the amounts should show the totals for direct materials, direct labor, and overhead.
Job 605
20 small, standard doghouses
Direct materials
$512
Direct labor
480
Overhead
48
Total job cost
$1,040
Transcribed Image Text:At the beginning of July, the company has one job, job number 605, in progress from the previous month. This job is for an order of 20 small, standard doghouses. As of July 1, $512.00 of direct materials have been used, $480.00 of direct labor
have been charged to the job and $48.00 of overhead was applied to the job. Click on the link below to get more detail on job number 605.
During July, In the Doghouse received an order for 16 medium, deluxe doghouses. This is job number 701 and was completed by the end of the month.
Another order was received during the month, job 702, for 12 large, standard doghouses. At the end of July, job 702 was still in process. $324 of direct materials has been used, $360 of direct labor has been charged to the job, and overhead was
applied to job 702 using the predetermined overhead rate of 10% of direct labor cost.
Complete the following job cost sheets for the month of July In the Doghouse and answer the following questions.
Job 605
20 small, standard doghouses
Direct materials
Direct labor
Overhead
Total job cost
Job 701
16 medium, deluxe doghouses
Direct materials
Direct labor
Overhead
Total job cost
Job 702
12 large, standard doghouses
Direct materials
Direct labor
Overhead
Total job cost
What is the balance in Work in Process on July 1? $
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