At the beginning of the month, Arthur's Olde Consulting Corporation had two Jobs iIn process that had the following costs assigned from prevlous months. Job Mumber SY-400 SY-403 Direct Labor Applied Overhead. $23,990 16,070 During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required $27,100 in direct labor. For SY-403, $81,500 in labor was used. During the month, the only new job, SY-404, was started but not finished. Total direct labor costs for all jobs amounted to $151,170 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including copying, printing. and travel costs to meet with clients. Overhead is applied at a rate of 70 percent of direct labor costs for this and previous periods. Actual overhead for the month was $107,800, Required: a. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed? b. What is the cost of Job SY-404 at the end of the month? c. How much was under- or overapplied service overhead for the month?
At the beginning of the month, Arthur's Olde Consulting Corporation had two Jobs iIn process that had the following costs assigned from prevlous months. Job Mumber SY-400 SY-403 Direct Labor Applied Overhead. $23,990 16,070 During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required $27,100 in direct labor. For SY-403, $81,500 in labor was used. During the month, the only new job, SY-404, was started but not finished. Total direct labor costs for all jobs amounted to $151,170 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including copying, printing. and travel costs to meet with clients. Overhead is applied at a rate of 70 percent of direct labor costs for this and previous periods. Actual overhead for the month was $107,800, Required: a. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed? b. What is the cost of Job SY-404 at the end of the month? c. How much was under- or overapplied service overhead for the month?
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
A. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed?
B. What is the cost of Job SY-404 at the end of the month?
C. How much was under or oversupplied service overhead for the month?
Transcribed Image Text:At the beginning of the month, Arthur's Olde Consulting Corporation had two Jobs in process that had the following costs assigned
from previous months.
Job Mumber Direct Labor Applied Overhead
$23,990
16,070
SY-400
SY-403
During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required
$27,100 in direct labor. For SY-403, $81,500 in labor was used.
During the month, the only new job, SY-404, was started but not finished. Total direct labor costs for all jobs amounted to $151,170 for
the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including copying, printing.
and travel costs to meet with clients. Overhead is applied at a rate of 70 percent of direct labor costs for this and previous periods.
Actual overhead for the month was $107,800.
Required:
a. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed?
b. What is the cost of Job SY-404 at the end of the month?
c. How much was under- or overapplied service overhead for the month?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed?
SY-400
SY-403
The costs of jobs at the beginning of the manth
The costs of jobs when completed
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