Final inspection of job 205 disclosed 600 spoiled coats, which were sold to a jobber for P600,000. What would be the unit cost of the good coats produced on job 205 assuming that spoilage loss is charged to all production? Attributable to exacting specifications of job 205? Barnabal Company's Job 205 for the manufacture of 6,600 coat was completedduring August 2016 at the following unit costs:Direct MaterialsDirect LaborP1,5001,000Factory Overhead (include an allowance of500P3.000P50 for spoiled work)

The question is based on the concept of Cost Accounting.

Barnabal Company's Job 205 for the manufacture of 6,600 coat was completed during August 2016 at the following unit costs: Direct Materials Direct Labor P1,500 1,000 Factory Overhead (include an allowance of 500 P3.000 P50 for spoiled work)

Barnabal Company's Job 205 for the manufacture of 6,600 coat was completed during August 2016 at the following unit costs: Direct Materials Direct Labor P1,500 1,000 Factory Overhead (include an allowance of 500 P3.000 P50 for spoiled work)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

See similar textbooks

Similar questions

Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, 28,019.00; direct labor, 15,276.75; and applied factory overhead, 9,854.50. The following data pertain to these costs: The overhead application rates are 4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2. Nutt had no beginning work in process for August. Job 8958, which cost 14,190.18 to manufacture, was completed in July and was sold on account in August for 19,000. The job cost sheet for this job is shown on page 103. Of the jobs begun in August, Job 8961 was completed and sold on account for 24,000, Jobs 8962 and 8964 were completed but not sold, and Job 8963 was still in process. As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.
ABC Company’s Job 123 for the manufacture of 2,000 bags was completed during June 2022 at the following unit costs:· Direct Materials, P20· Direct Labor, P18· Overhead (including allowance of P1 for spoiled work), P18 Final inspection of Job 123 disclosed 100 spoiled bags which were sold to an online store for P1,985. Determine the total cost of completed units.
Osborn Manufacturing uses a predetermined overhead rate of S19.00 per direct labor hour. This predetermined rate wae based on a cost formula that estimates $243,200 of total manufacturing overhead for an estimated activity level of 12 800 direct labor-hours The company actually incurred $241,000 of manufacturing overhead annd 12,300 direct labor-hours during the period Required: 1. Determine the amount of underapplied or overapplied manufecturing averhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dis pose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1 Manufacturing overhead underappled by 2 The gross margin would decrease
Company A uses direct labor cost as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2018 for the company and for Job 201: Company OMR 120,000 OMR 20,000 OMR 24,000 Job 201 OMR 30,000 OMR 25,000 Direct materials Direct labor Manufacturing overhead costs Direct labor cost incurred 21,000 During 2018, and actual overhead costs were OR 142,000. Direct labor cost incurred 21,000 Instructions: (a) Compute the predetermined overhead rate. (b) Compute the total manufacturing costs for Job 201.
Integrity Company’s Job 1088 manufactured 13,750 units that were completed in February at unit costs presented as follows:Direct materials- P300Direct labor- 270Factory overhead (includes an allowance of P15 spoiled work)- P270Final inspection of Job 1088 disclosed 1,250 spoiled units, which were sold for P225,000.What would be the unit selling price if the spoilage is attributable to exacting specifications of Job 1088 and the entity maintain a gross profit of 50%?
For the year ended December 31 2017, Waltz Company incurred the following costs on job number 007 for manufacturing 500 units: Original cost accumulation:Direct materials P800,000Direct labor 500,000Manufacturing 125,000 Direct costs of reworking 200 units Direct materials P320,000Direct labor 200.000What is the cost per unit of Job number 007 if the rework costs were attributed to internal failure?
During March, Hart Company incurred the following costs on Job 122 for the manufacture of 200 motors: Original cost accumulation: Direct materials s2, 600 Direct labor 900 Factory overhead 1.350 Direct costs of reworking 10 units: Direct materials $ 100 Direct labor 180 Factory overhead 270 S 550 The rework costs were attributable to the exacting specifications of Job 122, and the full rework costs were charged to this specific job. What is the cost per finished unit of Job 122?
Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour Recently, Job K913 was completed with the following characteristics: Total direct labor-hours Direct materials Direct labor cost 150 $ 705 $ 4,650 70,000 $ 511,000 $ 2.10 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.)
-Garret Corporation uses a predetermined overhead rate calculated per direct labor hour. This plantwide predetermined rate was based on a cost formula that estimated 26297 of total manufacturing overhead for an estimated activity level of 3562 direct labor-hours. Calculate total costs for the Job2013 that requires 15 direct labor-hours. Hourly wage rate is $2,3. Direct materials used for the Job2013 is $37.
The following cost data relates to Job 355C:· Direct materials: P28,400· Indirect Materials: P7,000· Direct labor cost: P9,600· Direct labor hours of 200 hours· Indirect labor cost: P4,500· Other indirect manufacturing costs: P12,000· Manufacturing overhead cost – applied: (160 machine hours @ P25/machine hour, based on budgeted amounts)· Selling and shipping cost: P14,000The Job 355C consists of 2,000 units and has been completed. The company uses normal costing of accounting for overhead. What is the cost per unit of Job 355C?
Sensual Scents, Inc. uses a job-order cost system with machine hours as the overhead base. At the beginning of last year, Sensual estimated 38,000 machine hours and P152,000 of manufacturing overhead costs. For the year, only 37,500 machine hours were logged but P153,500 of overhead cost was incurred. 9. What is Sensual's under-or overapplied manufacturing overhead? a. P1,500 underapplied b. P 1,500 overapplied c. P 2,000 underappld d. P3,500 underapplied