Build Company is a manufacturing company and uses job order costingsystem. At the beginning of 2022, there were no jobs in process, but thefollowing costs were incurred during the year:Job AJob BJob CDirect materials10,00020,00015,000Direct labor5,0004,0002,500Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor costin the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company'spolicy to apply overhead into production based on direct labor costs. At the end of the year, only JobsA and C were completed.What is the ending work-in process?a. 48,000b. 24,000с. 32,000d. 40,000abd

Job costing is a method of costing in which all costs will be accumulated and assigned on the basis…

Answered: Build Company is a manufacturing…

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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The Fielder manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February WIP Inventory A/C February 1 Bal. b / f 51,250 Direct Materials Used 256,400 Other transactions incurred:  Indirect material issued to production was $38,000  Total manufacturing labor incurred in February was $345,000, 80% of this amount represented direct labor.  Other manufacturing overhead costs incurred for February amounted to $340,750.  Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit…
The Harriot company manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and 5,024,000 overhear cost would be incurred during 2020 The following activities took place in the work in process inventory during February WIP Inventory A/C November 1 b/f $51250 Direct Materials used 256,400 Other transactions incurred: Indirect material issued to production was $40,360 Total manufacturing labour incurred in November wa $368,000, 75% of this amount represented direct labour Other manufacturing overhead costs incurred for November mounted to $340,490 Two jobs were completed with total cost o f $384,000 & 270,000 respectively. They were sold on account at a margin of 33 and a quart percent on sales. Require: I). Compute harriots predetermined manufacturing overhead rate for 2020. ii) state…
Build Company is a manufacturing company and uses job order costing system. At the beginning of 2022, there were no jobs in process, but the following costs were incurred during the year: Job A Job C 15,000 2,500 Job B Direct materials Direct labor 10,000 20,000 4,000 5,000 Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor cost in the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company's policy to apply overhead into production based on direct labor costs. At the end of the year, only Jobs A and C were completed. What is the cost of goods manufactured at the end of the year? A. 47,500 В. 32,500 C. 56,500 D. 48,500 A В C O D
Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $3,960,000 (180,000 hours at $22/hour) and that factory overhead would be $1,480,000 for the current period. At the end of the period, the records show that there had been 160,000 hours of direct labor and $1,180,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?
Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,400, direct labor $14,640, and manufacturing overhead $19,520. As of January 1, Job 49 had been completed at a cost of $109,800 and was part of finished goods inventory. There was a $18,300 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $148,840 and $192,760, respectively. The following additional events occurred during the month. 1. 2. 3. 4. 5. (a) Purchased additional raw materials of $109,800 on account. Incurred factory labor costs of $85,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $14,640; and…
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? Pick one a. $54,800 underapplied b. $6,000 overapplied c. $54,800 overapplied d. $6,000 underapplied A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The entry to apply the factory overhead costs for the year would include a a. credit to Factory Overhead for $432,000 b. debit to Factory…
At the beginning of the year, Custom Mfg. established Its predetermined overhead rate by using the following cost predictions: overhead costs, $600,000, and direct materlals costs, $200,000. At year-end, the company's records show that actual overhead costs for the year are $1,499,100. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360, 000 82, 000 55,000 $497,000 Total actual direct materials cost 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs Incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplled. 4. Prepare the adjusting entry to allocate any over- or underapplled overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Req 4 Determine the predetermined overhead rate. Overhead Rate…
At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead co for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360,000 76,000 51,000 Total actual direct materials cost $487,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. es 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Enter the overhead costs incurred and the amounts applied during…
Build Company is a manufacturing company and uses job order costing system. At the beginning of 2022, there were no jobs in process, but the following costs were incurred during the year: Job A Job B Job C 10,000 5,000 Direct materials 20,000 15,000 Direct labor 4,000 2,500 Build Company also estimated in 2022 an overhead in the amount of P300,000 and direct labor cost in the amount of P150,000. Actual overhead incurred for the year was P24,000. It was the company's policy to apply overhead into production based on direct labor costs. At the end of the year, only Jobs A and C were completed. What is the under / over applied overhead? a. 9,000 under b. 1,000 under c. 9,000 over d. 1,000 over a d
The LLO-24784 company uses a job-order costing system with direct labor hours as its allocation base. The company estimates its manufacturing overhead cost for the year to be $974,700. During the year, actual direct labor-hours were 36,360 hours, the actual manufacturing overhead cost was $930,000, and manufacturing overhead was overapplied by $51,720. How much was the LLO-24784 company's estimated direct labor-hours used in the calculation of its predetermined overhead rate? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 32,529 direct labor-hours 36,360 direct labor-hours 36,100 direct labor-hours 34,444 direct labor-hours
Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $25.000. direct labor $15,000, and manufacturing overhead $20,000. As of January 1, Job 49 had been completed at a cost of $112.500 and was part of finished goods inventory. There was a $18.750 balance in the Raw Materials Inventory account. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $152,500 and $197.500, respectively. The following additional events occurred during the month. 1 Purchased additional raw materials of $112.500 on account. incurred factory labor costs of $87.500. Of this amount $20,000 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials…
In December 2014, Custom Mfg. established its predetermined overhead rate for jobs produced during year 2015 by using the following cost predictions: overhead costs, $400,000, and direct labor costs, $200,000. At year-end 2015, the company’s records show that actual overhead costs for the year are $1,049,200. Actual direct labor cost had been assigned to jobs as follows. Jobs completed and sold $ 400,000 Jobs in finished goods inventory 74,000 Jobs in work in process inventory 46,000 Total actual direct labor cost $ 520,000 4. Required information 1. Determine the predetermined overhead rate for year 2015.

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