Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a job order cost system. The time tickets from May jobs are summarized below. Job 5-100 $10,240 Job 5-101 6,240 Job 5-102 7,680 Job 5-103 4,640 Factory supervision 2,800 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $35 per hour.
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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Recording Direct Labor and Factory
Overhead Chamlee Industries Inc. manufactures recreational vehicles. Chamlee Industries uses a
job order cost system. The time tickets from May jobs are summarized below.Job 5-100 $10,240 Job 5-101 6,240 Job 5-102 7,680 Job 5-103 4,640 Factory supervision 2,800 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $35 per hour.
a. Determine the total
factory labor costs transferred to Work in Process and Factory Overhead for May. If required, round your answers to nearest dollar.Factory labor costs transferred to Work in Process $fill in the blank 1 Factory labor costs transferred to Factory Overhead $fill in the blank 2 b. Determine the amount of factory overhead applied to production for May. If required, round your interim calculation and final answer to nearest dollar.
$fill in the blank 3c. Illustrate the effects of the factory overhead applied in (b) on the accounts and financial statements.
If no account or activity is affected, select "No effect" from the drop-down list and leave the corresponding number entry box blank. Enter account decreases and
cash outflows as negative amounts.Balance Sheet Assets = Liabilities + Stockholders' Equity + = + fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 Statement of Cash Flows Income Statement fill in the blank 13 fill in the blank 15
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