Complete the Inventory and Overhead T-Accounts For Job 1 and Job 2 and Job 3
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...
Related questions
Question
100%
Complete the Inventory and
![Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes
the operations related to production and sales for January, the first month of operations. Kaitlyn,
Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead
costs and direct labor hours. Total direct labor hours for January are 75,000 hours.
Purchased the following raw materials:
6,000 units for Job 1 @ $10/unit
5,500 units for Job 2 @ $15/unit
12,300 units for Job 3 @ $5/unit
Requisitioned materials for production:
5,000 units for Job 1 @ $10/unit
4,000 units for Job 2 @ $15/unit
10,000 unit for Job 3 @ $5/unit
Direct labor costs:
2,000 hours of direct labor on Job 1 at $15 per hour
10,000 hours of direct labor on Job 2 at $14 per hour
8,000 hours of direct labor on Job 3 at $20 per hour
Total factory overhead costs for the month:
• $70,000 of indirect materials
$115,000 of indirect labor
$97,000 of utilities costs
$18,000 of factory depreciation
Production data:
Job 1 produced 5,000 units out of an estimated possible 8,000 units,
Job 2 produced 20,000 units out of an estimated possible 24,000 units
Job 3 produced 11,000 units out of an estimated possible 12,100 units,
Sales data:
Job 1 → 4,000 units sold on credit for $25
unit
per
Job 2 → 18,000 units sold on credit for $30 per unit
Job 3 → 10,000 units sold on credit for $50
реr
unit
To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets.
Helpful Hint: While not required for this assignment, it might be helpful to create the related
journal entries.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0062e4a6-9690-49aa-88d1-44e3a48d2adc%2F5aa782be-fb82-4937-bc7d-00a7d3a8c868%2F5gcgo7v_processed.png&w=3840&q=75)
Transcribed Image Text:Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes
the operations related to production and sales for January, the first month of operations. Kaitlyn,
Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead
costs and direct labor hours. Total direct labor hours for January are 75,000 hours.
Purchased the following raw materials:
6,000 units for Job 1 @ $10/unit
5,500 units for Job 2 @ $15/unit
12,300 units for Job 3 @ $5/unit
Requisitioned materials for production:
5,000 units for Job 1 @ $10/unit
4,000 units for Job 2 @ $15/unit
10,000 unit for Job 3 @ $5/unit
Direct labor costs:
2,000 hours of direct labor on Job 1 at $15 per hour
10,000 hours of direct labor on Job 2 at $14 per hour
8,000 hours of direct labor on Job 3 at $20 per hour
Total factory overhead costs for the month:
• $70,000 of indirect materials
$115,000 of indirect labor
$97,000 of utilities costs
$18,000 of factory depreciation
Production data:
Job 1 produced 5,000 units out of an estimated possible 8,000 units,
Job 2 produced 20,000 units out of an estimated possible 24,000 units
Job 3 produced 11,000 units out of an estimated possible 12,100 units,
Sales data:
Job 1 → 4,000 units sold on credit for $25
unit
per
Job 2 → 18,000 units sold on credit for $30 per unit
Job 3 → 10,000 units sold on credit for $50
реr
unit
To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets.
Helpful Hint: While not required for this assignment, it might be helpful to create the related
journal entries.
![Inventory and Overhead T-Accounts: Job 1 and Job 2 and Job 3
Raw Materials
WIP
Finished Goods
Overhead](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0062e4a6-9690-49aa-88d1-44e3a48d2adc%2F5aa782be-fb82-4937-bc7d-00a7d3a8c868%2F5bphi4_processed.png&w=3840&q=75)
Transcribed Image Text:Inventory and Overhead T-Accounts: Job 1 and Job 2 and Job 3
Raw Materials
WIP
Finished Goods
Overhead
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning