completed on March 15th. The other two jobs were still in process at March 31st, CCT's year end. Here is a summary of the data from th ob cost sheets for the 3 jobs: Job 1602 Job 1603 Job 1604 February costs incurred: 9,000 7.300 11,680 Direct materials 16,000 24 Direct labour 13,500 Manufacturing overhead March costs incurred: 21,600 Direct materials 8,400 21,000 Direct Labour 4,000 5,800 10,300 Manufacturing overhead ? Manutactunng overhead is applied to jobs on the basis of direct labour cost. Balances in the inventory accounts at the end of February were as follows: | Raw Materials 40,000 Work in Process Finished goods 85,000 Required (where possible complete your work in the space immediately below each question. If you need more space insert additional rows): 1 What is the February 28th work in process balance? Assume no over/under applied manufacturing overhead. 2 What is the predetermined overhead rate that CCI uses to apply manufacturing overhead? What manufacturing overhead was applied to the 3 jobs in March? 3 If Cl incurred actual manutactunng overhead of $4,000 in indırect matenals, 58,200 in indirect labour and $20,500 in other vanous manufacturing overhead costs, what was the over/underapplied overhead for March?
completed on March 15th. The other two jobs were still in process at March 31st, CCT's year end. Here is a summary of the data from th ob cost sheets for the 3 jobs: Job 1602 Job 1603 Job 1604 February costs incurred: 9,000 7.300 11,680 Direct materials 16,000 24 Direct labour 13,500 Manufacturing overhead March costs incurred: 21,600 Direct materials 8,400 21,000 Direct Labour 4,000 5,800 10,300 Manufacturing overhead ? Manutactunng overhead is applied to jobs on the basis of direct labour cost. Balances in the inventory accounts at the end of February were as follows: | Raw Materials 40,000 Work in Process Finished goods 85,000 Required (where possible complete your work in the space immediately below each question. If you need more space insert additional rows): 1 What is the February 28th work in process balance? Assume no over/under applied manufacturing overhead. 2 What is the predetermined overhead rate that CCI uses to apply manufacturing overhead? What manufacturing overhead was applied to the 3 jobs in March? 3 If Cl incurred actual manutactunng overhead of $4,000 in indırect matenals, 58,200 in indirect labour and $20,500 in other vanous manufacturing overhead costs, what was the over/underapplied overhead for March?
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
Transcribed Image Text:Custom Cabinets Inc. (CCI) uses a job-order costing system. During February and March only 3 jobs were worked on. Job 1602 was
completed on March 15th. The other two jobs were still in process at March 31st, CC's year end. Here is a summary of the data from the
job cost sheets for the 3 jobs:
Job 1602
Job 1603
Job 1604
February costs incurred:
Direct materials
$
16,000
$
9,000
Direct labour
13,500
7,300
Manufacturing overhead
March costs incurred:
21,600
11,680
Direct materials
8,400
21,000
Direct Labour
4,000
5,800
10,300
Manufacturing overhead
Manutacturing overhead is applied to jobs on the basis of direct labour cost. Balances in the inventory accounts at the end of February
were as follows:
Raw Materials
40,000
Work in Process
Finished goods
85,000
Required (where possible complete your work in the space immediately below each question. If you
need more space insert additional rows):
1 What is the February 28th work in process balance? Assume no over/under applied manufacturing overhead.
2 What is the predetermined overhead rate that CCI uses to apply manufacturing overhead? What manufacturing overhead was
applied to the 3 jobs in March?
It CCl incurred actual manutacturing overhead of $4,000 in indırect materials, $8,200 in indirect labour and $20,500 in other vanous
manufacturing overhead costs, what was the over/underapplied overhead for March?
4
What is the Raw Materials ending inventory balance at the end of March assuming CCI did not make any raw material purchases
during March?
5 Assume that, during March, CCI sold goods costing $45,000. What is the finished goods inventory balance at the end of March?
6 What is the Work-in-Process Inventory ending balance at March 31st? Assume over/underapplied inventory is closed out to cost of
goods sold.
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