Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 49,000 direct labor hours. During March, the company worked on the following five jobs: Job Beginning Balance Direct Materials added during March Direct Labor added during March Direct Labor Hours added during March 134 $120,600 $6,000 $9,400 140 158 125,450 3,500 12,160 450 212 21,800 88,400 36,650 3,500 287 36,350 71,800 31,850 2,550 301 18,990 21,845 1,400 Total $304,200 $188,690 $111,905 8,040 Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March. Actual overhead for the month of March was $176,300. The manufacturing overhead account is disposed of annually, not monthly. Calculate the total cost for each of the five jobs as of March 31. Job 134 Job 158 Job 212 Job 287 Job 301 Total Cost $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount

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Description: Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require significant manual labor to ensure adherence to strict manufacturing specifica

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...

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Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 49,000 direct labor hours. During March, the company worked on the following five jobs:

Job	Beginning Balance	Direct Materials added during March	Direct Labor added during March	Direct Labor Hours added during March
134	$120,600	$6,000	$9,400	140
158	125,450	3,500	12,160	450
212	21,800	88,400	36,650	3,500
287	36,350	71,800	31,850	2,550
301		18,990	21,845	1,400
Total	$304,200	$188,690	$111,905	8,040

Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March.

Actual overhead for the month of March was $176,300. The manufacturing overhead account is disposed of annually, not monthly.

Calculate the total cost for each of the five jobs as of March 31.

		Job 134		Job 158		Job 212		Job 287		Job 301
Total Cost		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing
system. Because the microscopes' optics require significant manual labor to ensure adherence to strict manufacturing
specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its
manufacturing overhead would be $1,960,000 and that employees would work a total of 49,000 direct labor hours. During March,
the company worked on the following five jobs:
Direct Materials
Direct Labor
Direct Labor Hours
Beginning
added during
added during
added during
Job
Balance
March
March
March
134
$120,600
$6,000
$9,400
140
158
125,450
3,500
12,160
450
212
21,800
88,400
36,650
3,500
287
36,350
71,800
31,850
2,550
301
18,990
21,845
1,400
Total
$304,200
$188,690
$111,905
8,040
Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During
March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March.
Actual overhead for the month of March was $176,300. The manufacturing overhead account is disposed of annually, not monthly.

Calculate the total cost for each of the five jobs as of March 31.
Job 134
Job 158
Job 212
Job 287
Total
$
$
Cost
%24
%24

Expert Solution

CALCULATION

WORKING :

Overhead rate = $1,960,000 / 49,000 = 40 per direct labour hour

JOB	OVERHEAD APPLIED
134	140 X 40 = 5,600
158	450 X 40 = 18,000
212	3,500 X 40 = 140,000
287	2,550 X 40 = 102,000
301	1,400 X 40 = 56,000

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