Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,950 of direct materials, $6,990 of direct labor,and $9,978 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.70 perdirect labor-hour.During May, the following activity was recorded:Raw materials (all direct materials):Beginning balancePurchased during the monthUsed in productionLabor:Direct labor-hours worked during the monthDirect labor cost incurredActual manufacturing overhead costs incurredInventories:Raw materials, May 30$ 8,650$ 38,150$ 39,4502,050$ 24,660$ 33,450Work in process, May 30$ 16,976Work in process inventory on May 30 contains $3,768 of direct labor cost. Raw materials consist solely of items that are classified as directmaterials.The cost of goods manufactured for May was:Multiple ChoiceO$97,140$104,387$102,445$110,630

Cost of goods manufactured for May = $104,387Explanation:Dacosta Corporation Schedule of Cost of…

Answered: Dacosta Corporation had only one job in…

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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Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $182,400. Estimated direct labor cost was $446,500 for 19,000 hours. Actual costs for the most recent month are summarized here: Total Item Description Direct labor (1,900 hours) Cost $44,651 Indirect costs Indirect labor 2,460 3,440 3,370 4,750 Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries 5,730 1,150 1,890 4,200 5,370 Selling expenses
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $188,870. Estimated direct labor cost was $456,280 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Direct labor (1,500 hours) Indirect costs Indirect labor Indirect materials. Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Selling expenses 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead. Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 89 Complete this question by entering your answers in the tabs below. SEP Total Cost $ 45,629 84 2,570 3,460 3,240 4,760 5,680 1,230 1,830 4,260 5,380 TAO O
Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 93,000 and estimated factory overhead is $511,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($7.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used Required: 1. What is the total cost of Job A? Required 1 $ 8,400 33,000 71,500 117,500 Required 2 74,000 38,000 Required 3 5,100 4,400 71,250 14,400 6,900 2. What is the…
Crane Company uses a job order cost system. On May 1, the company has balances in Raw Materials Inventory of $15,700 and Work in Process Inventory of $3,770 and two jobs in process: Job No. 429 $2,430, and Job No. 430 $1,340. During May, the company incurred factory labor of $15,440. A summary of source documents reveals the following. Job Number MaterialsRequisition Slips Labor TimeTickets 429 $2,940 $2,300 430 3,850 3,400 431 4,680 $11,470 8,170 $13,870 General use 940 1,570 $12,410 $15,440 Crane Company applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 429 is completed during the month. (a) Record the May 1 inventory balances and the factory labor incurred.(b) Record (1) material usage from requisition slips, (2) factory labor usage from time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429.…
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 Purchased materials on account for $29,720. 3 Requisitioned materials totaling $24,510 for use in production. Of the total, $9,190 was for Job 58, $8,880 for Job 59, and the remainder for Job 60. 31 Incurred direct labor for the month of $34,580, with an average wage of $19 per hour. Job 58 used 810 hours; Job 59, 620 hours; and Job 60, 390 hours. 31 Incurred and paid actual overhead of $17,860 (credit Various Payables). 31 Charged overhead to production at the rate of $4.90 per direct labor hour. 31 Completed and transferred Jobs 58 and 59 to Finished Goods. 31 Sold Job 57 (see beginning balance of Finished Goods) and Job 58 to their respective clients on account for a price of cost plus 40%. Beginning balances as of May 1 were: Materials $2,280 Work in Process 0 Finished Goods (Job 57) 25,620 Required: 1. Prepare…
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…
Barnes Company uses a job order cost system. The following data summarize the operations related to production for October: October 1 Materials purchased on account, $603,850. 2 Materials requisitioned, $641,100, of which $75,300 was for general factory use. 31 Factory labor used, $688,540, of which $90,730 was indirect. 31 Other costs incurred on account for factory overhead, $154,470; selling expenses, $234,760; and administrative expenses, $145,220. 31 Prepaid expenses expired for factory overhead were $30,340; for selling expenses, $27,590; and for administrative expenses, $18,760. 31 Depreciation of office building was $86,990; of office equipment, $41,730; and of factory equipment, $32,800. 31 Factory overhead costs applied to jobs, $363,550. 31 Jobs completed, $1,017,780. 31 Cost of goods sold, $868,240. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1…
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). c. Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $131.000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76.200 machine-hours were used in October. g. Jobs costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 28% above cost. Required: 1. Prepare journal entries to record the transactions given…
Lorrimer Company has a job-order cost system. The following debits (credits) appeared in theWork-in-Process account for the month of June. June 1, balance $12,000June 30, direct materials 50,000 During the month of June, direct labor totaled $30,000 and $24,000 of overhead was applied toproduction. Finished Goods was debited $100,000 during June.Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturingoverhead of $3,400. What was the amount of direct materials charged to Job number 83?a. $3,400b. $4,250c. $8,350d. $7,580
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,390. Estimated direct labor cost was $460,020 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,870 hours) $ 46,003 Indirect costs Indirect labor 2,450 Indirect materials 3,330 Factory rent 3,290 Factory supervision 4,720 Factory depreciation 5,680 Factory janitorial work 1,130 Factory insurance 1,880 General and administrative salaries 4,110 Selling expenses 5,440 Required:1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $20,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,200 machine-hours were used in October. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 40% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare…
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,000 machine-hours were used in October. g. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost. Required: 1. Prepare journal entries to record the transactions given…

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