During the year, the company had the following budget at the beginning of the year:manufacturing its products. The company employs the job order costing system and appliesMagnificent Corp. has two departments, Forming and Finishing Departmentsd. P900,000d.WhaFor numbers 4 and 57.interF12b.InappliesC.overhead as percentage of direct labor.FormingP2,450,0001,250,000625,000FinishingP1,500,000P 600,00060,0008.Raw materialsDirect laborFactory OverheadJob orders 050 and 051 had the following data for its prime cost.Job Order 050P 375,000188,500Job Order 051P 250,00090,000Raw materialsDirect labor4. What is the total cost of each job order?Job order 050Job order 051P349,000a. P675,000b. P657,750c. P675,500d. P617,625P349,000P381.000P344,5005. How much is the total overhead applied?Job order 050Job order 051a. P311,500b. P 94,250P 9,000P 9,000P 90,000C. P311,500d. P 54,125P 4 ,500

Name: During the year, the company had the following budget at the beginnin
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Description: During the year, the company had the following budget at the beginning of the year:manufacturing its products. The company employs the job order costing system and appliesMagnificent Corp. has two departments, Forming and Finishing Departmentsd. P90

Job order costing is a system of costing under which all indirect costs or overheads are allocated…

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Forming and Finishing Departments manufacturing its products. The company employs the job order costing system and applies For numbers 4 and 5 Magnificent Corp. has two departments, overhead as percentage of direct labor. During the year, the company had the following budget at the beginning of the Forming P2,450,000 1,250,000 625,000 Finishing P1,500,000 P 600,000 60,000 Raw materials Direct labor Factory Overhead Job orders 050 and 051 had the following data for its prime cost. Raw materials Direct labor Job Order 050 P 375,000 188,500 Job Order 051 P 250,000 90,000 4. What is the total cost of each job order? Job order 051 Job order 050 a. Р675,000 b, P657,750 c. P675,500 d. P617,625 P349,000 P349,000 P381.000 P344,500 5. How much is the total overhead applied? Job order 050 Job order 051 P 9,000 P 9,000 P 90,000 P 4,500 a. P311,500 b. P 94,250 с. Р311,500 d. P 54,125

Forming and Finishing Departments manufacturing its products. The company employs the job order costing system and applies For numbers 4 and 5 Magnificent Corp. has two departments, overhead as percentage of direct labor. During the year, the company had the following budget at the beginning of the Forming P2,450,000 1,250,000 625,000 Finishing P1,500,000 P 600,000 60,000 Raw materials Direct labor Factory Overhead Job orders 050 and 051 had the following data for its prime cost. Raw materials Direct labor Job Order 050 P 375,000 188,500 Job Order 051 P 250,000 90,000 4. What is the total cost of each job order? Job order 051 Job order 050 a. Р675,000 b, P657,750 c. P675,500 d. P617,625 P349,000 P349,000 P381.000 P344,500 5. How much is the total overhead applied? Job order 050 Job order 051 P 9,000 P 9,000 P 90,000 P 4,500 a. P311,500 b. P 94,250 с. Р311,500 d. P 54,125

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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Heurion Company is a job-order costing firm that uses a plant-wide overhead rate based on direct labor hours. Estimated information for the year follows Overhead = S789,000 Direct labor hours 100,000 Data for the jobs worked in July follows: Jobs 745 743 $29,870.00 $55,215.00 $27,880.00 S Direct materials $25,500.00 $ 39,800.00 $14450.00 $13,600.00|S 8,420.00 Direct labor cost S61,300.00 $ 48,500.00 $28,700 00 $24,500.00 $21,300.00 3400 741 742 744 Balance, July 1 Direct labor hours 4000 1980 1600 1400 By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process. Required: Computel for the cost of work-in-process as of July 31.
Ottoson Fencing Inc. uses job order costing. The following data summarize the operations related to production for December, the first month of operations: Job 301 302 303 304 305 306 For general factory use 301 c. Factory overhead costs incurred on account, $5,400. Job Machine Hours 302 303 304 305 306 Total 27 35 29 70 39 a. Materials purchased on account, $29,050. b. Materials requisitioned and factory labor used: Materials 25 $2,870 3,690 225 2,300 8,510 5,000 3,770 1,030 Factory Labor $2,870 3,770 1,920 7,050 5,250 3,240 4,110 d. Depreciation of machinery and equipment, $2,000 e. The factory overhead rate is $52 per machine hour. Machine hours used: f. Jobs completed: 301, 302, 303 and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,310; Job 302, $11,120; Job 303, $14,320. Required: 1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on December 31. Record item gas 2 entries. 2. Post the…
Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of June: Debits to account: Balance, June 1 Direct materials Direct labor $5,000 $18,000 $12,300 Manufacturing overhead (applied to jobs as 125% of direct labor cost) $15,375 Total debits to account Credits to account: Transferred to Finished Goods Inventory account $50,675 $44,000 $6,675 Balance, June 30 Instructions a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of…
4. Care Corp. uses a job order costing sytem. It has three production departments, X, Y, and Z. The Manufacturing cost budget for May is presented in Table 1. For Job No. 0198 which was completed in May, direct materials cost was P75,000 and direct labor cost are presented in Table 2. The Corporation applies manufacturing overhead to each job order on the basis of direct labor cost, using departmental rates predetermined at the beginning og the year based on the manufacturing cost budget.What is the total manufacturing cost of Job No. 0198 which was completed in May?
The Prancing Pony utilizes a job-order costing system for accumulating their product costs. They had the following jobs during the month: Job A Job B Job C Job D Beginning balance 67,700 77,200 23,000 55,100 Direct materials used 92,800 67,000 60,500 75,900 Direct labor 47,400 80,300 81,100 83,900 Applied manufacturing overhead 97,000 10,300 14,900 81,500 Job A was unfinished at the end of the period. Job B and D were finished, and subsequently sold. Job C was finished, but had not yet been sold at the end of the period. The time ticket record revealed that Employee Underhill worked on Job A, while Employee Baggins worked on Job B, C, and D. Each job represents a small batch of 400 units. As the manager for The Prancing Pony, you previously set and communicated with employees that in order to meet budgetary goals, each unit should require no more than $150 of direct labor and $200 of direct materials. Using the information provided, what is the reported cost…
Billy Baroo Company uses a job order cost system. The following information was found in the Work-in-Process account for the month of July. Date Description Amount [DR. or (CR.)] July 1 Balance $16,500 July 31 Direct labor 47,000 July 31 Direct materials 70,000 July 31 Factory overhead 37,600 July 31 Transfer to finished goods (98,000 ) Billy Baroo applies overhead to production at a predetermined rate of 80% based on the direct labor cost. Job #23, the only job still in process at the end of July, has been charged with direct labor of $18,300. Direct material charged to Job #23 was: Multiple Choice $40,160. $41,760. $44,760. $47,160.
Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Debit Factory Wages Payable Debit Credit Credit 46,900 Work in Process Inventory Debit Credit 26,150 9,900 26,150 87,650 104,584 Required 1 172,220 1. Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) 2. Compute the amount that overhead is overapplied or underapplied. Required 2 127,900 Complete this question by entering your answers in the tabs below. Finished Goods Inventory Credit Debit 172,220 155,190 Required 1 Required 2 87,650 42, 150 Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied…
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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 233,600 $ 9,360 $ 80,000 $59,850 $ 236,500 Expected Activity 29,200 DLHS 234 orders 100 part types 1,710 boards 21,500 MHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A Product B Product C Product D 4,400 74 25 430 3,300 16,100 29 3,300 50 44 530 5,400 81 13 18 750 8,100 3,600 6,500 Using the…
Tillman Corporation uses a Job Order Costing system and has two production departments--Molding and Assembly. The company applies manufacturing overhead to production orders on the basis of direct labor costs. Separate departmental predetermined overhead rates are used. Budgeted manufacturing costs for the year are as follows: Molding Assembling Direct Materials P700,000 P100,000 Direct Labor 200,000 800,000 Manufacturing Overhead 600,000 400,000 The actual material and labor costs charged to Job 432 were as follows: Direct Materials 25,000 Direct Labor Molding 8,000 Assembling 12,000 20,000 Tillman applies manufacturing overhead to production orders on the basis of direct labor cost using a departmental rate predetermined at the beginning of the year based on the annual budget. The total manufacturing cost associated with Job 432 should be?
Practice Example 1: White Company has two departments, Cutting and Finishing. The company uses a job-order cost system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Manufacturing overhead cost Direct labour cost Cutting 6,000 48,000 Rs360,000 Rs50,000 Finishing 30,000 5,000 Rs486,000 Rs270,000 Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following: Cutting 6 80 Rs500 Rs70 Department Finishing 20 4 Rs310 Rs150 Direct labor-hours Machine-hours Materials requisitioned Direct labor cost Compute the total overhead cost applied to Job…