to the balance in Finished Goods? What would happen to the balance of Cost of Goodspayhe Job by JU30? What would happenSold?Cornerstone Exercise 5.3 Job Costs Using Activity-Based CostingHeitger Company is a job-order costing firm that uses activity-based costing to apply overheadto jobs. Heitger identified three overhead activities and related drivers. Budgeted informationfor the year is as follows:ActivityCostDriverAmount of DriverMaterials handlingEngineeringOther overhead$ 72,000165,000280,000Number of moves3,00010,000Number of change ordersDirect labor hours50,000Heitger worked on four jobs in July. Data are as follows:Job 13-43Job 13-44Job 13-45Job 13-46$ 2,300$12,700$32,000%24$9,800$2,400(continued)$Beginning balanceDirect materials$20,300$ 6,500$19,800$ 8,900$20,000$18,000Direct labor cost Frieling Company installs granite countertops in customers' homes. First, the customer choosesChapter 5 Product and Service Costing: Job-Order SystemJob 13-43.Job 13-44Job 13-45Job 13-46Number of moves445229Number of change orders30402020Direct labor hours9001,0001,600120By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still inprocess.Required:1.Calculate the activity rates for each of the three overhead activities.2. Prepare job-order cost sheets for each job showing all costs through July 31.3.Calculate the balance in Work in Process on July 31.4. Calculate the cost of goods sold for July.What if Job 13-46 required no engineering change orders? What is the new cost of Job5.13-46? How would the cost of the other jobs be affected?Cornerstone Exercise 5.4 Cost of Normal SpoilageFrieling Company installs granite countertops in customers' homes. First, the customer choosesshe particular granite slab, and then Frienng measures the countertop area at the quetBJECTIVE 6ERSTONE 5.4ond ingtolla it

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Heitger Company is a job-order costing firm that uses activity-based costing to apply overhea to jobs. Heitger identified three overhead activities and related drivers. Budgeted informatic for the year is as follows: Activity Cost Driver Amount of Driver Materials handling Engineering Other overhead $ 72,000 165,000 280,000 3,000 10,000 50,000 Number of moves Number of change orders Direct labor hours Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 $ 2,300 $12,700 $32,000 24 Beginning balance Direct materials $20,300 $ 6,500 $18,000 $19,800 $ 8,900 $20,000 $9,800 $2,400 (continuec Direct labor cost

Heitger Company is a job-order costing firm that uses activity-based costing to apply overhea to jobs. Heitger identified three overhead activities and related drivers. Budgeted informatic for the year is as follows: Activity Cost Driver Amount of Driver Materials handling Engineering Other overhead $ 72,000 165,000 280,000 3,000 10,000 50,000 Number of moves Number of change orders Direct labor hours Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 $ 2,300 $12,700 $32,000 24 Beginning balance Direct materials $20,300 $ 6,500 $18,000 $19,800 $ 8,900 $20,000 $9,800 $2,400 (continuec Direct labor cost

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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