Job #2365 incurred the following during production: Direct Materials: $25,000 Manufacturing Labor: 45 hrs. Packaging materials: $1,000 Packing and shipping labor: 5 hrs. The following data is also available for the company: Overhead costs for the period $3,000 Indirect Labor (machine maintenance) 20 hrs. The company incurs costs at the following rates:

Job #2365 incurred the following during production: Direct Materials: $25,000 Manufacturing Labor: 45 hrs. Packaging materials: $1,000 Packing and shipping labor: 5 hrs. The following data is also available for the company: Overhead costs for the period $3,000 Indirect Labor (machine maintenance) 20 hrs. The company incurs costs at the following rates:

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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Show Me How Applying factory overhead Keenan Company estimates that total factory overhead costs will be $322,000 for the year. Direct labor hours are estimated to be 23,000. a. For Keenan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. $ per direct labor hour b. During May, Keenan Company accumulated 720 hours of direct labor costs on Job 200 and 510 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. $ c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate. If an amount box does not require an entry, leave it blank.
Saddle Inc. applies overhead on the basis of direct labor costs. The company estimates annual overhead costs will be $760,000 and annual direct labor costs will be $950,000. During February, Saddle works on two jobs: A16 and B17. Summary data concerning these jobs are as follows:Manufacturing Costs Incurred: Purchased $54,000 of raw materials on account. Factory labor $76,000, plus $4,000 employer payroll taxes. Manufacturing overhead exclusive of indirect materials and indirect labor $59,800. Assignment of Costs: Direct Materials: Job A16: $27,000, Job B17: $21,000 $3,000 Indirect Materials: $3000 Direct Labor: Job A16: $52,000, Job B17: $26,000 $2,000 Indirect labor: $2000 The company completed Job A16 and sold it on account for $150,000. Job B17 was only…
The records at Smith and Jones Company show that Job 110 is charged with $11,000 of direct materials and $12,500 of direct labor. Smith and Jones Company allocate manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110?
At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information: Job Job 765 Job 766 Job 765 $ Job 766 $ Direct Materials $8,680 13,338 Job 765 $ Job 766 $ Direct Labor $2,604 4,212 Machine Hours Job 765 produced 186 units, and Job 766 consisted of 234 units. Assuming that factory overhead is applied using machine hours at a rate of $131 per hour. a. Determine the balance on each job cost sheet. 31 78 b. Determine the cost per unit for each job at the end of April. Round your answers to the nearest cent.
DEF Co. uses a job costing system. Normal costing is used and factory overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur P1,007,500 of factory overhead costs and use 77,500 machine-hours. DEF Co. recorded the following events during the month of April: a) Purchased 180,000 pounds of materials on account; the cost was P2.50 per pound. b) Issued120,000 pounds of materials to production. Of this amount, 15,000 pounds were used as indirect materials. c) Direct labor costs incurred was P240,000 and indirect labor costs incurred were P50,000. d) Depreciation on equipment for the month amounted to P15,700. e) Insurance costs were P3,500 for the manufacturing property f) Paid 8,500 cash for utilities and other miscellaneous items for the manufacturing plant. g) Ob E5 costing P6,500 and Job F4 costing P77,00 were completed during the month and transferred to the Finished Goods account. h) Job F4 was shipped to the…
Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year: Direct materials used $2,300 Direct labor costs $700 Actual manufacturing overhead rate per direct labor hour $17.15 Predetermined manufacturing overhead rate per direct labor hour $18.30 Direct labor hours used in Job 903 35 Direct labor rate per hour $20 What is the total cost of Job 903? $3,000 $3,640.50 $24,500 $3,020
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The Polaris Company uses a job-order costing system. The following transsctions occurred in October: a. Row materials purchased on account, $210,000. b. Row materials used in production, $190,000 ($178,000 direct materials and $12,000 indirect materials). c. Accrued direct labor cost of $90,000 and indirect labor cost of $110,000. d. Depreciation recorded on factory equipment, $40,000. e. Other manufacturing overhead costs accrued during October, $70,000. f. The company applies manufacturing overhesd cost to production using a predetermined rate of $8 per machine-hour. A total of 30,000 machine-hours were used in October. g. Jobs costing $520,000 sccording to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $480,000 to complete sccording to their job cost sheets were shipped to customers during the month. These jobs were sold on sccount at 25% above cost. Required: 1. Prepare journal entries to record the transactions given…
K company production was working on Job 1 and Job 2 during the month. Of the $790 in direct materials, $380 in materials was requested for Job 1. Direct labor cost, including payroll taxes, are $23 per hour, and employees worked 17 hours on Job 1 and 30 hours on Job 2. Overhead is applied at the rate of $20 per direct labor hours. Prepare job order cost sheets for each job. Job 1 Hours Total Cost Direct materials $fill in the blank 1 Direct labor fill in the blank 2 fill in the blank 3 Manufacturing overhead fill in the blank 4 fill in the blank 5 Total cost $fill in the blank 6 Job 2 Hours Total Cost Direct materials $fill in the blank 7 Direct labor fill in the blank 8 fill in the blank 9 Manufacturing overhead fill in the blank 10 fill in the blank 11 Total cost $fill in the blank 12
Ibra manufacturing uses machine hours as an activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was OMR 2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling OMR 2,100,000. The estimated machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? Select one: a. OMR 102,500 O b. OMR 105,000 Oc. None of the answers are correct O d. OMR 2,100 e. OMR 2,050