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Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow:   Job 39 Job 40 Job 41 Job 42 Beginning balance $24,300 $34,400 $16,600 $700 Materials requisitioned 18,200 22,400 9,100 14,100 Direct labor cost 9,300 19,500 3,750 5,000 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?   What would happen to the balance of Cost of Goods Sold?

Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow:   Job 39 Job 40 Job 41 Job 42 Beginning balance $24,300 $34,400 $16,600 $700 Materials requisitioned 18,200 22,400 9,100 14,100 Direct labor cost 9,300 19,500 3,750 5,000 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?   What would happen to the balance of Cost of Goods Sold?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  1. Job Costs Using a Plantwide Overhead Rate

    Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow:

      Job 39 Job 40 Job 41 Job 42
    Beginning balance $24,300 $34,400 $16,600 $700
    Materials requisitioned 18,200 22,400 9,100 14,100
    Direct labor cost 9,300 19,500 3,750 5,000

    Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month.

    Required:

    1. Calculate the balance in Work in Process as of June 30.

    2. Calculate the balance in Finished Goods as of June 30.

    3. Calculate the cost of goods sold for June.

    4. Calculate the price charged for Job 39. Round your answer to two decimal places.

    5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods?

     

    What would happen to the balance of Cost of Goods Sold?

     
     
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Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 41 $16,600 9,100 3,750 Beginning balance Materials requisitioned Direct labor cost 53,625 Job 39 $24,300 18,200 9,300 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. $86,050 Job 40 $34,400 22,400 19,500 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 56,450 Job 42 $700 14,100 5,000 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?
Transcribed Image Text:Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 41 $16,600 9,100 3,750 Beginning balance Materials requisitioned Direct labor cost 53,625 Job 39 $24,300 18,200 9,300 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. $86,050 Job 40 $34,400 22,400 19,500 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 56,450 Job 42 $700 14,100 5,000 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?
Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 41 $16,600 9,100 3,750 Beginning balance Materials requisitioned Direct labor cost 53,625 Job 39 $24,300 18,200 9,300 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. $86,050 Job 40 $34,400 22,400 19,500 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 56,450 Job 42 $700 14,100 5,000 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?
Transcribed Image Text:Job Costs Using a Plantwide Overhead Rate Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow: Job 41 $16,600 9,100 3,750 Beginning balance Materials requisitioned Direct labor cost 53,625 Job 39 $24,300 18,200 9,300 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 115 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until the customer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month. Required: 1. Calculate the balance in Work in Process as of June 30. $86,050 Job 40 $34,400 22,400 19,500 2. Calculate the balance in Finished Goods as of June 30. 3. Calculate the cost of goods sold for June. 56,450 Job 42 $700 14,100 5,000 4. Calculate the price charged for Job 39. Round your answer to two decimal places. 5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balance in Finished Goods? What would happen to the balance of Cost of Goods Sold?
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