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 87,000 and estimated factory overhead is $609,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished.September 1, inventories Materials inventory$ 7,800Work-in-process inventory (All Job A)31,800Finished goods inventory68,500Material purchases108,500Direct materials requisitioned Job A68,000Job B35,000Direct labor hours Job A4,500Job B3,800Labor costs incurred Direct labor ($9.00 per hour)74,700Indirect labor13,800Supervisory salaries6,300Rental costs Factory7,300Administrative offices2,100Total equipment depreciation costs Factory7,950Administrative offices2,050Indirect materials used12,300

1. Predetermined Overhead Rate (POHR):The predetermined overhead rate is calculated based on…

Answered: Johnson Incorporated is a job-order…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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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 87,000 and estimated factory overhead is $609,000. 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	$ 7,800
Work-in-process inventory (All Job A)	31,800
Finished goods inventory	68,500
Material purchases	108,500
Direct materials requisitioned
Job A	68,000
Job B	35,000
Direct labor hours
Job A	4,500
Job B	3,800
Labor costs incurred
Direct labor ($9.00 per hour)	74,700
Indirect labor	13,800
Supervisory salaries	6,300
Rental costs
Factory	7,300
Administrative offices	2,100
Total equipment depreciation costs
Factory	7,950
Administrative offices	2,050
Indirect materials used	12,300