Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labohours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimatedfactory overhead is $660,000. The following information is for September of the current year. Job A was completed duringSeptember, and Job B was started but not finished.September 1, inventoriesMaterials inventoryWork-in-process inventory (All Job A)Finished goods inventoryMaterial purchasesDirect materials requisitionedJob AJob BDirect labor hoursJob AJob BLabor costs incurredDirect labor ($9.50/hour)Indirect laborSupervisory salariesRental costsFactoryAdministrative officesTotal equipment depreciation costsFactoryAdministrative officesIndirect materials used$ 7,90032,00069,000110,00069,00035,5004,6003,90080,75013,9006,4007,4002,2008,1002,20012,400Required:1. What is the total cost of Job A?2. What is the total factory overhead applied during September?3. What is the overapplied or underapplied overhead for September?Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3What is the total cost of Job A? (Do not round intermediate calculations.)Total cost< Required 1Required 2 >

Name: Johnson Incorporated is a job-order manufacturing company that uses a
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labohours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimatedfactory over

Business

Accounting

Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labo hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimated factory overhead is $660,000. 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 Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B $ 7,900 32,000 69,000 110,000 69,000 35,500 Direct labor hours Job A Job B Labor costs incurred 4,600 3,900 Direct labor ($9.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used 80,750 13,900 6,400 7,400 2,200 8,100 2,200 12,400 Required: 1. What is the total cost of Job A? 2. What is the total factory overhead applied during September? 3. What is the overapplied or underapplied overhead for September? Complete this question by entering your answers in the tabs below.

Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labo hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimated factory overhead is $660,000. 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 Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B $ 7,900 32,000 69,000 110,000 69,000 35,500 Direct labor hours Job A Job B Labor costs incurred 4,600 3,900 Direct labor ($9.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used 80,750 13,900 6,400 7,400 2,200 8,100 2,200 12,400 Required: 1. What is the total cost of Job A? 2. What is the total factory overhead applied during September? 3. What is the overapplied or underapplied overhead for September? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: JPE Corporation has a job order cost system. JPE applies overhead to production at a predetermined…

A: Job order cost system is the most appropriate system where the products are made on the demand of…

Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s…

A: Gross Margin in the business means Sales Revenue less cost of goods sold.

Q: Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct…

A: Compute work in process at end of April as shown below: Particulars Amount ($) Direct…

Q: Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct…

A: The work in process includes the cost of goods that are not finished yet. The finished goods…

Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's…

A: Direct material cost is the cost of raw material produced or purchased to produce the final…

Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…

A: Since we answer only three subparts, we will answer the first three subparts. Please resubmit the…

Q: Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct…

A: Cost of goods sold is the cost incurred on the making of the goods sold in the market. It is…

Q: List the letters (a) through (m) and indicate the amount pertaining to each letter. Raw Materials…

A: The stock held by an entity for the purpose of immediate sale or sale after further processing can…

Q: During August, Carrothers Company accumulated 590 hours of direct labor costs on Job 50 and 840…

A: Labor Cost: It refers to the expense incurred by the business by the workers involved in the…

Q: Jack and Jill Company has a job order cost system. The following debits/credits appeared in the…

A: Introduction:- Calculation of ending work-in-progress as follows:- Particulars Amount Beginning…

Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s…

A: Cost accounting is the one widely used by the cost accountant to determine the cost per unit of the…

Q: Louisiana Metals uses a job costing system. The company applies manufacturing overhead using a…

A: The work in process includes the direct costs incurred and overhead applied during the period. The…

Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s…

A: It is the income earned by an entity after incurring all the expenses. It is the net revenue left…

Q: Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the…

A: The overhead is applied to the production on the basis of pre-determined overhead rate. The overhead…

Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…

A: Solution A Journal is a company's official book in which all busines transactions are recorded in…

Q: Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

Q: Radziewicz Inc. uses a job-order costing in which any underapplied or overapplied overhead is closed…

A: Over (under) applied overhead = Manufacturing overhead cost applied - Manufacturing overhead cost…

Q: The Lofton manufacturing company uses job order costing system. The company uses machine hours to…

A: The direct costs incurred are debited to work in process account and indirect costs incurred are…

Q: During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: mpany shows the Balances on March 31 Direct materials used (in March) Direct labor used (in March)…

A: The statement of cost of goods manufactured includes the cost of goods that are finished during the…

Q: Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,950 of…

A: Cost of goods manufactured for May = $104,387Explanation:Dacosta Corporation Schedule of Cost of…

Q: Tolkien Company started its operation on November 1 with no beginning inventories. It started two…

A: The portion of factory overhead that doesn't change depending on production volume is called fixed…

Q: lenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct…

A: The work in process includes the cost of goods that are not finished yet. The finished goods…

Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s…

A: It is given that:company’s overhead rate - $14.25 Raw materials - $634000 Where, Raw materials use…

Q: Bernard Incorporated uses a job-order costing system and a predetermined overhead rate based on…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: Marco Company shows the following costs for three jobs worked on in April. Balances on March 31…

A: The gross profit is calculated as total sales revenue less cost of goods sold. The inventory is the…

Q: ptember 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods…

A: The total cost for a job is the cost incurred during the year plus cost incurred upto the current…

Q: Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct…

A: The work in process includes the cost of jobs that is not finished yet.The finished goods inventory…

Q: Bright Star Incorporated is a job-order manufacturer. The company uses predetermined overhead rate…

A: Introduction: Cost refers to the money spent to create and sell goods or services, or to acquire…

Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

Topic Video

Question

Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labo
hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimated
factory overhead is $660,000. 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
Work-in-process inventory (All Job A)
Finished goods inventory
Material purchases
Direct materials requisitioned
Job A
Job B
Direct labor hours
Job A
Job B
Labor costs incurred
Direct labor ($9.50/hour)
Indirect labor
Supervisory salaries
Rental costs
Factory
Administrative offices
Total equipment depreciation costs
Factory
Administrative offices
Indirect materials used
$ 7,900
32,000
69,000
110,000
69,000
35,500
4,600
3,900
80,750
13,900
6,400
7,400
2,200
8,100
2,200
12,400
Required:
1. What is the total cost of Job A?
2. What is the total factory overhead applied during September?
3. What is the overapplied or underapplied overhead for September?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
What is the total cost of Job A? (Do not round intermediate calculations.)
Total cost
< Required 1
Required 2 >

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Vishnu
3. What is the overapplied or underapplied overhead for September? Job Costing Johnson Inc. 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 95,000 and estimated factory overhead is $617,500. 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 $7,500.00 Work-in-process inventory (All Job A) 31,200.00 Finished goods inventory 67,000.00 Material purchases 104,000.00 Direct materials requisitioned Job A 65,000.00 Job B 33,500.00 Direct labor hours…
[The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March). Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 Job 306 $ 34,200 25,200 15,200 Additional Information a. Raw Materials Inventory has a March 31 balance of $85,200. 148,000 90,200 ? Finished (sold) Predetermined overhead rate Overhead applied 306 Job 307 b. Raw materials purchases in April are $513,000, and total factory payroll cost in April is $376,000. c. Actual overhead costs incurred in April are indirect materials, $53,250; indirect labor, $26,250; factory rent, $35,250; factory utilities, $22,250; and factory equipment depreciation, $54,250. $ 40,200 23, 200 14, 200 d. Predetermined overhead rate is 50% of direct labor cost. e. Job 306 is sold for $648,000 cash in April. 307 233,000…
Brunswick Home Remodelers (BHM) uses a job order cost system. The following debits (credits) appeared in Work - in - Process Inventory for April: Description Amount April 1 Balance $ 26,500 For the month Direct materials 157,000 For the month Direct labor 98,000 For the month Factory overhead 96,050 For the month To finished goods (295,000) BHM applies overhead to production at a predetermined rate of 65 percent based on direct materials cost. Job BH-7, which was started during April and is the only job still in process at the end of April, has been charged direct materials of $20,880. Required: How much direct labor cost was charged to Job BH-7 in April?
Can anyone do an example journal ledger for this problem?
The Fielder manufacturing company uses job order costing system. The company usesmachine hours to apply overhead cost to jobs. At the beginning of 2020, the companyestimated that 7,850 machine hours would be worked and $1,256,000 overhead cost wouldbe incurred during 2020.The following activities took place in the work in process inventory during February:WIP Inventory A/CFebruary 1 Bal. b/f 51,250Direct Materials Used 256,400Other transactions incurred: Indirect material issued to production was $38,000 Total manufacturing labour incurred in February was $345,000, 80% of this amountrepresented direct labour. Other manufacturing overhead costs incurred for February amounted to $340,750. Two jobs were completed with total costs of $324,000 & $240,000 respectively. Theywere sold on account at a margin of 40% on sales.Required:i) Compute Fielder’s predetermined manufacturing overhead rate for 2020.ii) State the journal entries necessary to record the above transactions in the…
larco Company shows the following costs for three jobs orked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March). Costs during April Direct materials used. Direct labor used Overhead applied Status on April 30 dditional Information Raw Materials Inventory has a March 31 balance of 85,200. Job 306 $ 34,200 25,200 15,200 5A 148,000 90,200 ? Finished (sold) Raw materials purchases in April are $513,000, and total actory payroll cost in April is $376,000. Actual overhead costs incurred in April are indirect materials, $53,250; indirect labor, $26,250; factory rent, 35,250; factory utilities, $22,250; and factory equipment epreciation, $54,250. Req 5B iterials process 1 goods 'entories Job 307 $ 40,200 23, 200 14,200 Predetermined overhead rate is 50% of direct labor cost. . Job 306 is sold for $648,000 cash in April. Inventories 233,000 163,000 ? Finished (unsold) Compute gross profit for April. how how the three…
The Fielder manufacturing company uses job order costing system. The company usesmachine hours to apply overhead cost to jobs. At the beginning of 2020, the companyestimated that 7,850 machine hours would be worked and $1,256,000 overhead cost wouldbe incurred during 2020.The following activities took place in the work in process inventory during February: WIP Inventory A/C Debit- February 1 Bal. b/f 51,250Debit - Direct Materials Used 256,400 Other transactions incurred:- Indirect material issued to production was $38,000- Total manufacturing labour incurred in February was $345,000, 80% of this amountrepresented direct labour.- Other manufacturing overhead costs incurred for February amounted to $340,750.- Two jobs were completed with total costs of $324,000 & $240,000 respectively. Theywere sold on account at a margin of 40% on sales Required:i) Compute Fielder’s predetermined manufacturing overhead rate for 2020 ii) Calculate the manufacturing overhead variance for Fielder and…
Letena Company had only one job in process on July 1. The job had been charged with $1,000 of direct materials, $3,302 of direct labor and $5,382 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.10 per labor-hour. During July, the following information on Letena's activities was recorded: Raw Materials: Beginning Balance $6,100 Purchased $70,000 Used in Production $69,600 Labor: Direct labor-hours worked during July 1,160 Direct labor cost incurred $15,400 Other information: Actual Manufacturing overhead incurred: $29,002 Work-in-Process Inventory, July 31: $13,200 Work-in-Process inventory on July 31 contains $2,921 of direct labor cost. The entry to dispose of the underapplied or overapplied manufacturing overhead for July would include a debit or credit of BLANK to the account Manufacturing Overhead.
Louisiana Metals uses a job costing system. The company applies manufacturing overhead using a predetermined rate based on direct labor cost. The following debits (credits) appeared in the Work-in-Process Inventory for June. June 1 For the month For the month For the month For the month Balance Direct labor Direct materials Manufacturing overhead To finished goods Beginning inventory ??? $ 33,000 43, 200 19,800 (78,700) Job LM-12, the only job still in production at the end of June, has been charged $13,200 in direct materials cost and $12,400 in direct labor cost. Required: What was the beginning balance in Work-in-Process Inventory?
Watkins Machinery Company uses a normal job costing system. The company has the following partial trial balance information for March, the last month of its fiscal year: Materials inventory (X, $17,250; Y, $11,500; Indirect materials, $28,750) $ 57,500 Work-in-process inventory (this is Job 101) 28,800 Finished goods inventory (this is Job 100) 48,000 These transactions relate to the month of March: Purchased direct materials and indirect materials with the following summary of receiving reports: Material X $ 57,500 Material Y 57,500 Indirect materials 28,750 Total $ 143,750 Issued direct materials and indirect materials with this summary of requisitions: Job 101 Job 102 Total Material X $ 28,750 $ 17,250 $ 46,000 Material Y 23,000 3,000 26,000 Subtotal $ 51,750 $ 20,250 $ 72,000 Indirect materials 46,000 Total $ 118,000 Factory labor incurred is summarized by these time tickets: Job 101 $ 57,600 Job 102 38,400…
PAMELA Manufacturing Company uses a job order cost system. The following debits (credits) appeared in Work in Process for the month of August: August 1 P40,500 Charges during August: Direct materials 243,000 Direct labor 162,000 Factory overhead 129,600 Debits to Finished goods 486,000 PAMELA Manufacturing applies overhead to production at a predetermined rate of 80% of direct labor cost Job XXX, which was started during August and is the only job still in process at the end of August, has been charged direct labor of P20,250. The amount of direct materials charged to Job XXX is Enter your answer