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 93,000 and estimated factory overhead is $511,500. 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 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 ($7.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used $ 8,400 33,000 71,500 117,500 Required 11 Required 2 74,000 38,000 Required 3 5,100 4,400 71,250 14,400 6,900 7,900 2,700 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? 8,850 2,950 12,900 Complete this question by entering your answers in the tabs below. What is the total cost of Job A? (Ro not round intermediate calcula
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 93,000 and estimated factory overhead is $511,500. 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 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 ($7.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used $ 8,400 33,000 71,500 117,500 Required 11 Required 2 74,000 38,000 Required 3 5,100 4,400 71,250 14,400 6,900 7,900 2,700 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? 8,850 2,950 12,900 Complete this question by entering your answers in the tabs below. What is the total cost of Job A? (Ro not round intermediate calcula
Chapter1: Financial Statements And Business Decisions
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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.
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Transcribed Image Text: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 93,000 and estimated factory overhead is
$511,500. 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
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 ($7.50/hour)
Indirect labor
Supervisory salaries
Rental costs
Factory
Administrative offices
Total equipment depreciation costs
Factory
Administrative offices
Indirect materials used
Required:
1. What is the total cost of Job A?
Required 1
$ 8,400
33,000
71,500
117,500
Required 2
74,000
38,000
Required 3
5,100
4,400
71,250
14,400
6,900
2. What is the total factory overhead applied during September?
3. What is the overapplied or underapplied overhead for September?
7,900
2,700
Complete this question by entering your answers in the tabs below.
8,850
2,950
12,900
What is the total cost of Job A? (Do not round intermediate calculations.)
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