larco Company shows the following costs for three jobsorked on in April.Balances on March 31Direct materials used (in March)Direct labor used (in March)Overhead applied (March).Costs during AprilDirect materials used.Direct labor usedOverhead appliedStatus on April 30dditional InformationRaw Materials Inventory has a March 31 balance of85,200.Job 306$ 34,20025,20015,2005A148,00090,200?Finished(sold)Raw materials purchases in April are $513,000, and totalactory payroll cost in April is $376,000.Actual overhead costs incurred in April are indirectmaterials, $53,250; indirect labor, $26,250; factory rent,35,250; factory utilities, $22,250; and factory equipmentepreciation, $54,250.Req 5Biterialsprocess1 goods'entoriesJob 307$ 40,20023, 20014,200Predetermined overhead rate is 50% of direct labor cost.. Job 306 is sold for $648,000 cash in April.Inventories233,000163,000?Finished(unsold)Compute gross profit for April.how how the three inventory accounts are reported onoril 30 balance sheet.mplete this question by entering your answerslow.Job 308$ 113,000118,000?In processw how the three inventory accounts are reported orance sheet. [The following information applies to the questionsdisplayed below.]Marco Company shows the following costs for three jobsworked on in April.Balances on March 31Direct materials used (in March)Direct labor used (in March)Overhead applied (March)Costs during AprilDirect materials usedDirect labor usedOverhead appliedStatus on April 30Job 306Additional Informationa. Raw Materials Inventory has a March 31 balance of$85,200.$ 34,20025,20015, 200148,00090,200?Req 5AFinished(sold)b. Raw materials purchases in April are $513,000, and totalfactory payroll cost in April is $376,000.c. Actual overhead costs incurred in April are indirectmaterials, $53,250; indirect labor, $26,250; factory rent,$35,250; factory utilities, $22,250; and factory equipmentdepreciation, $54,250.Req 5BRaw materialsWork processFinished goodsTotal inventoriesJob 307$ 40,20023,20014, 200d. Predetermined overhead rate is 50% of direct labor cost.e. Job 306 is sold for $648,000 cash in April.Inventories233,000163,000?Finished(unsold)5-a. Compute gross profit for April.5-b. Show how the three inventory accounts are reported onthe April 30 balance sheet.Complete this question by entering your ansbelow.InShow how the three inventory accounts are reportbalance sheet.

Name: larco Company shows the following costs for three jobsorked on in Apr
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Description: larco Company shows the following costs for three jobsorked on in April.Balances on March 31Direct materials used (in March)Direct labor used (in March)Overhead applied (March).Costs during AprilDirect materials used.Direct labor usedOverhead applie

The inventory of business includes raw materials, unsold finished goods and work in process. The…

Business

Accounting

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 Job 306 $ 34,200 25,200 15,200 148,000 90,200 ? Finished (sold) Job 307 $ 40,200 23,200 14, 200 Job 308 233,000 $ 113,000 118,000 ? 163,000 ? In process Finished (unsold)

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 Job 306 $ 34,200 25,200 15,200 148,000 90,200 ? Finished (sold) Job 307 $ 40,200 23,200 14, 200 Job 308 233,000 $ 113,000 118,000 ? 163,000 ? In process Finished (unsold)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PB: The following data summarize the operations during the year. Prepare a journal entry for each...

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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.

Topic Video

Question

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 inventory accounts are reported on
oril 30 balance sheet.
mplete this question by entering your answers
low.
Job 308
$ 113,000
118,000
?
In process
w how the three inventory accounts are reported or
ance sheet.

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During August, Skyler Company worked on three jobs. Data relating to these three jobs follow: Overhead is assigned on the basis of direct labor hours at a rate of 2.30 per direct labor hour. During August, Jobs 39 and 40 were completed and transferred to Finished Goods Inventory. Job 40 was sold by the end of the month. Job 41 was the only unfinished job at the end of the month. Required: 1. Calculate the per-unit cost of Jobs 39 and 40. (Round unit costs to nearest cent.) 2. Compute the ending balance in the work-in-process inventory account. 3. Prepare the journal entries reflecting the completion of Jobs 39 and 40 and the sale of Job 40. The selling price is 140 percent of cost.
Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
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Entries and schedules for unfinished jobs and completed jobs Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: A. Materials purchased on account, 45,000. B. Materials requisitioned and factory labor used: C. Factory overhead costs incurred on account, 1,800. D. Depreciation of machinery and equipment, 2,500. E. The factory overhead rate is 30 per machine hour. Machine hours used: F. Jobs completed: 301, 302, 303, and 305. G. Jobs were shipped and customers were billed as follows: Job 301, 8,500; Job 302, 16,150; Job 303, 13,400. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
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