Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projectsusing predetermined overhead rates. In the Installation Division, overhead is applied on the basis ofdirect labour hours, and in the Disposal Division, overhead is applied on the basis of debris tonnagehauled to the landfill. At the beginning of the current year, management made the following budgetestimates to determine overhead application rates.Annual EstimatesDirect laborManufacturing overheadDirect labor hoursTons of Debris1Job no. 652 (8,348 square-feet):Cost of material used on jobDirect labor costDirect labor hoursTons of debrisInstallation Disposal$750,000 $120,000$100,000 $36,00025,00010,000300Job #652 for Bees Grocery measured 8,348 square-feet. The job was started and completed in May.Information pertaining to this project is provided below.Installation Disposal$30,000 $1,000$7,800$1,1002500807c. Prepare the journal entries required to record the sale (on account) of job #652 to BeesGrocery. The total sales price was $60,000. (^

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Description: Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projectsusing predetermined overhead rates. In the Installation Division, overhead is applied on the basis ofdirect labour hours, and in the Disposal Division

The job order costing is the costing method which is used to determine the total cost associated…

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Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects using predetermined overhead rates. In the Installation Division, overhead is applied on the basis of direct labour hours, and in the Disposal Division, overhead is applied on the basis of debris tonnage hauled to the landfill. At the beginning of the current year, management made the following budget estimates to determine overhead application rates. Annual Estimates Direct labor Manufacturing overhead Direct labor hours Tons of Debris Installation Disposal $750,000 $120,000 $100,000 $36,000 25,000 10,000 300 Job #652 for Bees Grocery measured 8,348 square-feet. The job was started and completed in May. Information pertaining to this project is provided below. Job no. 652 (8,348 square-feet): Cost of material used on job Direct labor cost Direct labor hours Tons of debris Installation Disposal $30,000 $7,800 250 0 $1,000 $1,100 80 7 c. Prepare the journal entries required to record the sale (on account) of job #652 to Bees Grocery. The total sales price was $60,000. (^

Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects using predetermined overhead rates. In the Installation Division, overhead is applied on the basis of direct labour hours, and in the Disposal Division, overhead is applied on the basis of debris tonnage hauled to the landfill. At the beginning of the current year, management made the following budget estimates to determine overhead application rates. Annual Estimates Direct labor Manufacturing overhead Direct labor hours Tons of Debris Installation Disposal $750,000 $120,000 $100,000 $36,000 25,000 10,000 300 Job #652 for Bees Grocery measured 8,348 square-feet. The job was started and completed in May. Information pertaining to this project is provided below. Job no. 652 (8,348 square-feet): Cost of material used on job Direct labor cost Direct labor hours Tons of debris Installation Disposal $30,000 $7,800 250 0 $1,000 $1,100 80 7 c. Prepare the journal entries required to record the sale (on account) of job #652 to Bees Grocery. The total sales price was $60,000. (^

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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