The following data were taken from the records of Sunland Enterprises, a Canadian manufacturer that uses a normal job-order costingsystem:Job NumberDirect materialsDirect labourApplied overheadTotalJob NumberDirect materialsDirect labourDirect labour hours1.Additional information:2.3.4.During December, the company worked on jobs numbered 70 through 90 and incurred the following costs:5.6.7.8.1.Work in Process, December 170$2,1402.7580$2,860 $1,7902,8601,610$4,280 $7,3303.4.1,43071070$710$89060Direct materials purchasedSalariesFactory suppliesSales staff salaries75$1,070$1,790Utilities (factory)Administrative expenses120Production clerkSupervisorDepreciation (plant and equipment)710540$3,04080$1,430$3,570240Textbook and Media$8,930Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the companyestimated that total overhead costs for the year would be $178,560, and the total labour hours worked would be 14,880.1,7902,6202,9601,79010,9502,14011,310$42,490The balance in the Departmental Overhead Control account on December 1 was $190,410. Actual direct labour hours for theprevious 11 months (January through November) were 13,390.There were no jobs in finished goods on December 1.Expenses for December were as follows (not yet recorded in the books of account):Using the information given, calculate the following amounts:85$1,610 $1,790$2,680$7,140180The cost of ending work in process inventory90The cost of goods manufactured in DecemberThe company charges its customers 250% of total manufacturing cost.Cost of goods sold to December 1 was $42,490.The unadjusted gross margin for December480The company writes off all under-or over-applied overhead to Cost of Goods Sold at the end of the year.Jobs 70, 80, 85, and 90 were completed during December. Only Job 90 remained in finished goods on December 31.The predetermined overhead rate used to apply overhead to productsTotal$6,610$16,0701,080$$$$12per labourhour

The total cost of a job is the direct material , direct labour and allocated manufacturing overheads…

Answered: materials abour doverhead $2,140 1,430…

Business

Accounting

materials abour doverhead $2,140 1,430 710 $4,280 $2,860 2,860 1,610 $7,330 $1,790 710 540 $3,040

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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