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+ MEONG Corporation plans to sell 14,000 boxes of cat food in each period. For the upcoming period, management plans to have 3,000 boxes as ending finished goods inventory and 5,000 boxes as beginning finished goods inventory. The fixed overhead budget for each period is $82,000, while variable overhead costs are set at $1.50 per box (FOH rate determination is based on 50,000 direct labor hours). The transactions that occur are: 1) Purchases on credit of direct raw materials amounting to $35,000 and indirect raw materials amounting to $8,000. 2) Demand for raw materials and direct labor used: Job No. Materials 202 $ 21,800 Labor Cost $ 21,600 Direct Labor Hours 5,500 205 17,600 61,700 15,000 208 31,900 85,750 10,500 General Factory Used 5,000 10,200 3) Factory insurance expense due by the end of the period $7,000 4) Factory utilities expense outstanding at the end of the period $18,000 5) Depreciation expense on factory machinery and equipment is $20,000. 6) The completed jobs are Jobs 202 and 208; while Job 205 is only 80% completed. Applied overhead is charged to work in process for each job. 7) Completed jobs are transferred to the finished goods warehouse. 8) Jobs No. 202 and 208 are shipped to customers and billed in the first month of the upcoming period. The selling price is set at a markup of 45% of the cost price. 9) Close over or underapplied FOH to COGS REQUESTED: 1. Make a journal for the above transactions! 2. Make a job cost sheet for transaction No. 202!

+ MEONG Corporation plans to sell 14,000 boxes of cat food in each period. For the upcoming period, management plans to have 3,000 boxes as ending finished goods inventory and 5,000 boxes as beginning finished goods inventory. The fixed overhead budget for each period is $82,000, while variable overhead costs are set at $1.50 per box (FOH rate determination is based on 50,000 direct labor hours). The transactions that occur are: 1) Purchases on credit of direct raw materials amounting to $35,000 and indirect raw materials amounting to $8,000. 2) Demand for raw materials and direct labor used: Job No. Materials 202 $ 21,800 Labor Cost $ 21,600 Direct Labor Hours 5,500 205 17,600 61,700 15,000 208 31,900 85,750 10,500 General Factory Used 5,000 10,200 3) Factory insurance expense due by the end of the period $7,000 4) Factory utilities expense outstanding at the end of the period $18,000 5) Depreciation expense on factory machinery and equipment is $20,000. 6) The completed jobs are Jobs 202 and 208; while Job 205 is only 80% completed. Applied overhead is charged to work in process for each job. 7) Completed jobs are transferred to the finished goods warehouse. 8) Jobs No. 202 and 208 are shipped to customers and billed in the first month of the upcoming period. The selling price is set at a markup of 45% of the cost price. 9) Close over or underapplied FOH to COGS REQUESTED: 1. Make a journal for the above transactions! 2. Make a job cost sheet for transaction No. 202!

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 27P: Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming...
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1. Make a journal for the transaction above!
2. Make a job cost sheet for transaction No. 202!

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+ MEONG Corporation plans to sell 14,000 boxes of cat food in each period. For the upcoming period, management plans to have 3,000 boxes as ending finished goods inventory and 5,000 boxes as beginning finished goods inventory. The fixed overhead budget for each period is $82,000, while variable overhead costs are set at $1.50 per box (FOH rate determination is based on 50,000 direct labor hours). The transactions that occur are: 1) Purchases on credit of direct raw materials amounting to $35,000 and indirect raw materials amounting to $8,000. 2) Demand for raw materials and direct labor used: Job No. Materials 202 $ 21,800 Labor Cost $ 21,600 Direct Labor Hours 5,500 205 17,600 61,700 15,000 208 31,900 85,750 10,500 General Factory Used 5,000 10,200 3) Factory insurance expense due by the end of the period $7,000 4) Factory utilities expense outstanding at the end of the period $18,000 5) Depreciation expense on factory machinery and equipment is $20,000. 6) The completed jobs are Jobs 202 and 208; while Job 205 is only 80% completed. Applied overhead is charged to work in process for each job. 7) Completed jobs are transferred to the finished goods warehouse. 8) Jobs No. 202 and 208 are shipped to customers and billed in the first month of the upcoming period. The selling price is set at a markup of 45% of the cost price. 9) Close over or underapplied FOH to COGS REQUESTED: 1. Make a journal for the above transactions! 2. Make a job cost sheet for transaction No. 202!
Transcribed Image Text:+ MEONG Corporation plans to sell 14,000 boxes of cat food in each period. For the upcoming period, management plans to have 3,000 boxes as ending finished goods inventory and 5,000 boxes as beginning finished goods inventory. The fixed overhead budget for each period is $82,000, while variable overhead costs are set at $1.50 per box (FOH rate determination is based on 50,000 direct labor hours). The transactions that occur are: 1) Purchases on credit of direct raw materials amounting to $35,000 and indirect raw materials amounting to $8,000. 2) Demand for raw materials and direct labor used: Job No. Materials 202 $ 21,800 Labor Cost $ 21,600 Direct Labor Hours 5,500 205 17,600 61,700 15,000 208 31,900 85,750 10,500 General Factory Used 5,000 10,200 3) Factory insurance expense due by the end of the period $7,000 4) Factory utilities expense outstanding at the end of the period $18,000 5) Depreciation expense on factory machinery and equipment is $20,000. 6) The completed jobs are Jobs 202 and 208; while Job 205 is only 80% completed. Applied overhead is charged to work in process for each job. 7) Completed jobs are transferred to the finished goods warehouse. 8) Jobs No. 202 and 208 are shipped to customers and billed in the first month of the upcoming period. The selling price is set at a markup of 45% of the cost price. 9) Close over or underapplied FOH to COGS REQUESTED: 1. Make a journal for the above transactions! 2. Make a job cost sheet for transaction No. 202!
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