+ 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!
+ 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!
1. Make a journal for the transaction above! 2. Make a job cost sheet for transaction No. 202!
Could you break it down into steps so I can learn it as well?
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!
Definition Definition Accounting technique that tracks the costs of materials, labor, and overhead for a particular job. The main purpose of job costing is to determine the profit or loss for each job. Repetitive work or poorly allocated employees can be addressed for the upcoming project through job costing.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
