Metro Tee Ltd. uses a job order costing system for producing personalized T-shirts. In November, the company incurred $18,500 in direct materials and $7,900 in direct labor costs to complete Job TRX5. MetroTee also paid $2,800 for advertising and $600 for a holiday party, which were unrelated to production. The job required 980 machine hours, and the overhead was applied at a rate of $32 per machine hour. If the job produced 9,200 T-shirts, what is the cost of goods sold per shirt? What is the correct cost of goods sold per shirt for Job TRX5? Zephyr Custom Wear uses a job order costing system to produce customized T-shirts. In August, the company incurred $14,600 in direct materials and $6,800 in direct labor to complete Job PSQ7. They also incurred a $2,500 charge for electricity and $900 for janitorial supplies, which are not included in the production process. The job required 720 machine hours, and the overhead was applied at a rate of $35 per machine hour. Job PSQ7 produced 8,100 shirts. What is the cost of goods sold per shirt? What is the correct cost of goods sold per shirt for Job PSQ7?

Metro Tee Ltd. uses a job order costing system for producing personalized T-shirts. In November, the company incurred $18,500 in direct materials and $7,900 in direct labor costs to complete Job TRX5. MetroTee also paid $2,800 for advertising and $600 for a holiday party, which were unrelated to production. The job required 980 machine hours, and the overhead was applied at a rate of $32 per machine hour. If the job produced 9,200 T-shirts, what is the cost of goods sold per shirt? What is the correct cost of goods sold per shirt for Job TRX5? Zephyr Custom Wear uses a job order costing system to produce customized T-shirts. In August, the company incurred $14,600 in direct materials and $6,800 in direct labor to complete Job PSQ7. They also incurred a $2,500 charge for electricity and $900 for janitorial supplies, which are not included in the production process. The job required 720 machine hours, and the overhead was applied at a rate of $35 per machine hour. Job PSQ7 produced 8,100 shirts. What is the cost of goods sold per shirt? What is the correct cost of goods sold per shirt for Job PSQ7?

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 22E: CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building...

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Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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San Mateo Optics, Inc., specializes in manufacturing lenses for large telescopes and cameras used in space exploration. As the specifications for the lenses are determined by the customer and vary considerably, the company uses a job-order costing system. Manufacturing overhead is applied to jobs on the basis of direct labor hours, utilizing the absorption- or full-costing method. San Mateos predetermined overhead rates for 20x1 and 20x2 were based on the following estimates. Jim Cimino, San Mateos controller, would like to use variable (direct) costing for internal reporting purposes as he believes statements prepared using variable costing are more appropriate for making product decisions. In order to explain the benefits of variable costing to the other members of San Mateos management team, Cimino plans to convert the companys income statement from absorption costing to variable costing. He has gathered the following information for this purpose, along with a copy of San Mateos 20x1 and 20x2 comparative income statement. San Mateo Optics, Inc. Comparative Income Statement For the Years 20x1 and 20x2 San Mateos actual manufacturing data for the two years are as follows: The companys actual inventory balances were as follows: For both years, all administrative expenses were fixed, while a portion of the selling expenses resulting from an 8 percent commission on net sales was variable. San Mateo reports any over-or underapplied overhead as an adjustment to the cost of goods sold. Required: 1. For the year ended December 31, 20x2, prepare the revised income statement for San Mateo Optics, Inc., utilizing the variable-costing method. Be sure to include the contribution margin on the revised income statement. 2. Describe two advantages of using variable costing rather than absorption costing. (CMA adapted)
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Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?
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CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building and site is different, requiring amounts and types of supplies and labor for each job. CleanCom estimated the following for the year: During the year, the following actual amounts were experienced: If CleanCom uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the cost of cleaning a construction site that takes 140 of direct materials and 21 direct labor hours? a. 455 b. 508 c. 648 d. 644
Metro Tee Ltd. uses a job order costing system for producing personalized T-shirts. In November, the company incurred $18,500 in direct materials and $7,900 in direct labor costs to complete Job TRX5. MetroTee also paid $2,800 for advertising and $600 for a holiday party, which were unrelated to production. The job required 980 machine hours, and the overhead was applied at a rate of $32 per machine hour. If the job produced 9,200 T-shirts, what is the cost of goods sold per shirt? What is the correct cost of goods sold per shirt for Job TRX5? Zephyr Custom Wear uses a job order costing system to produce customized T-shirts. In August, the company incurred $14,600 in direct materials and $6,800 in direct labor to complete Job PSQ7. They also incurred a $2,500 charge for electricity and $900 for janitorial supplies, which are not included in the production process. The job required 720 machine hours, and the overhead was applied at a rate of $35 per machine hour. Job PSQ7 produced 8,100…
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Kelly Sportswear manufactures a specialty line of T-shirts. The company uses a job- order costing system. During March, the following costs were incurred on Job 1052: Direct materials: $12,700 Direct labour: $3,700 Time left 0:39:02 Manufacturing overhead was applied at the rate of $21 per machine hour, and Job 1052 required 900 machine hours. In addition, selling and shipping costs of $6,000 were incurred. Job 1052 consisted of 5,000 shirts and was completed on March 24. The total cost of job 1052 transferred from Work in Process to Finished Goods on March 24 is: O a. $121,400 O b. $35,300 O c. $16,400 O d. $30,035