On April 1, two jobs were in process at Hartwell Contracting. Details of the jobs follow: Job Number HC-34 HC-37 Direct Materials $ 4,560 3,460 Direct Labor $ 1,960 6,160 The Materials Inventory account on April 1 totaled $8,260. Materials purchased during the month totaled $18,000. Indirect material $1,900 were issued from materials inventory. On April 1, finished goods inventory consisted of two jobs: HC-32, costing $7,140, and 35, with a cost of $3,960. Costs for both jobs were transferred to Cost of Services Billed during the month. Also during April, Jobs HC-34 and HC-37 were completed. Completing Job HC-34 required an additional $5,260 in direct labor. Th completion costs for Job HC-37 included $3,560 in direct materials and $10,860 in direct labor. Hartwell Contracting used a total of $9,260 of direct materials (excluding the $1,900 indirect materials) during the month and $25, in total direct labor costs. Overhead has been estimated at 75 percent of direct labor costs, and this relation has been the same fo past few years. Required: Compute the costs of Jobs HC-34 and HC-37 and the balances in the April 30 inventory accounts. Cost to complete HC-34 Cost to complete HC-37 Balance of Materials Inventory as of April 30 Balance of Work-in-Process Inventory as of April 30 Balance of Finished Goods Inventory as of April 30 $ S S (A S 8,575 15,575 14,560 23,550 50,400
On April 1, two jobs were in process at Hartwell Contracting. Details of the jobs follow: Job Number HC-34 HC-37 Direct Materials $ 4,560 3,460 Direct Labor $ 1,960 6,160 The Materials Inventory account on April 1 totaled $8,260. Materials purchased during the month totaled $18,000. Indirect material $1,900 were issued from materials inventory. On April 1, finished goods inventory consisted of two jobs: HC-32, costing $7,140, and 35, with a cost of $3,960. Costs for both jobs were transferred to Cost of Services Billed during the month. Also during April, Jobs HC-34 and HC-37 were completed. Completing Job HC-34 required an additional $5,260 in direct labor. Th completion costs for Job HC-37 included $3,560 in direct materials and $10,860 in direct labor. Hartwell Contracting used a total of $9,260 of direct materials (excluding the $1,900 indirect materials) during the month and $25, in total direct labor costs. Overhead has been estimated at 75 percent of direct labor costs, and this relation has been the same fo past few years. Required: Compute the costs of Jobs HC-34 and HC-37 and the balances in the April 30 inventory accounts. Cost to complete HC-34 Cost to complete HC-37 Balance of Materials Inventory as of April 30 Balance of Work-in-Process Inventory as of April 30 Balance of Finished Goods Inventory as of April 30 $ S S (A S 8,575 15,575 14,560 23,550 50,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:On April 1, two jobs were in process at Hartwell Contracting. Details of the jobs follow:
Job Number
HC-34
HC-37
Direct
Materials
$4,560
3,460
Direct Labor
$ 1,960
6,160
The Materials Inventory account on April 1 totaled $8,260. Materials purchased during the month totaled $18,000. Indirect materials of
$1,900 were issued from materials inventory. On April 1, finished goods inventory consisted of two jobs: HC-32, costing $7,140, and HC-
35, with a cost of $3,960. Costs for both jobs were transferred to Cost of Services Billed during the month.
Also during April, Jobs HC-34 and HC-37 were completed. Completing Job HC-34 required an additional $5,260 in direct labor. The
completion costs for Job HC-37 included $3,560 in direct materials and $10,860 in direct labor.
Hartwell Contracting used a total of $9,260 of direct materials (excluding the $1,900 indirect materials) during the month and $25,960
in total direct labor costs. Overhead has been estimated at 75 percent of direct labor costs, and this relation has been the same for the
past few years.
Required:
Compute the costs of Jobs HC-34 and HC-37 and the balances in the April 30 inventory accounts.
Cost to complete HC-34
Cost to complete HC-37
Balance of Materials Inventory as of April 30
Balance of Work-in-Process Inventory as of April 30
Balance of Finished Goods Inventory as of April 30
$
$
$
$
$
8,575
15,575
14,560
23,550
50,400
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