4-33Job Costing Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct laborhours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 95,000 and estimated factory overheadis $617,500. The following information is for September of the current year. Job A was completed during September, and Job B wasstarted but not finished.September 1, InventoriesMaterials Inventory$ 7,500Work-in-Process Inventory (All Job A)31,200Finished Goods Inventory67,000Material purchases104,000Direct materials requisitionedJob A65,000Job B33,500Direct labor hoursJob A4,200Job B3,500Labor costs incurredDirect labor ($8.50/hour)$65,450Indirect labor13,500Supervisory salaries6,000Rental costsFactory7,000Administrative offices1,800Total equipment depreciation costsFactory7,500Administrative offices1,600Indirect materials used12,000Required1. What is the total cost of Job A?2. What is the total factory overhead applied during September?3. What is the overapplied or underapplied overhead for September?

The overhead is applied to production on the basis of predetermined overhead rate.

Answered: osting Johnson Inc. is a job-order…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Applying factory overhead Instructions Chart of Accounts Factory Overhead Journal Instructions Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,0000. Required: a. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. b. During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. c. Prepare the journal entry on May 31 to apply factory overhead to both jobs in May according to the predetermined overhead rate, Refer to the chart accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal…
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Subject: accounting
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