The following information is available for Lock Company, which produces custom securitysystems and uses a job order cost accounting system.InventoriesChapter 15Flows of Manufacturing WorksheetRaw MaterialsWork in ProcessFinished GoodsActivities and information for MarchRaw Materials purchases (paid in cash)Factory payroll (paid in cash)Factory overheadIndirect materialsIndirect laborOther overhead costs (paid in cash)November 30Sales (received in cash)Predetermined overhead rate based on direct labor costs1. Cost of direct materials used2. Cost of direct labor used43,00010,20063,0001. Raw materials purchases2. Direct materials usage3. Indirect materials usage4. Direct labor usageDecember 313. Cost of goods manufactured4. Cost of goods sold (ignore under or over applied overhead at this stage)5. Gross profit6. Overapplied or underapplied overhead52,00021,30035,60015,00080,000120,0001,400,000Part A: Compute the following amounts for the month of December. Show your work and labelso I can find it easily! START ON THE NEXT PAGE!210,000345,0008. Application of total factory overhead to Work in Process9. Allocate overapplied or underapplied overhead to Cost of Goods Sold.70%Part B:Use the work you have completed above to make journal entries for the following events inJanuary.5. Indirect labor usage6. Payment of factory payroll7. Purchase of other factory overhead for cash, excluding indirect materials and indirect labor

Managerial accounting involves the area of cost of goods sold inventory of raw material finished…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume a company started and completed numerous jobs during July-one of which was Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor- hours. The following additional information from the month of July is available for the company as a whole and for Jobs Z Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Estimated variable manufacturing overhead per direct labor-hour Estimated total machine-hours to be used Estimated total direct labor hours to be worked Job 2 Direct materials. Direct labor Machine-hours Direct labor-hours What is the total job cost for Job 2? Multiple Choice O $4,090 $4,110 Machining $ 950 $ 500 40 Assembly $1,000 $ 1,200 60 Machining $ 48,000 $ 1.50 12,000 Assembly $30,000 $ 2.00 10,000 Battery Status: I O Ơ O
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Shown below are the job cost-related accounts for the law firm of Johnson, Williams, and Morton and their manufacturing equivalents: Law Firm Accounts Supplies Salaries Payable Operating Overhead Work in Process Cost of Completed Work 2. Cost data for the month of March follow. 3. 1. Purchased supplies on account $1,620. 4. 5. 6. 1. 2. Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented whe the amount is entered. Do not indent manually.) 3. No. Account Titles and Explanation 4. 5. 6. Bal. 1. 2. Bal. Issued supplies of $1,600 (60% direct and 40% indirect). Time cards for the month indicated labour costs of $60,900 (80% direct and 20% indirect). Operating overhead costs incurred for cash totalled $41,600. Operating overhead is applied at a rate of 90% of direct labour cost. Work completed totalled $74,800. Supplies Accounts Payable Work in Process Operating Overhead Supplies Work in Process Operating…
The following are the job cost related accounts for the law firm of Cullumber Associates and their manufacturing equivalents: Law Firm Accounts Supplies Salaries and Wages Payable Operating Overhead Service Contracts in Process Cost of Completed Service Contracts Cost data for the month of March follow. 1. Purchased supplies on account $2,400. 2. 3. 4. 5. 6. (a) 1. Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually) 2. No. Account Titles and Explanation 3. 5. Issued supplies $1,680 (60% direct and 40% indirect). Assigned labor costs based on time cards for the month which indicated labor costs of $89,600 (80% direct and 20% indirect). 6. Operating overhead costs incurred for cash totaled $51,200. Operating overhead is applied at a rate of 90% of direct labor cost. Work completed totaled $96,000. Supplies Accounts Payable Manufacturing Firm Accounts Raw…
Entry for Jobs Completed; Cost of Unfinished Jobs The following account appears in the ledger prior to recognizing the jobs completed in January: Work in Process Balance, January 1 Direct materials Direct labor Factory overhead Jobs finished during January are summarized as follows: Job 210 $69,290 Job 224 $80,830 42,340 Job 230 142,420 Job 216 a. Journalize the entry to record the jobs completed. If an amount box does not require an entry, leave it blank. Finished Goods Work in Process $17,100 139,020 149,970 78,830 Feedback LA Check My Work a. Move the cost of completed jobs out of work in process and into finished goods. b. Determine the cost of the unfinished jobs at January 31.
2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making Department Work in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. Factory Overhead-Making Department Factory Overhead-Packing Department Feethack Credit Debit
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The chief cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $3,000,000 and total direct labor costs would be $2,400,000. During May, the actual direct labor cost totaled $198,400 and factory overhead cost incurred totaled $253,200. a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. Identify the activity base for this company. Remember to enter the number as a whole percent not in decimals. b. Journalize the entry to apply factory overhead to production for May. Work in Process-Blending Department Factory Overhead-Blending Department Feedback Recall how the predetermined factory overhead is applied to departments. How does the…
Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Job 301 Work in Process Job 302 17 13 13 Factory Overhead Wages Payable Landon Vincent Fahad Hamad Ivory Argo The direct labor rate earned per hour by the three employees is as follows: $24 19 22 10 18 Hours 17 Job 303 7 16 Process Improvement 9 5 2 Landon Vincent Fahad Hamad Ivory Argo The process improvement category includes training, quality improvement, and other indirect tasks. 5 a. Journalize the entry to record the factory labor costs for the week. If an amount box does not require an entry, leave it blank.
Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Balances on March 31 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April Direct materials used Direct labor used Overhead applied Status on April 30 a. Materials purchases (on credit). b. Direct materials used. View transaction list Journal entry worksheet
Louisiana Metals uses a job costing system. The company applies manufacturing overhead using a predetermined rate based on direct labor cost. The following debits (credits) appeared in the Work-in-Process Inventory for June. June 1 For the month For the month For the month For the month Balance Direct labor Direct materials Manufacturing overhead To finished goods Beginning inventory ??? $ 33,000 43, 200 19,800 (78,700) Job LM-12, the only job still in production at the end of June, has been charged $13,200 in direct materials cost and $12,400 in direct labor cost. Required: What was the beginning balance in Work-in-Process Inventory?
Entry for Jobs Completed; Cost of Unfinished Jobs The following account appears in the ledger prior to recognizing the jobs completed in March: Work in Process Line Item Description Amount Balance, March 1 $9,950 Direct materials 80,890 Direct labor 87,260 Factory overhead 45,870 Jobs finished during March are summarized as follows: Line Item Description Amount Job 459 $40,310 Job 510 24,640 Job 512 47,030 Job 523 82,870 Question Content Area a. Journalize the entry to record the jobs completed. If an amount box does not require an entry, leave it blank. blankAccountDebitCredit blank Question Content Area b. Determine the cost of the unfinished jobs at March 31. fill in the blank 1 of 1$

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