Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31
Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are
different from the names used in manufacturing companies. The following costs were recorded in January:
231,100
76,600
128,688
$389,300
Cost of subcontracted work (comparable to direct materials)
Direct staff costs (comparable to direct labor)
Studio overhead (comparable to manufacturing overhead cost applied)
Cost of work completed (comparable to cost of goods manufactured)
There were no beginning inventories in January.
At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs.
Required:
1. Compute the predetermined overhead rate that was used during January.
Predetermined overhead
rate
%
2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred
less ending work in process inventory.) (Round your intermediate calculations to whole number.)
Job Cost Sheet
Krimmer Corporation Headquarters Project
Costs of subcontracted work
Direct staff costs
Studio overhead
Total cost to January 31
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