Problem 4. Evergreen Manufacturing Company started 1,500 units in process on joborder #2003. The prime cost placed in process consisted of P300,000 and P180,00 formaterials and direct labor, respectively, and a predetermined rate was used to chargefactory overhead to production at 133-1/3% of direct labor cost. Upon completion of thejob order, 100 units were rejected for failure to meet strict quality control requirements.The company bills customers at 50% above cost but sells rejected units at only 1/3 ofproduction cost.REQUIRED: Give the entries to record the following:1) The cost of production2) To record the completion of the job assuming the rejected units is ascribed to acompany failure which is normal.

Job-order costing is one of the costing method used by the cost accountants and management of the…

Answered: Problem 4. Evergreen Manufacturing…

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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6 Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 44,000 direct labor-hours, total fixed manufacturing overhead cost of $369,600, and a variable manufacturing overhead rate of $4.00 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours Direct materials Direct labor cost. 300 $ 600 $7,000 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.) Selling price per unit
Guess Apparel completed 3, 600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below: Direct materials P200Direct Labor 180Factory overhead, included P10 allowance for spoilage 180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at 40% of production costs. The good units were delivered and billed the customer at 120% above cost.If the spoilage is common to all jobs, the amount billed to the customer is:
4. As of Sept. 1, 2018, there are two(2) jobs in process with accumulated prime costs as follows: 359 J ob No. 71 Job No. 72 Number of units 6,000 5,000 Direct materials P5,000 P4,000 Direct labor P2,000 P1,800 Job Order No. 72 is special because of its strict specifications. Factory overhead is charged at PO.40 per unit and includes a PO.03 provision for defective work. The prime cost incurred in Sept., 2018 are as follows: Job No. 71 Job No. 76 2,000 Job No. 72 Job No. 75 Number of units 3,000 Direct materials P3,000 P4,500 P2,500 P5,000 3,000 Direct labor 2,000 2,000 1,500 Some units are found to have imperfections and the corresponding prime costs incurred in reprocessing are as follows: Job No. 71 Job No. 72 Job No. 75 Number of units with imperfections 50 80 40 Prime costs in reprocessing: Direct materials P500 P1,500 P300 Direct labor 200 800 100 Jobs No. 71, 72, and 75 were completed. The unit cost in each completed job must be: Job No. 71 Job No. 72 Job No. 75 a. P2.40 P3.60…
ABC Company’s Job 123 for the manufacture of 2,000 bags was completed during June 2022 at the following unit costs:· Direct Materials, P20· Direct Labor, P18· Overhead (including allowance of P1 for spoiled work), P18 Final inspection of Job 123 disclosed 100 spoiled bags which were sold to an online store for P1,985. Determine the total cost of completed units.
Kindly answer and explain the 2 questions.
44. SHINING Apparel completed 3, 600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below: Direct materials P200Direct Labor 180Factory overhead, included P10 allowance for spoilage 180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at 40% of production costs. The good units were delivered and billed the customer at 120% above cost.If the spoilage is common to all jobs, the amount billed to the customer is: a. • P1,680,000 b. • P2,100,000 c. • P2,016,000 d. • P3,696,000
2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below. Required 2A Required 2B Required 2C Required 2D Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.)
4
6. Darrow Company uses a predetemined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 10,000 direct labor-hours and incurred S80,000 of actual manufacturing overhead cost. If overhead was underapplied by $2.000, the predetermined overhead rate for the company for the year must have been: $7.80 $8.00 $8.20 $8.40
19. Darlene, Inc. manufactures item “B500” per the design and specification of its customers, and accordingly uses the job order costing system. In March 2022, it finished 10,000 pieces for a customer at a cost of P50.00 per unit for direct materials and P40.00 per unit for direct labor. Factory overhead is applied at 100% of direct labor cost. The production incurred 500 defective units due to an error in the specifications made by the customer and that had to be reworked at a direct labor cost of P10.00 per unit. If the customer is billed at 25% above cost, how much is the billing price?

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