JOB ORDER COSTING Whiscats Corporation plans to sell 14,000 boxes of cat food each period. For the coming period, management plans to have 3,000 boxes for finished goods ending inventory and 5,000 boxes as initial finished goods inventory. The fixed overhead budget for each period is $ 82,000, while variable overhead costs are set at $ 1.5 per box (FOH rate determination is based on 50,000 direct hours of work).a. Transactions that occur are Purchases of direct materials on account of $ 35,000 and indirect materials of $ 8,000.b.Requests for raw materials and direct labor used:Job No. Materials Labor Cost Direct Labor Hours 10221,80021,6005,50010517,60061,70015,00010831,90085,75010,500General Factory Used5,00010,200-c.Factory insurance expense due until the end of the period $ 7,000d. Factory utility expense payable up to the end of the period $ 18,000e. Depreciation expense for machinery and plant equipment, $ 20,000f. Completed Jobs are Job 102 and 108; while jab 105 has only been completed 80%. The overhead charged is applied to the work in process of each job.g. The finished job is transferred to the finished goods warehouseh. Job No. 102 and 108 are sent to the customer and billed in the first month of the future period. The selling price is set at a markup of 40% of the cost.i. Cover over or underapplied FOH to COGS REQUESTED:1. Mention and briefly describe the type of Cost Accumulation System that you know! Mention the characteristics of companies that use Job Order Costing!2. Make the journal required for the above transactions! FileToolsViewDocument2 - Word (Product Activation Failed)O Akbi_Selasa_10.30 *w Document2Document1*Document32. JOB ORDER COSTINGWhiscats Corporation plans to sell 14,000 boxes of cat food each period. For the comingperiod, management plans to have 3,000 boxes for finished goods ending inventory and5,000 boxes as initial finished goods inventory. The fixed overhead budget for each periodis $ 82,000, while variable overhead costs are set at $ 1.5 per box (FOH rate determinationis based on 50,000 direct hours of work).a) Transactions that occur are Purchases of direct materials on account of $ 35,000 andindirect materials of $ 8,000.b) Requests for raw materials and direct labor used:Job No.MaterialaLabor CostDirect Labor Houra21,80017,60031,9005,00021,60061,70085,75010,2001025,50010515,00010810,500General Factory Usedc) Factory insurance expense due until the end of the period $ 7,000d) Factory utility expense payable up to the end of the period $ 18,000e) Depreciation expense for machinery and plant equipment, $ 20,000f) Completed Jobs are Job 102 and 108; while jab 105 has only been completed 80%.The overhead charged is applied to the work in process of each job.g) The finished job is transferred to the finished goods warehouseh) Job No. 102 and 108 are sent to the customer and billed in the first month of the futureperiod. The selling price is set at a markup of 40% of the cost.i) Cover over or underapplied FOH to COGSREQUESTED:1. Mention and briefly describe the type of Cost Accumulation System that you know!Mention the characteristics of companies that use Job Order Costing!2. Make the journal required for the above transactions!End of document IScreen 1 of 1--100%

Job order costing is defined as the cost accounting function which records the cost of each unit in…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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JOB ORDER COSTING

Whiscats Corporation plans to sell 14,000 boxes of cat food each period. For the coming period, management plans to have 3,000 boxes for finished goods ending inventory and 5,000 boxes as initial finished goods inventory. The fixed overhead budget for each period is $ 82,000, while variable overhead costs are set at $ 1.5 per box (FOH rate determination is based on 50,000 direct hours of work).

a. Transactions that occur are Purchases of direct materials on account of $ 35,000 and indirect materials of $ 8,000.

b.Requests for raw materials and direct labor used:

Job No.	Materials	Labor Cost	Direct Labor Hours
102	21,800	21,600	5,500
105	17,600	61,700	15,000
108	31,900	85,750	10,500
General Factory Used	5,000	10,200	-

c.Factory insurance expense due until the end of the period $ 7,000

d. Factory utility expense payable up to the end of the period $ 18,000

e. Depreciation expense for machinery and plant equipment, $ 20,000

f. Completed Jobs are Job 102 and 108; while jab 105 has only been completed 80%. The overhead charged is applied to the work in process of each job.

g. The finished job is transferred to the finished goods warehouse

h. Job No. 102 and 108 are sent to the customer and billed in the first month of the future period. The selling price is set at a markup of 40% of the cost.

i. Cover over or underapplied FOH to COGS

REQUESTED:

1. Mention and briefly describe the type of Cost Accumulation System that you know! Mention the characteristics of companies that use Job Order Costing!

2. Make the journal required for the above transactions!

File
Tools
View
Document2 - Word (Product Activation Failed)
O Akbi_Selasa_10.30 *
w Document2
Document1*
Document3
2. JOB ORDER COSTING
Whiscats Corporation plans to sell 14,000 boxes of cat food each period. For the coming
period, management plans to have 3,000 boxes for finished goods ending inventory and
5,000 boxes as initial finished goods inventory. The fixed overhead budget for each period
is $ 82,000, while variable overhead costs are set at $ 1.5 per box (FOH rate determination
is based on 50,000 direct hours of work).
a) Transactions that occur are Purchases of direct materials on account of $ 35,000 and
indirect materials of $ 8,000.
b) Requests for raw materials and direct labor used:
Job No.
Materiala
Labor Cost
Direct Labor Houra
21,800
17,600
31,900
5,000
21,600
61,700
85,750
10,200
102
5,500
105
15,000
108
10,500
General Factory Used
c) Factory insurance expense due until the end of the period $ 7,000
d) Factory utility expense payable up to the end of the period $ 18,000
e) Depreciation expense for machinery and plant equipment, $ 20,000
f) Completed Jobs are Job 102 and 108; while jab 105 has only been completed 80%.
The overhead charged is applied to the work in process of each job.
g) The finished job is transferred to the finished goods warehouse
h) Job No. 102 and 108 are sent to the customer and billed in the first month of the future
period. The selling price is set at a markup of 40% of the cost.
i) Cover over or underapplied FOH to COGS
REQUESTED:
1. Mention and briefly describe the type of Cost Accumulation System that you know!
Mention the characteristics of companies that use Job Order Costing!
2. Make the journal required for the above transactions!
End of document I
Screen 1 of 1
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100%

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