Sunland Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,800, direct labor $11,280, and manufacturing overhead $15,040. As of January 1, Job 49 had been completed at a cost of $84,600 and was part of finished goods inventory. There was a $14,100 balance in the Raw Materials Inventory account on January 1. During the month of January, Sunland Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $114,680 and $148,520, respectively. The following additional events occurred during the month. 1. 2. 3. 4. 5. Purchased additional raw materials of $84,600 on account. Incurred factory labor costs of $65,800. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,280; and various other manufacturing overhead costs on account $15,040. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials $9,400 36,660 50 51 52 Beg. Assigned indirect materials of $15,980 and indirect labor of $18,800. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary. Job No. 50 Date Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Date Jan. 28,200 Cost of completed job Direct materials Direct labor Manufacturing overhead. Total cost Jan. Direct Labor $4,700 23,500 18,800 Direct Materials Direct Labor Manufacturing Overhead $ $ Direct Materials Direct Labor Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead S Manufacturing Overhead $ $
Sunland Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,800, direct labor $11,280, and manufacturing overhead $15,040. As of January 1, Job 49 had been completed at a cost of $84,600 and was part of finished goods inventory. There was a $14,100 balance in the Raw Materials Inventory account on January 1. During the month of January, Sunland Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $114,680 and $148,520, respectively. The following additional events occurred during the month. 1. 2. 3. 4. 5. Purchased additional raw materials of $84,600 on account. Incurred factory labor costs of $65,800. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,280; and various other manufacturing overhead costs on account $15,040. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials $9,400 36,660 50 51 52 Beg. Assigned indirect materials of $15,980 and indirect labor of $18,800. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary. Job No. 50 Date Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost Job No. 51 Date Jan. 28,200 Cost of completed job Direct materials Direct labor Manufacturing overhead. Total cost Jan. Direct Labor $4,700 23,500 18,800 Direct Materials Direct Labor Manufacturing Overhead $ $ Direct Materials Direct Labor Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead S Manufacturing Overhead $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Sunland Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The
costs incurred prior to January 1 on this job were as follows: direct materials $18,800, direct labor $11,280, and manufacturing overhead $15,040. As of January 1, Job 49 had
been completed at a cost of $84,600 and was part of finished goods inventory. There was a $14,100 balance in the Raw Materials Inventory account on January 1.
During the month of January, Sunland Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for
$114,680 and $148,520, respectively. The following additional events occurred during the month.
1.
2.
3.
4.
5.
Purchased additional raw materials of $84,600 on account.
Incurred factory labor costs of $65,800.
Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,280; and various other manufacturing overhead costs on account $15,040.
Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials
50
51
52
Beg.
Jan.
Direct labor
Assigned indirect materials of $15,980 and indirect labor of $18,800.
Cost of completed job
Direct materials
Total cost
Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all
Job No. 50
Date
Job No. 51
Date
Manufacturing overhead
Jan.
$9,400
36,660
Direct labor
28,200
Cost of completed job
Direct materials
Total cost
Manufacturing overhead
Jan.
$
Direct Labor
$
$4,700
$
$
23,500
Direct Materials
18,800
$
Direct Labor
$
Direct Materials Direct Labor
$
Job No. 52
Date Direct Materials Direct Labor Manufacturing Overhead
Manufacturing Overhead
$
$
$
Manufacturing Overhead
$
to the
st sheets as necessary.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education