The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. Job 602 Job 603 Job 604 Direct $1,800 $3,300 $2,700 materials Direct 900 1,480 2,300 labor Overhead 450 740 1,150 Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $250; and overhead, $125. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did not change over these months.) Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total? 2. How much total direct labor cost is incurred in June? 3. What predetermined overhead rate is used in June? 4. How much cost is transferred to finished goods inventory in June?

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs. Job 602 Job 603 Job 604 Direct $1,800 $3,300 $2,700 materials Direct 900 1,480 2,300 labor Overhead 450 740 1,150 Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $250; and overhead, $125. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did not change over these months.) Required: 1. What is the cost of the raw materials used in June for each of the three jobs and in total? 2. How much total direct labor cost is incurred in June? 3. What predetermined overhead rate is used in June? 4. How much cost is transferred to finished goods inventory in June?

Name: The computer workstation furniture manufacturing that Santana Rey sta
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of theend of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.Job 602Job 603Job

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Just in Time operating system with backflush pricing is used by Johnson Textiles Company. The completed job in July used direct materials worth $500,000 and conversion costs at $70,000. 200,000 dollars were allocated to the inventory account for work-in-progress at the conclusion of the month. The closing balance of the finished products inventory was 230,000. Needed: Calculate the upcoming a. Amount added to the cost of the products sold. b. Final cost of goods sold balance
The Assembling Department of Origination Inc. had 10,000 units in process on December 1 and received 30,000 units from the Sewing Department. During the month, it completed 20,000 units and transferred them to the Packaging Department. Calculate the number of units accounted for by the Assembling Department for December. Prepare the production cost report for the Assembling Department for the units for the month of December. Use the FIFO method.
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted direct labor hours were 20,000. The average wage rate for direct labor is expected to be $25 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Jub 9 Jeb 41 Jeb 42 Beginning balance Materials requisitioned Direct labor cost $23, 00 18,900 10,000 $34,600 21,400 18,500 S17,000 8,350 3,000 12,000 2,900 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 130 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.…
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component per Job Actual Total for February Revenue $ 279 $ 39,100 Technician wages $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,800 $ 34 $ 9,740 Office expenses $ 2,400 $ 3 $ 2,700 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 930 $ 2 $ 535 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $9,740. The company expected to work 150 jobs in February, but actually worked 152 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the…
Job Costs At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units. The following data relate to these two jobs: On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000. a. Determine the balance on the job cost sheets for Jobs 200 and 305 at the end of May. Job 200 $fill in the blank 1 Job 305 $fill in the blank 2 b. Determine the cost per unit for…
Job Costs At the end of August, Carrothers Company had completed Jobs 50 and 56. Job 50 is for 1,000 units, and Job 56 is for 200 units. The following data relate to these two jobs: On August 4, raw materials were requisitioned for production as follows: 700 units for Job 50 at $20 per unit and 1,000 units for Job 56 at $20 per unit. During August, Carrothers Company accumulated 700 hours of direct labor costs on Job 50 and 400 hours on Job 56. The total direct labor was incurred at a rate of $10 per direct labor hour for Job 50 and $24 per direct labor hour for Job 56. The predetermined factory overhead rate is $12.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 50 and 56 at the end of August. Job 50 $fill in the blank 1 Job 56 $fill in the blank 2 b. Determine the cost per unit for Jobs 50 and 52 at the end of August. If required, round your answers to the nearest cent. Job 50 $fill in the blank 3 Job 56 $fill in the blank 4 Please don't give…
Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,900 of indirect materials and $13,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $10,900 Direct materials $18,300 Direct labor 8,900 Direct labor 17,700 Factory overhead 5,785 Factory overhead 11,505 Total $25,585 Total $47,505 Job 303 Job 304 Direct materials $26,000 Direct materials $13,700 Direct labor 16,000 Direct labor 12,300 Factory overhead — Factory overhead — Required:…
In June, Olympic Company purchased materials costing $37,500 and incurred direct labor cost of $41,500. Overhead totaled $29,700 for the month. Information on inventories was as follows: June 1 June 30 Materials $2,500 $4,000 Work in process 3,100 900 Finished goods 2,610 1,675 Calculate the cost of direct materials used during June? Calculate the total manufacturing cost for June. Calculate the cost of goods manufactured for June. Calculate the cost of goods sold for June.
Job Costs At the end of May, Lockmiller Company had completed Jobs 275 and 310. Job 275 is for 5,000 units, and Job 310 is for 2,000 units. The following data relate to these two jobs: On May 7, Lockmiller Company purchased on account 12,000 units of materials at $6 per unit. During May, raw materials were requisitioned for production as follows: 8,400 units for Job 275 at $6 per unit and 2,150 units for Job 310 at $4 per unit. During May, Lockmiller Company accumulated 1,900 hours of direct labor costs on Job 275 and 2,600 hours on Job 310. The total direct labor was incurred at a rate of $34 per direct labor hour for Job 275 and $26 per direct labor hour for Job 310. Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct labor hours are estimated to be 102,000. a. Determine the balance on the job cost sheets for Jobs 275 and 310 at the end of May. b. Determine the cost per unit for Jobs 275 and 310 at the end of May. If required, round…
In July, one of the processing departments at Junkin Corporation had beginning work in process inventory of $30,000 and ending work in process inventory of $32,000. During the month, $206,000 of costs were added to production and the cost of units transferred out from the department was $204,000. Required: Construct a cost reconciliation report for the department for the month of July. Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the month Total cost to be accounted for Costs accounted for as follows: Cost of ending work in process inventory Cost of units transferred out Total cost accounted for
The following account appears in the ledger prior to recognizing the jobs completed in August: Work in Process Balance, August 1 $ 60,000 Direct materials 325,000 Direct labor 462,000 Factory overhead 210,000 Jobs finished during August are summarized as follows: Job 210 $197,800 Job 216 240,000 Job 224 160,000 Job 230 364,000 Required: Determine the cost of the unfinished jobs at August 31.
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted direct labor hours were 26,000. The average wage rate for direct labor is expected to be $20 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $25,900 $33,300 $17,900 $1,400 Materials requisitioned 20,400 21,800 12,000 14,000 Direct labor cost 11,500 18,900 6,650 4,900 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 125 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain…