The following data were taken from the records of Sheridan Enterprises, a Canadian manufacturer that uses a normal job-ordercosting system:Job NumberDirect materialsDirect labourApplied overheadTotalJob NumberDirect materialsDirect labourDirect labour hours5.6.7.8.1.2.Work in Process, December 13.704.$2,1201,420During December, the company worked on jobs numbered 70 through 90 and incurred the following costs:710$4,25070$710$89075$2,830 $1,770602.8301,5908075710$7,250 $3,01053012085$1,060 $1,420$1,590$1,770 $3,540 $2,66080Using the information given, calculate the following amounts:240180The cost of ending work in process inventoryThe cost of goods manufactured in December90The company writes off all under- or over-applied overhead to Cost of Goods Sold at the end of the year.Jobs 70, 80, 85, and 90 were completed during December. Only Job 90 remained in finished goods on December 31.The company charges its customers 250% of total manufacturing cost.Cost of goods sold to December 1 was $42,120.The unadjusted gross margin for December$1,770$7,080470Total$6,550$15,940The predetermined overhead rate used to apply overhead to products $1,070$$$1210,080per labour hourAdditional information:1.2.3.4.Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the companyestimated that total overhead costs for the year would be $177,000, and the total labour hours worked would be 14,750.The balance in the Departmental Overhead Control account on December 1 was $188,810. Actual direct labour hours for theprevious 11 months (January through November) were 13,280.There were no jobs in finished goods on December 1.Expenses for December were as follows (not yet recorded in the books of account):Direct materials purchasedSalariesProduction clerkSupervisorDepreciation (plant and equipment)Factory suppliesSales staff salariesUtilities (factory)Administrative expensesOverhead $$8,8501,770Net income will be2,6002,9401,77010,8602,12011,210Calculate the under- or over-applied overhead for the year.$42,120What effect would this amount have on net income?by $

Name: The following data were taken from the records of Sheridan Enterprise
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: The following data were taken from the records of Sheridan Enterprises, a Canadian manufacturer that uses a normal job-ordercosting system:Job NumberDirect materialsDirect labourApplied overheadTotalJob NumberDirect materialsDirect labourDirect labo

The total cost of a job is the direct material , direct labour and allocated manufacturing overheads…

Business

Accounting

The following data were taken from the records of Sheridan Enterprises, a Canadian manufacturer that uses a normal job-order costing system: Job Number Direct materials Direct labour Applied overhead Total Job Number Direct materials Direct labour Direct labour hours 5. 6. 7. 8. During December, the company worked on jobs numbered 70 through 90 and incurred the following costs: 1. 2. Work in Process, December 1 70 $2,120 3. 1,420 4. 710 $4,250 75 80 $2.830 $1,770 2,830 1,590 $7,250 $3,010 60 710 75 Total 70 85 $710 $1,060 $1,420 $1,590 $890 $1,770 $3,540 $2,660 $7,080 $15,940 $1,770 $6,550 470 1,070 530 120 80 Using the information given, calculate the following amounts: 240 The company writes off all under-or over-applied overhead to Cost of Goods Sold at the end of the year. Jobs 70, 80,85, and 90 were completed during December. Only Job 90 remained in finished goods on December 31. The company charges its customers 250% of total manufacturing cost. Cost of goods sold to December 1 was $42,120. 180 The cost of ending work in process inventory 90 The predetermined overhead rate used to apply overhead to products The cost of goods manufactured in December The unadjusted gross margin for December $ $ $ $ 12 10,080 per labour hour Additional information: 1. 2 3. 4. Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the company estimated that total overhead costs for the year would be $177,000, and the total labour hours worked would be 14,750. The balance in the Departmental Overhead Control account on December 1 was $188,810. Actual direct labour hours for the previous 11 months (January through November) were 13.280. There were no jobs in finished goods on December 1. Expenses for December were as follows (not yet recorded in the books of account): Direct materials purchased Salaries Production clerk Supervisor Depreciation (plant and equipment) Factory supplies Sales staff salaries Utilities (factory) Administrative expenses Overhead $ $8,850 1.770 2.600 Net income will be 2,940 1.770 10,860 2,120 11.210 Calculate the under-or over-applied overhead for the year. $42,120 What effect would this amount have on net income? ✓ by $