The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations. (1) Materials and supplies were requisitioned from the stores clerk as follows: Job 405, material X, $7,100. Job 406, material X, $3,100; material Y, $6,100. Job 407, material X, $7,100; material Y, $3,30o. For general factory use: materials A, B, and C, $2,400 (2) Time tickets for the month were chargeable as follows: $ 11,100 $ 14,100 $ 8,100 $ 3,800 Job 405 3,100 hours Job 406 3,700 hours Job 407 2,000 hours Indirect labor (3) Other information: Factory paychecks for $36,800 were issued during the month. Various factory overhead charges of $19,500 were incurred on account. Depreciation of factory equipment for the month was $5,500. Factory overhead was applied to jobs at the rate of $3.30 per direct labor hour. Job orders completed during the month: Job 405 and Job 406. Selling and administrative costs were $2.200. Factory overhead is closed out only at the end of the year. The end of the month Work-in-Process Inventory balance would be: Multiple Cholce $89,500. $17,490. $64,400. S25100 O O O

The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations. (1) Materials and supplies were requisitioned from the stores clerk as follows: Job 405, material X, $7,100. Job 406, material X, $3,100; material Y, $6,100. Job 407, material X, $7,100; material Y, $3,30o. For general factory use: materials A, B, and C, $2,400 (2) Time tickets for the month were chargeable as follows: $ 11,100 $ 14,100 $ 8,100 $ 3,800 Job 405 3,100 hours Job 406 3,700 hours Job 407 2,000 hours Indirect labor (3) Other information: Factory paychecks for $36,800 were issued during the month. Various factory overhead charges of $19,500 were incurred on account. Depreciation of factory equipment for the month was $5,500. Factory overhead was applied to jobs at the rate of $3.30 per direct labor hour. Job orders completed during the month: Job 405 and Job 406. Selling and administrative costs were $2.200. Factory overhead is closed out only at the end of the year. The end of the month Work-in-Process Inventory balance would be: Multiple Cholce $89,500. $17,490. $64,400. S25100 O O O

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Description: The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations.(1) Materials and supplies were requisitioned from the stores cl

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PB: The following data summarize the operations during the year. Prepare a journal entry for each...

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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.

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Question

The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations.
(1) Materials and supplies were requisitioned from the stores clerk as follows:
Job 405, material X, $7,100.
Job 406, material X. $3,100: material Y, $6,100.
Job 407. material X, $7,100; material Y, $3.30o.
For general factory use: materials A, B, and C. $2,400.
(2) Time tickets for the month were chargeable as follows:
$ 11,100
$ 14,100
$ 8,100
$ 3,800
Job 405
3,100 hours
Job 406
3,700 hours
Job 407
2,000 hours
Indirect labor
(3) Other information:
Factory paychecks for $36,800 were issued during the month.
Various factory overhead charges of $19,500 were incurred on account.
Depreciation of factory equipment for the month was $5,50o.
Factory overhead was applied to jobs at the rate of $3.30 per direct labor hour.
Job orders completed during the month: Job 405 and Job 406.
Selling and administrative costs were $2,200.
Factory overhead is closed out only at the end of the year.
The end of the month Work-in-Process Inventory balance would be:
Multiple Cholce
$89,500.
$17,490.
$64,400.
$25100

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Barnes Company uses a job order cost system. The following data summarize the operations related to production for October: a. Materials purchased on account, 315,500. b. Materials requisitioned, 290,100, of which 8,150 was for general factory use. c. Factory labor used, 489,500 of which 34,200 was indirect. d. Other costs incurred on account for factory overhead, 600,000; selling expenses, 150,000; and administrative expenses, 100,000. e. Prepaid expenses expired for factory overhead were 18,000; for selling expenses, 6,000; and for administrative expenses, 5,000. f. Depreciation of office building was 30,000; of office equipment, 7,500; and of factory equipment, 60,000. g. Factory overhead costs applied to jobs, 711,600. h. Jobs completed, 1,425,000. i. Cost of goods sold, 1,380,000. Instructions Journalize the entries to record the summarized operations.
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