The Harriott manufacturing company uses job order costing system. The company uses machinehours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400machine hours would be worked and s5,024,000 overhead cost would be incurred during 2020.The following activities took place in the work in process inventory during February:WIP Inventory A/CNovember i Bal. b/f$51,250Direct Materials Used256,400Other transactions incurred:• Indirect material issued to production was s40,360• Total manufacturing labour incurred in November was $368,000, 75% of this amountrepresented direct labour.• Other manufacturing overhead costs incurred for November amounted to s340,490.• Two jobs were completed with total costs of s384,000 & s270,000 respectively. They weresold on account at a margin of 33%% on sales.Required:i)ii)Compute Harriott's predetermined manufacturing overhead rate for 2020.State the journal entries necessary to record the above transactions in the general journal:a) For direct materials used in Novemberb) For indirect material issued to production in Novemberc) For total manufacturing labour incurred in Novemberd) To assign manufacturing labour to the appropriate accountse) For other manufacturing overhead incurredf) For manufacturing overhead applied to production for November, given that Harriottmanufacturing company worked 2,860 machine hours.g) To move the completed jobs into finished goods inventoryh) To sell the two completed jobs on accountCalculate the manufacturing overhead variance for Harriott and state the journal entriesnecessary to dispose of the variance.iii)iv)What is balance on the Cost of Goods Sold account after the adjustmentv)Calculate the gross profit earned by Harriott on the jobs completed.vi)Determine the balance in work in process inventory on November 30.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The Harriott manufacturing company uses job order costing system. The company uses machinehours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020.The following activities took place in the work in process inventory during February: WIP Inventory A/CNovember 1 Bal. b/f$51,250Direct Materials Used 256,400 Other transactions incurred:▪ Indirect material issued to production was $40,360▪ Total manufacturing labour incurred in November was $368,000, 75% of this amountrepresented direct labour.▪ Other manufacturing overhead costs incurred for November amounted to $340,490.▪ Two jobs were completed with total costs of $384,000 & $270,000 respectively. They weresold on account at a margin of 33⅓% on sales. Cont' For other manufacturing overhead incurredf) For manufacturing overhead applied to production for November, given that…
The Lofton manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: *see attached image* Other transactions incurred: Indirect material issued to production was $40,360 Total manufacturing labour incurred in November was $368,000, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for November amounted to $340,490. Two jobs were completed with total costs of $384,000 & $270,000 respectively. They were sold on account at a margin of 33 1 ⁄ 3% on sales. Required: Compute Lofton’s predetermined manufacturing overhead rate for 2020. State the journal entries necessary to record the above transactions in the general journal: For direct materials…
Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labo hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimated factory overhead is $660,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($9.50/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used $ 7,900 32,000 69,000 110,000 69,000 35,500 4,600 3,900 80,750 13,900 6,400 7,400 2,200 8,100 2,200 12,400 Required: 1. What is the total cost of Job A? 2. What is the…
ces Cadbury Company uses a job order cost system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $120,080 for the year; direct labor was estimated to total $150,100. Additional information for the year is as follows: Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Raw materials purchases Direct materials used Direct labor Indirect materials used Indirect labor Factory equipment depreciation Factory rent Factory utilities Other factory costs Beginning Inventory (1/1) $ 13,100 19,800 42,300 Required: a. Calculate the predetermined overhead rate. b. Calculate cost of goods manufactured. Ending Inventory (12/31) $ 101,000 93,800 125,800 11,700 16,300 $ 8,600 22,900 30,300 26,100 20,600 c. Calculate the over- or underapplied overhead. d. Calculate adjusted cost of goods sold. 8,300 7,600
ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2022, ABC estimated that manufacturing overhead for the year would be P4,800,000 and machine hours would be 80,000. The following information pertains to April 2022: Job #1 Job #2 Job #3 Work in process, April 1 P320,000 P520,000 P760,000 April production: Direct materials requisitioned 80,000 96,000 144,000 Direct labor costs 48,000 72,000 90,000 Machine hours 400 700 900 Actual overhead costs incurred during April amounted to P125,000. During April, jobs 1 and 3 were completed. Job 1 was delivered to a customer and an invoice for P800,000 was billed. Any over- or under-applied overhead is considered to be insignificant. 1. How much is the cost of goods…
Rogers Company uses a job-order costing system. During May, the following costs appeared in the Work in Process Inventory account: Beginning balance Direct material used Direct labor incurred Applied overhead $30,000 90,000 75,000 52,500 Cost of goods manufactured 225,000 Rogers Company applies overhead on the basis of direct labor cost. There was only one job left in Work in Process at the end of May which contained $6,300 of overhead. What amount of direct material was included in this job? Select one: O a. $9,000 O b. $7,200 c. $11,790 d. $11,160
Does the cost of goods manufactured schedule in job order cost accounting is the same as the one shown in the picture attached?
Check my work The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $209,000. b. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). c. Accrued direct labor cost of $48,000 and indirect labor cost of $21,000. d. Depreciation recorded on factory equipment, $104,000. e. Other manufacturing overhead costs accrued during October, $129,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,500 machine-hours were used in October. g. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $452,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 40% above cost. Required: 1. Prepare journal entries to record the…
d Jason's Custom Tooling (JCT) uses a job order cost system and applies overhead using a predetermined overhead rate based on direct labor costs. The following debits (credits) appeared in Work-in-Process Inventory for November: November 1 For the month For the month For the month For the month Description Balance Direct materials Direct labor Factory overhead To finished goods Amount $ 43,000 235,000 144,000 136,800 (419,000) Job 13-11, the only job still in process at the end of November, has been charged direct labor of $30,000. Required: What cost amount of direct materials was charged to Job 13-11? Direct materials $ 80,800 x
Prepare an income statement
Ivanhoe Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,780 and two jobs in process: Job No. 429 $2,160, and Job No. 430 $1,620. During May, a summary of source documents reveals the following. Job Number MaterialsRequisition Slips Labor TimeTickets 429 $2,700 $2,080 430 3,780 3,240 431 4,780 $11,260 8,200 $13,520 General use 920 1,240 $12,180 $14,760 Ivanhoe Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Post entries in the order of journal entries presented in the previous part.) Work in Process Inventory enter a debit amount enter a debit…
What is the ending balance in Work in Process?

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