The Ultra Manufacturing Co. charges factory overhead to production based on labor hours. Estimated factory overhead for 19H amount to P150,000 (including fixed overhead of P60,000) based on 20,000 labor hours. Work in process as of the beginning of 19H consisted of two jobs with prime costs and labor hours given below. Factory overhead rate in 19G was P7 per labor hour.. Job Order No. 28 29 30 31 32 Work in process, Jan. 1: Direct materials Direct labor Labor hours P8,350 2,890 170 P6,725 2,120 130 Prime costs and labor hours in 19H: Direct materials Direct labor Labor hours P88,000 55,000 4,100 P97,000 P79,000 P92,500 50,500 3,900 P59,000 34,200 2,400 62,000 5,500 In 19H, total debit to the factory overhead control account amounted to P151,000 57,000 4,300 Jobs 28, 29 and 30 were completed in 19H. Jobs 28 and 29 were sold at 60% above cost. Required: a. Simple cost sheets b. Journal entries for 19H using Applied Factory Overhead account c. Analysis of the factory overhead variance.

The Ultra Manufacturing Co. charges factory overhead to production based on labor hours. Estimated factory overhead for 19H amount to P150,000 (including fixed overhead of P60,000) based on 20,000 labor hours. Work in process as of the beginning of 19H consisted of two jobs with prime costs and labor hours given below. Factory overhead rate in 19G was P7 per labor hour.. Job Order No. 28 29 30 31 32 Work in process, Jan. 1: Direct materials Direct labor Labor hours P8,350 2,890 170 P6,725 2,120 130 Prime costs and labor hours in 19H: Direct materials Direct labor Labor hours P88,000 55,000 4,100 P97,000 P79,000 P92,500 50,500 3,900 P59,000 34,200 2,400 62,000 5,500 In 19H, total debit to the factory overhead control account amounted to P151,000 57,000 4,300 Jobs 28, 29 and 30 were completed in 19H. Jobs 28 and 29 were sold at 60% above cost. Required: a. Simple cost sheets b. Journal entries for 19H using Applied Factory Overhead account c. Analysis of the factory overhead variance.

Name: Exercise 10: Job Order Costing-Journal EntricsThe Ultra Manufacturing
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Description: Exercise 10: Job Order Costing-Journal EntricsThe Ultra Manufacturing Co. charges factory overhead to production based onlabor hours. Estimated factory overhead for 19H amount to P150,000 (including fixedoverhead of P60,000) based on 20,000 labor ho

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During March, Estes Company worked on three jobs. Data relating to these three jobs follow: Job 86 Job 87 150 240 240 $1,368 264 $3,432 Units in each order Units sold Materials requisitioned Direct labor hours Direct labor cost $1,140 165 $1,815 Job 88 210 $2,499 315 $2,835 Overhead is assigned on the basis of direct labor hours at a rate of $8.50 per direct labor hour. During March, Jobs 86 and 87 were completed and transferred to Finished Goods Inventory. Job 87 was sold by the end of the month. Job 88 was the only unfinished job at the end of the month.
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Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion Company estimated the following: Overhead $434,400 Direct labor hours 78,250 Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 17,215. Required: 1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent.$ per direct labor hour 2. Calculate the overhead applied to production in March. Round your intermediate calculations to two decimal places and round your answer to nearest whole value.$
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