Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 was completed and sold for $51,800. Job 102 was completed but not sold. Job 103 is still in process. View transaction list Job 101 $ 10,700 $ 17,200 Journal entry worksheet CD < 1,600 hours B Actual overhead costs recorded during the first month of operations totaled $12,740. Required: Note: Enter debits before credits Transaction 01 Job 102 $7,900 $ 6,600 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 2,700 hours 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Record the transfer of completed job 102 to finished goods inventory. General Journal Job 103 $ 6,000 $ 5,800 600 hours Debit Total $ 24,600 $ 29,600 4,900 hours Credit
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 was completed and sold for $51,800. Job 102 was completed but not sold. Job 103 is still in process. View transaction list Job 101 $ 10,700 $ 17,200 Journal entry worksheet CD < 1,600 hours B Actual overhead costs recorded during the first month of operations totaled $12,740. Required: Note: Enter debits before credits Transaction 01 Job 102 $7,900 $ 6,600 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 2,700 hours 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations. Record the transfer of completed job 102 to finished goods inventory. General Journal Job 103 $ 6,000 $ 5,800 600 hours Debit Total $ 24,600 $ 29,600 4,900 hours Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Topic Video
Question
Ee 69.
Transcribed Image Text:Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the
upcoming year, the company estimated its total manufacturing overhead cost at $223,920 and total machine hours at 62,200. During
the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor
cost, and machine hours for each job:
Direct materials used
Direct labor
Machine hours
Job 101 was completed and sold for $51,800.
Job 102 was completed but not sold.
Job 103 is still in process.
View transaction list
Job 101
$ 10,700
$ 17,200
Journal entry worksheet
CD
<
1,600 hours
B
Actual overhead costs recorded during the first month of operations totaled $12,740.
Required:
Note: Enter debits before credits
Transaction
01
Job 102
$7,900
$ 6,600
1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.
2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101.
2,700 hours
3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round
your intermediate calculations.
Record the transfer of completed job 102 to finished goods inventory.
General Journal
Job 103
$ 6,000
$ 5,800
600 hours
Debit
Total
$ 24,600
$ 29,600
4,900 hours
Credit
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