Question 4  What is the value of direct labor allocated to Job 1? Question 4 options:   $160,000   $140,000   $60,000   $30,000   $50,000

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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Question 4 

What is the value of direct labor allocated to Job 1?

Question 4 options:

 

$160,000

 

$140,000

 

$60,000

 

$30,000

 

$50,000

Question 5

What is the value of direct labor allocated to Job 2?

Question 5 options:

 

$140,000

 

$50,000

 

$160,000

 

$30,000

 

$60,000

Question 6

What is the value of direct labor allocated to Job 3?

Question 6 options:

 

$160,000

 

$50,000

 

$140,000

 

$30,000

 

$60,000

Question 7 

What is the value of factory overhead allocated to Job 1?

Question 7 options:

 

$50,000

 

$40,000

 

$60,000

 

$32,000

 

$8,000

Question 8

What is the value of factory overhead allocated to Job 2?

Question 8 options:

 

$50,000

 

$32,000

 

$60,000

 

$40,000

 

$8,000

Question 9

What is the value of factory overhead allocated to Job 3?

Question 9 options:

 

$50,000

 

$40,000

 

$60,000

 

$32,000

 

$8,000

Question 10 

What is the value of total costs allocated to Job 1?

Question 10 options:

 

$240,000

 

$188,000

 

$88,000

 

$132,000

 

$242,000

Question 11 

What is the value of total costs allocated to Job 2?

Question 11 options:

 

$132,000

 

$88,000

 

$188,000

 

$240,000

 

$242,000

Question 12

What is the value of total costs allocated to Job 3?

Question 12 options:

 

$88,000

 

$242,000

 

$132,000

 

$240,000

 

$188,000

Question 13

What is the Job 1's cost per unit?

Question 13 options:

 

$11

 

$10

 

$20

 

$18

 

$15

Question 14 

What is the Job 2's cost per unit?

Question 14 options:

 

$20

 

$18

 

$15

 

$10

 

$11

Question 15

What is the Job 3's cost per unit?

Question 15 options:

 

$11

 

$20

 

$15

 

$10

 

$18

Question 16 

What is the ending value of Raw Materials (also referred to as Raw Materials Inventory) relating to Jobs 1, 2 and 3 ?

Question 16 options:

 

$59,000

 

$51,000

 

$44,000

 

$45,000

 

$53,000

Question 17

What is the ending value of WIP (also referred to as Work in Process Inventory) relating to Jobs 1, 2 and 3?

Question 17 options:

 

$95,000

 

$44,000

 

$53,000

 

$45,000

 

$51,000

Question 18 

What is the ending value of Finished Goods (also referred to as Finished Goods Inventory) relating to Jobs 1, 2 and 3?

Question 18 options:

 

$45,000

 

$44,000

 

$51,000

 

$53,000

 

$59,000

Question 19 

What is the January Sales Revenue related to Job 1?

Question 19 options:

 

$450,000

 

$500,000

 

$380,000

 

$540,000

 

$100,000

Question 20

What is the January Sales Revenue related to Job 2?

Question 20 options:

 

$500,000

 

$380,000

 

$450,000

 

$100,000

 

$540,000

Question 21 

What is the January Sales Revenue related to Job 3?

Question 21 options:

 

$380,000

 

$540,000

 

$500,000

 

$450,000

 

$100,000

Question 22

What is the January Cost of Goods Sold (CGS) related to Job 1?

Question 22 options:

 

$148,000

 

$180,000

 

$200,000

 

$218,000

 

$44,000

Question 23

What is the January Cost of Goods Sold (CGS) related to Job 2?

Question 23 options:

 

$180,000

 

$218,000

 

$44,000

 

$148,000

 

$200,000

Question 24 

What is the January Cost of Goods Sold (CGS) related to Job 3?

Question 24 options:

 

$218,000

 

$44,000

 

$180,000

 

$200,000

 

$148,000

Question 25 

What is the Gross Margin Percentage related to Job 1?

Question 25 options:

 

56.00%

 

60.00%

 

54.00%

 

50.67%

 

66.67%

Question 26 

What is the Gross Margin Percentage related to Job 2?

Question 26 options:

 

66.67%

 

60.00%

 

54.00%

 

56.00%

 

50.67%

Question 27

What is the Gross Margin Percentage related to Job 3?

Question 27 options:

 

56.00%

 

60.00%

 

54.00%

 

50.67%

 

66.67%

Question 28 

What is the total value of inventory Kaitlyn, Inc. will report on it's January 31st balance sheet relating to Jobs 1, 2 and 3?

Question 28 options:

 

$153,000

 

$159,000

 

$151,000

 

$145,000

 

$190,000

Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes
the operations related to production and sales for January, the first month of operations. Kaitlyn,
Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead
costs and direct labor hours. Total direct labor hours for January are 75,000 hours.
Purchased the following raw materials:
• 6,000 units for Job 1 @ $10/unit
• 5,500 units for Job 2 @ $15/unit
• 12,300 units for Job 3 @ $5/unit
Requisitioned materials for production:
• 5,000 units for Job 1 @ $10/unit
• 4,000 units for Job 2 @ $15/unit
• 10,000 unit for Job 3 @ $5/unit
• Direct labor costs:
• 2,000 hours of direct labor on Job 1 at $15 per hour
• 10,000 hours of direct labor on Job 2 at $14 per hour
• 8,000 hours of direct labor on Job 3 at $20 per hour
• Total factory overhead costs for the month:
• $70,000 of indirect materials
• $115,000 of indirect labor
• $97,000 of utilities costs
• $18,000 of factory depreciation
• Production data:
• Job 1 produced 5,000 units out of an estimated possible 8,000 units,
• Job 2 produced 20,000 units out of an estimated possible 24,000 units
• Job 3 produced 11,000 units out of an estimated possible 12,100 units,
Sales data:
• Job 1→ 4,000 units sold on credit for $25 per unit
• Job 2 → 18,000 units sold on credit for $30 per unit
• Job 3 → 10,000 units sold on credit for $50 per unit
To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets.
Helpful Hint: While not required for this assignment, it might be helpful to create the related
journal entries.
Transcribed Image Text:Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 @ $10/unit • 5,500 units for Job 2 @ $15/unit • 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: • 5,000 units for Job 1 @ $10/unit • 4,000 units for Job 2 @ $15/unit • 10,000 unit for Job 3 @ $5/unit • Direct labor costs: • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour • Total factory overhead costs for the month: • $70,000 of indirect materials • $115,000 of indirect labor • $97,000 of utilities costs • $18,000 of factory depreciation • Production data: • Job 1 produced 5,000 units out of an estimated possible 8,000 units, • Job 2 produced 20,000 units out of an estimated possible 24,000 units • Job 3 produced 11,000 units out of an estimated possible 12,100 units, Sales data: • Job 1→ 4,000 units sold on credit for $25 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.
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Follow-up Questions
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Follow-up Question

What is the ending value of Raw Materials (also referred to as Raw Materials Inventory) relating to Jobs 1, 2 and 3 ?

 

Question 16 options:

 

$45,000

 

$59,000

 

$53,000

 

$44,000

 

$51,000

 
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Follow-up Question

What is the value of direct materials allocated to Job 1 in the determination of the total cost of Job 1?

 

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