17. LO.4 (Cost accumulation) Blaine Corp. makes floats for Mardi Gras in New Orleans.The company's fiscal year ends on March 31. On January 1, 2010, the company's WIPInventory account appeared as follows:Work in Process InventoryBeginning balance916,650Cost of completed jobs??Direct material589,670Direct labor159,600Applied overhead127,680The direct labor cost contained in the beginning balance of WIP Inventory was for atotal of 15,200 direct labor hours (DLHs). During January, 7,600 DLHs were recorded.Only one job was still in process on January 31. That job had $73,250 in direct materialand 2,850 DLHs assigned to it.a. If overhead is applied on the basis of DLHs, what predetermined OH rate was ineffect during the company's 2009-2010 fiscal year?b. What was the average direct labor rate per hour?c. What amount of direct material cost was in the beginning balance of WIPInventory?d. What was the balance in WIP Inventory at the end of January?e. What was the total cost of jobs manufactured in January?

The overhead rate is a cost connected with the manufacturing of a product or service. Overhead costs…

Answered: Work in Process Inventory ce 916,650…

Work in Process Inventory ce 916,650 Cost of completed jobs ?? 589,670 159,600 d 127,680 cost contained in the beginning balance of WIP Inventory was for a

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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Answer i
The Fielder 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 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C February 1 Bal. Direct Materials Used b/f 256,400 51,250 Other transactions incurred: • Indirect material issued to production was $38,000 • Total manufacturing labour incurred in February was $345,000, 80% of this amount represented direct labour. • Other manufacturing overhead costs incurred for February amounted to $340,750. • Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales.
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
13. Jane Company uses Job order costing system and applies manufacturing overhead to work in process using a predetermined annual overhead rate. During May 2020, Jane's transactions included the following: Direct materials issued to production Indirect materials issued to production Manufacturing overhead incurred Manufacturing overhead applied Direct labor costs P50,000 4,000 75,000 80,000 60,000 Jane had neither beginning nor ending work in process inventory. What was the cost of jobs completed in May 2020?
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The Fielder 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 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C February 1 bal. b/f 51,250 Direct Material Used 256,400 Other transactions incurred: ▪ Indirect material issued to production was $38,000 ▪ Total manufacturing labour incurred in February was $345,000, 80% of this amount represented direct labour. ▪ Other manufacturing overhead costs incurred for February amounted to $340,750. ▪ Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales. Required: 1Calculate the manufacturing…
siness AccountingQ&A LibraryThe Harriott 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: WIP Inventory A/C November 1 Bal. b/f Direct Materials Used $51,250 256,400 Other transactions incurred: ▪ Indirect material issued to production was $40,360 ▪ Total manufacturing labour incurred in November was $368,000, 75% of this 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 33⅓% on sales. Required: i) Compute Harriott’s predetermined manufacturing overhead rate for 2020. ii) State the journal entries…
Vakos Manufacturers uses the traditional approach in allocating manufacturing overheads base hours. They have provided you with the following information: E For year ended 30 December 2022: Purchases - direct materials Cost per labour hour Manufacturing Overhead rate Actual Labour hours Actual Machine hours a) b) c) Actual manufacturing overheads Selling and admin expenses Interest paid Sales Tax rate Inventories at year end: Materials Work in Process Finished Goods 205,000 6 15/mach.hr 20,000hrs 30,000hrs 440,000 400,000 40,000 2,000,000 30% 2021 2022 (E) (E) 5,000 10,000 20,000 30,000 25,000 15,000 Compute the total Applied Manufacturing Overhead costs using the rate. Compute the MO Overhead cost variance and state whether over or underapplied and how the variance would be treated. Prepare a Statement of Goods Manufactured for year ended 31 December 2022 using Actual M.O costs. Prepare the Income Statement for year ended 30 December 2022.
The Fielder 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 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C February 1 Bal. b/f 51,250 Direct Materials Used 256,400 Other transactions incurred: ▪ Indirect material issued to production was $38,000. ▪ Total manufacturing labor incurred in February was $345,000, 80% of this amount represented direct labor. ▪ Other manufacturing overhead costs incurred for February amounted to $340,750. ▪ Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales. Required: 1. State the journal entries necessary to record the above transactions in the…
20. Ethel Company's job order system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January 2020, Ethel's transactions included the following: Direct materials issued to production Indirect materials issued to production 8,000 Manufacturing overhead incurred Manufacturing overhead applied Direct labor costs P 90,000 125,000 113,000 107,000 Ethel had neither beginning nor ending work-in process inventory, What was the cost of jobs completed in January 2020?
2 ts eBook Mc Graw Hill The following information is for Punta Company for July: a. Factory overhead costs were applied to jobs at the predetermined rate of $50.00 per labor hour. Job Sincurred 6,250 labor hours; Job T used 4,350 labor hours. b. Job S was shipped to customers during July. c. Job T was still in process at the end of July. d. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July. e. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows: " Utilities Depreciation Insurance Total f. Direct materials and indirect materials used are as follows: $ 16,500 48,750 Job Job T Indirect labor Total $ 19,500 84,750 Job S $ 32,250 Job T $75,000 37,250 14,250 $46,500 $ 112,250 Total 107,250 $ 51,500 158,750 214,750 $373,500 Material A Material B Subtotal Indirect materials Total g. Direct labor incurred for the two jobs and indirect labor are as follows: $ 63,000 52,500 148,000 $263,500…
17. The Cookie Inc. has the following information for the month of March. Prepare a (a)schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c)prepare only the inventory of the balance sheet.Purchases $85,000Materials inventory, March 1 6,000Materials inventory, March 31 7,000Direct labor 25,000Factory overhead 34,000Work in process, March 1 17,000Work in process, March 31 18,500Finished goods inventory, March 1 21,000Finished goods inventory, March 31 23,000Sales 235,000Sales and administrative expenses 78,000