Homework Help is Here – Start Your Trial Now!
Business
Accounting
XYZ Company manufactures special purpose machines to order. Because the products are tailored for the customers' preference, completed units are automatically sold to gain 20% profit on billed price. On 1/1/2017 there were two jobs in process, 405 and 406. The following costs were applied to them in 2016: Job 405 P 5,000 Job 406 P 8,000 Direct material 4,000 4,400 P13,400 Direct labor 3,000 Overhead 3,300 P14,300 Total During January of 2017, the following transactions took place: Raw material costing P40,000 was purchased on account. • Jobs #407, 408, and 409 were started and the following costs were applied to them: Job 407 Job 408 Job 409 P 7,000 Direct materials P3,000 P10,000 Direct labor 5,000 6,000 4,000 Job P405 and Job #406 were completed after incurring additional direct labor costs of P2,000 and P4,000, respectively. Job 408 is also completed on January. Wages paid to production employees during January totaled P25,000. Depreciation of factory equipment for the month of January totaled P10,000. Utilities bills (where 30% of the utilities are related to office, while the remaining can be attributed to the factory) in the amount of P10,000 were paid for December 2016 operations. • Supplies costing P2,000 were used. Only 40% is used by the factory, while the 60% is used for promotional activities (flyers, etc.). Office rent totaling P5,000 were billed for January operations. Miscellaneous overhead expenses totaled P13,300 for January. Any over- or underapplied overhead is considered material for the company. REQUIRED: 1. How much is the total manufacturing costs for January? 2. Give the entry to record the closing of over-underapplied overhead for the period. 3. How much is the adjusted ending Work-in-Process Inventory? 4. How much is the Net income for January?

XYZ Company manufactures special purpose machines to order. Because the products are tailored for the customers' preference, completed units are automatically sold to gain 20% profit on billed price. On 1/1/2017 there were two jobs in process, 405 and 406. The following costs were applied to them in 2016: Job 405 P 5,000 Job 406 P 8,000 Direct material 4,000 4,400 P13,400 Direct labor 3,000 Overhead 3,300 P14,300 Total During January of 2017, the following transactions took place: Raw material costing P40,000 was purchased on account. • Jobs #407, 408, and 409 were started and the following costs were applied to them: Job 407 Job 408 Job 409 P 7,000 Direct materials P3,000 P10,000 Direct labor 5,000 6,000 4,000 Job P405 and Job #406 were completed after incurring additional direct labor costs of P2,000 and P4,000, respectively. Job 408 is also completed on January. Wages paid to production employees during January totaled P25,000. Depreciation of factory equipment for the month of January totaled P10,000. Utilities bills (where 30% of the utilities are related to office, while the remaining can be attributed to the factory) in the amount of P10,000 were paid for December 2016 operations. • Supplies costing P2,000 were used. Only 40% is used by the factory, while the 60% is used for promotional activities (flyers, etc.). Office rent totaling P5,000 were billed for January operations. Miscellaneous overhead expenses totaled P13,300 for January. Any over- or underapplied overhead is considered material for the company. REQUIRED: 1. How much is the total manufacturing costs for January? 2. Give the entry to record the closing of over-underapplied overhead for the period. 3. How much is the adjusted ending Work-in-Process Inventory? 4. How much is the Net income for January?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 3CMA: Lucy Sportswear manufactures a specialty line of T-shirts using a job order cost system. During...
See similar textbooks
icon
Related questions
Question

Please answer highlighted question only. 

XYZ Company manufactures special purpose machines to order. Because the products are tailored for the customers' preference, completed units are automatically sold to gain 20% profit on billed price. On 1/1/2017 there were two jobs in process, 405 and 406. The following costs were applied to them in 2016: Job 405 P 5,000 Job 406 P 8,000 Direct material Direct labor 4,000 3,000 Overhead 3,300 P14.300 4,400 Total P13,400 During January of 2017, the following transactions took place: Raw material costing P40,000 was purchased on account. Jobs #407, 408, and 409 were started and the following costs were applied to them: Job 407 Job 408 Job 409 P 7,000 4,000 Direct materials Р3,000 P10,000 Direct labor 5,000 6,000 Job P405 and Job #406 were completed after incurring additional direct labor costs of P2,000 and P4,000, respectively. Job 408 is also completed on January. Wages paid to production employees during January totaled P25,000. Depreciation of factory equipment for the month of January totaled P10,000. Utilities bills (where 30% of the utilities are related to office, while the remaining can be attributed to the factory) in the amount of P10,000 were paid for December 2016 operations. • Supplies costing P2,000 were used. Only 40% is used by the factory, while the 60% is used for promotional activities (flyers, etc.). Office rent totaling P5,000 were billed for January operations. • Miscellaneous overhead expenses totaled P13,300 for January. Any over- or underapplied overhead is considered material for the company. REQUIRED: 1. How much is the total manufacturing costs for January? 2. Give the entry to record the closing of over-underapplied overhead for the period. 3. How much is the adjusted ending Work-in-Process Inventory? 4. How much is the Net income for January?
Transcribed Image Text:XYZ Company manufactures special purpose machines to order. Because the products are tailored for the customers' preference, completed units are automatically sold to gain 20% profit on billed price. On 1/1/2017 there were two jobs in process, 405 and 406. The following costs were applied to them in 2016: Job 405 P 5,000 Job 406 P 8,000 Direct material Direct labor 4,000 3,000 Overhead 3,300 P14.300 4,400 Total P13,400 During January of 2017, the following transactions took place: Raw material costing P40,000 was purchased on account. Jobs #407, 408, and 409 were started and the following costs were applied to them: Job 407 Job 408 Job 409 P 7,000 4,000 Direct materials Р3,000 P10,000 Direct labor 5,000 6,000 Job P405 and Job #406 were completed after incurring additional direct labor costs of P2,000 and P4,000, respectively. Job 408 is also completed on January. Wages paid to production employees during January totaled P25,000. Depreciation of factory equipment for the month of January totaled P10,000. Utilities bills (where 30% of the utilities are related to office, while the remaining can be attributed to the factory) in the amount of P10,000 were paid for December 2016 operations. • Supplies costing P2,000 were used. Only 40% is used by the factory, while the 60% is used for promotional activities (flyers, etc.). Office rent totaling P5,000 were billed for January operations. • Miscellaneous overhead expenses totaled P13,300 for January. Any over- or underapplied overhead is considered material for the company. REQUIRED: 1. How much is the total manufacturing costs for January? 2. Give the entry to record the closing of over-underapplied overhead for the period. 3. How much is the adjusted ending Work-in-Process Inventory? 4. How much is the Net income for January?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS