Job Order Costing – Construction Company: Superior construction co. uses job order costing. Company records its overhead expenses into construction overhead account. Overhead are allocated based on predetermined allocation base. Predetermined Allocation Rate: Predetermine overhead allocation rate is which at a company allocates its overheads expenses to different jobs. This rate can be calculated on basis of direct labour cost, direct labour hours or total machine hours. To determine: 1. Compute the predetermined overhead allocation rate of Meadow for the year. 2. Journalize the events of Meadow Construction in general Journal. 3. Open T-accounts for Work-in-Process Inventory and Finished Goods Inventory and post the appropriate journal entries to these accounts. 4. Determine whether the total cost of unfinished houses and ending balance in the Work-in-Process Inventory account are equal or not. 5. Determine whether the total cost of completed house that has not yet been sold and the ending balance in Finished Goods Inventory are equal or not. 6. Compute the gross profit for the house sold and what costs must gross profit cover for Meadow Construction?

Question

Pteri Manufacturing makes a single product - the Pteri. Information for 2005 appears below: Sales in units: 200,000 Production in units: 250,000 Beginning inventory: 0 Variable production cost per unit: $1.00 Variable selling cost per unit: $0.30 Fixed production cost per year: $100,000 Fixed Selling and administrative cost per year: $50,000 Selling price per unit $3.00 What is the cost per unit of inventory using variable costing?

Answer 1

Question

Chapter 19, Problem P19.36BPGB

To determine

Job Order Costing – Construction Company:

Superior construction co. uses job order costing. Company records its overhead expenses into construction overhead account. Overhead are allocated based on predetermined allocation base.

Predetermined Allocation Rate:

Predetermine overhead allocation rate is which at a company allocates its overheads expenses to different jobs. This rate can be calculated on basis of direct labour cost, direct labour hours or total machine hours.

To determine:

1. Compute the predetermined overhead allocation rate of Meadow for the year.

2. Journalize the events of Meadow Construction in general Journal.

3. Open T-accounts for Work-in-Process Inventory and Finished Goods Inventory and post the appropriate journal entries to these accounts.

4. Determine whether the total cost of unfinished houses and ending balance in the Work-in-Process Inventory account are equal or not.

5. Determine whether the total cost of completed house that has not yet been sold and the ending balance in Finished Goods Inventory are equal or not.

6. Compute the gross profit for the house sold and what costs must gross profit cover for Meadow Construction?

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Pteri Manufacturing makes a single product - the Pteri. Information for 2005 appears below: Sales in units: 200,000 Production in units: 250,000 Beginning inventory: 0 Variable production cost per unit: $1.00 Variable selling cost per unit: $0.30 Fixed production cost per year: $100,000 Fixed Selling and administrative cost per year: $50,000 Selling price per unit $3.00 What is the cost per unit of inventory using variable costing?

Anderson Enterprises incurred the following costs while producing 500 units: direct materials, $15 per unit; direct labor, $37.50 per unit; variable manufacturing overhead, $22.50 per unit: total fixed overhead costs, $15,000; variable selling and administrative costs, $7.50 per unit: total fixed selling and administrative costs, $11,250. A. What is the per unit product cost using variable costing? B. What is the operating income using variable costing if 450 units are sold for $150 each?

Subject:- General Account