Job Order Costing : The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method. Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains. To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains. To determine: The predetermined overhead rate.

Question

The standard rate per direct labor hour should

Answer 1

Question

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

(b)

To determine

To prepare: The job cost sheets.

(c)

To determine

To prepare: The journal entries to record the transactions.

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

(g)

To determine

To prepare: The T-account for the finished goods inventory.

(h)

To determine

The under or over applied overhead.

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The standard rate per direct labor hour should

L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: 1. Assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots? (Note: L.L. Bean most likely will make…

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Answer 2

Question

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

(b)

To determine

To prepare: The job cost sheets.

(c)

To determine

To prepare: The journal entries to record the transactions.

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

(g)

To determine

To prepare: The T-account for the finished goods inventory.

(h)

To determine

The under or over applied overhead.

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Answer 3

Question

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

(b)

To determine

To prepare: The job cost sheets.

(c)

To determine

To prepare: The journal entries to record the transactions.

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

(g)

To determine

To prepare: The T-account for the finished goods inventory.

(h)

To determine

The under or over applied overhead.

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Answer 4

Question

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

(b)

To determine

To prepare: The job cost sheets.

(c)

To determine

To prepare: The journal entries to record the transactions.

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

(g)

To determine

To prepare: The T-account for the finished goods inventory.

(h)

To determine

The under or over applied overhead.

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Answer 5

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

(b)

To determine

To prepare: The job cost sheets.

(c)

To determine

To prepare: The journal entries to record the transactions.

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

(g)

To determine

To prepare: The T-account for the finished goods inventory.

(h)

To determine

The under or over applied overhead.

Answer 6

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

Answer 7

Chapter 20, Problem 20.1AP

(a)

To determine

Job Order Costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The predetermined overhead rate.

Answer 8

(b)

To determine

To prepare: The job cost sheets.

Answer 9

(b)

To determine

To prepare: The job cost sheets.

Answer 10

(c)

To determine

To prepare: The journal entries to record the transactions.

Answer 11

(c)

To determine

To prepare: The journal entries to record the transactions.

Answer 12

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

Answer 13

(d)

To determine

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

Answer 14

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

Answer 15

(e)

To determine

To prepare: The job cost sheets showing the total and the entry to record the transaction.

Answer 16

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

Answer 17

(f)

To determine

To prepare: The entry to record the transaction of sale of any job.

Answer 18

(g)

To determine

To prepare: The T-account for the finished goods inventory.

Answer 19

(g)

To determine

To prepare: The T-account for the finished goods inventory.

Answer 20

(h)

To determine

The under or over applied overhead.

Answer 21

(h)

To determine

The under or over applied overhead.

Answer 22

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Ch. 20 - Prob. 1Q Ch. 20 - Prob. 2Q Ch. 20 - Prob. 3Q Ch. 20 - Prob. 4Q Ch. 20 - Prob. 5Q Ch. 20 - Prob. 6Q Ch. 20 - Prob. 7Q Ch. 20 - Prob. 8Q Ch. 20 - Prob. 9Q Ch. 20 - Prob. 10Q

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To prepare: The job cost sheets.

To prepare: The journal entries to record the transactions.

To prepare: The journal entries to record the transactions and posting of costs to the cost sheets.

To prepare: The job cost sheets showing the total and the entry to record the transaction.

To prepare: The entry to record the transaction of sale of any job.

To prepare: The T-account for the finished goods inventory.

The under or over applied overhead.

Chapter 20 Solutions