EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 20, Problem 2PSA
a.
To determine
Job order costing:
Job order costing is a cost evaluation method that considers each job separate and assigns costs to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To prove: Agreement of Work in Process and calculate other factors.
b.
To determine
Job order costing:
Job order costing is a cost evaluation method that considers each job separate and assigns costs to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To prepare: The
c.
To determine
Job order costing:
Job order costing is a cost evaluation method that considers each job separate and assigns costs to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To compute: Gross profit for the period.
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Students have asked these similar questions
For the year ended December 31, 2022, the job cost sheets of Cullumber Company contained the following data.
Job
Number
7640
7641
7642
Other data:
1.
2.
3.
Explanation
4.
Balance 1/1
Current year's costs
Balance 1/1
Current year's costs
Current year's costs
Direct
Materials
$32,000
38,400
14,080
Raw materials inventory totaled $19,200 on January 1. During the year, $179,200 of raw materials were purchased on account.
Finished goods on January 1 consisted of Job No. 7638 for $111,360 and Job No. 7639 for $117,760.
Job No. 7640 and Job No. 7641 were completed during the year.
Job Nos. 7638, 7639, and 7641 were sold on account for $678,400.
5. Manufacturing overhead incurred on account totaled $153,600.
6.
Incurred depreciation on factory machinery $10,240.
7. Assigned indirect materials of $17,920 and indirect labor of $23,040.
55,040
74,240
Direct Manufacturing
Labor
Overhead
$30,720
46,080
23,040
61,440
70,400
Total
Costs
$36,864
$99,584
55,296
139,776
27,648 64,768
73,728 190,208…
Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $325,000 and direct labor hours of 9,800. During the month of February 2019, actual direct labor hours of 8,100 were incurred. Use this information to determine the amount of factory overhead that was applied in February.
. The Sun Company uses the job-order costing system. The following data relate to October, The first month of the company’s fiscal year.
Raw material purchased on account $210,000
Raw material issued to production $190,000 ( 178,000 Direct material)
Direct labor cost incurred, $90,000 and Indirect labor, $110,000
Depreciation recorded the factory equipment, $40,000
Other manufacturing overhead cost incurred during October, $ 70,000 (Credit account payable)
The Company apples manufacturing overhead cost to production on the basis of $8 per machine-hour. Total 30,000 machine-hour were recorded for October.
Production orders $ 520,000 according to their job cost sheets were completed during October and transferred to finished goods.
Production orders that had cost $480,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 25% above cost.
Required:
Prepare journal entries to records transactions given above.…
Chapter 20 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 20 - Prob. 1QCh. 20 - Prob. 2QCh. 20 - Prob. 3QCh. 20 - Prob. 4QCh. 20 - Prob. 5QCh. 20 - Prob. 6QCh. 20 - Prob. 7QCh. 20 - Prob. 8QCh. 20 - Prob. 9QCh. 20 - Prob. 10Q
Ch. 20 - Prob. 11QCh. 20 - Prob. 12QCh. 20 - Prob. 13QCh. 20 - Prob. 14QCh. 20 - Prob. 15QCh. 20 - Prob. 16QCh. 20 - Prob. 17QCh. 20 - Prob. 18QCh. 20 - Prob. 1BECh. 20 - Prob. 2BECh. 20 - Prob. 3BECh. 20 - Prob. 4BECh. 20 - BE20-5 Data pertaining to job cost sheets for...Ch. 20 - Prob. 6BECh. 20 - Prob. 7BECh. 20 - Prob. 8BECh. 20 - Prob. 9BECh. 20 - Prob. 10BECh. 20 - Prob. 1DIECh. 20 - Prob. 2DIECh. 20 - Prob. 3DIECh. 20 - Prob. 4DIECh. 20 - Prob. 5DIECh. 20 - Prob. 1ECh. 20 - E20-2 Stine Company uses a job order cost system....Ch. 20 - Prob. 3ECh. 20 - Prob. 4ECh. 20 - Prob. 5ECh. 20 - Prob. 6ECh. 20 - Prob. 7ECh. 20 - Prob. 8ECh. 20 - Prob. 9ECh. 20 - Prob. 10ECh. 20 - Prob. 11ECh. 20 - Prob. 12ECh. 20 - Prob. 13ECh. 20 - Prob. 1PSACh. 20 - Prob. 2PSACh. 20 - Prob. 3PSACh. 20 - Prob. 4PSACh. 20 - Prob. 1EYCTCh. 20 - Prob. 2EYCTCh. 20 - Prob. 3EYCTCh. 20 - Prob. 4EYCTCh. 20 - Prob. 5EYCTCh. 20 - Prob. 7EYCT
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- Entries for costs in a job order cost system Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: A. Materials purchased on account, 770,000. B. Materials requisitioned, 680,000, of which 75,800 was for general factory use. C. Factory labor used, 756,000, of which 182,000 was indirect. D. Other costs incurred on account for factory overhead, 245,000; selling expenses, 171,500; and administrative expenses, 110,600. E. Prepaid expenses expired for factory overhead were 24,500; for selling expenses, 28,420; and for administrative expenses, 16,660. F. Depreciation of factory equipment was 49,500; of office equipment, 61,800; and of office building, 14,900. G. Factory overhead costs applied to jobs, 568,500. H. Jobs completed, 1,500,000. I. Cost of goods sold, 1,375,000. Instruction Journalize the entries to record the summarized operations.arrow_forwardThe cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?arrow_forwardLorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580arrow_forward
- During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.arrow_forwardA company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?arrow_forwardGerken Fabrication Inc. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of March: a. Compute the total production cost of each job. b. Prepare the journal entries to charge the costs of materials, labor, and factory overhead to Work in Process. c. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. d. Compute the unit cost of each job. e. Compute the selling price per unit for each job, assuming a mark-on percentage of 50%.arrow_forward
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