ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
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
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.…
During the month of January 2020, the job-cost record for Job 123 shows the following:
Job 123:
Machine Department
Assembly Department
Manufacturing overhead costs
19 500
7 500
Direct manufacturing labor costs
1 350
1 875
Direct manufacturing labor-hours
30
105
Machine-hours
210
30
Compute the total manufacturing overhead cost allocated to Job 123.
Assume that Job 123 produced 450 units, calculate the cost per unit.
Chapter 20 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
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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- 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
- Entries and schedules for unfinished jobs and completed jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, 147,000. B. Materials requisitioned and factory labor used: C. Factory overhead costs incurred on account, 6,000. D. Depreciation of machinery and equipment, 4,100. E. The factory overhead rate is 40 per machine hour. Machine hours used: F. Jobs completed: 101, 102, 103, and 105. G. Jobs were shipped and customers were billed as follows: Job 101, 62,900; Job 102, 80,700; Job 105, 45,500. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.arrow_forwardOn August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Required: 1. Calculate the predetermined overhead rate based on direct labor cost. 2. Calculate the ending balance for each job as of August 31. 3. Calculate the ending balance of Work in Process as of August 31. 4. Calculate the cost of goods sold for August. 5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairles sales revenue for August.arrow_forwardThe books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)arrow_forward
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