ACCT.PRINCIPLES (LL)
ACCT.PRINCIPLES (LL)
14th Edition
ISBN: 9781119707110
Author: Weygandt
Publisher: WILEY
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Chapter 20, Problem 3E

(a)(1)

To determine

Job order costing:

Job order costing is a method of cost accounting, in which cost is collected and accumulated for each job, work order, or project separately. Especially the job order costing is followed in organizations where customized goods are produced.

To determine: The balance in work in process inventory on January 1 if the given job was the only unfinished job.

(a)(2)

To determine

The overhead rate used in each year.

(b)

To determine

To prepare: The journal entries at January 31 to record the current year’s transactions pertaining to Job No. 92.

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At the beginning of the year, manufacturing overhead for the year was estimated to be $800,000. At the end of the year, actual labor hours for the year were 40,000 hours, the actual manufacturing overhead for the year was $775,000, and the manufacturing overhead for the year was overapplied by $25,000. If the predetermined overhead rate is based on direct labor hours, then the estimated labor hours at the beginning of the year used in the predetermined overhead rate must have been ___ Hours.
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