Question
In: Finance
Creative Web Design uses a job-order costing system to track the costs of its web design...
Creative Web Design uses a job-order costing system to track the costs of its web design projects. The company provides complete website design and hosting services. The following table provides data concerning the three design projects that were in process during May. There was no work in process at the beginning of May:
| Project | |||||||||
| Car City |
Jan’s Flowers |
Happy Daycare |
|||||||
| Designer-hours | 90 | 70 | 25 | ||||||
| Direct labour cost | $ | 2,430 | $ | 1,960 | $ | 950 | |||
Actual overhead costs were $4,750 for May. Overhead costs are applied to projects on the basis of designer-hours. The predetermined overhead rate is $27 per designer-hour. The Car City and Jan’s Flowers projects were completed in May; the Happy Daycare project was not completed by the end of the month. No other jobs were in process during May.
Required:
1. Compute the amount of overhead cost that would have been charged to each project during May.
2. Prepare a journal entry showing the completion of the Car City and Jan’s Flowers projects and the transfer of costs to the Completed Projects (i.e., Finished Goods) account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3. What is the balance in the Work in Process account at the end of the month?
4-a. What is the balance in the Overhead account at the end of the month?
4-b. What is this balance called?
-
Overapplied overhead
-
Underapplied overhead
Solutions
jeff jeffy answered 4 months agoRelated Solutions
The basic document for keeping track of costs in a job order costing system is a...
The basic document for keeping track of costs in a job order
costing system is a
a.
process cost report.
b.
job order cost card.
c.
labor time card.
d.
materials requisition form.
Which of the following products probably would be manufactured
using a job order costing system?
a.
Computer monitors
b.
Baseball bats
c.
Company business cards
d.
Paper
Which of the following is not a characteristic of a
process costing system?
a.
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McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the clock monitoring of
patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the clock monitoring of
patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
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