Question

In: Accounting

Hanover Products manufactures screws and bolts made to customer specifications. During August, they incurred the following...

Hanover Products manufactures screws and bolts made to customer specifications. During August, they incurred the following manufacturing costs: ? Direct materials $28,019 ? Direct labor $15,276.75 ? Applied factory overhead $9,854.50 The following data pertain to these costs: Summary of Direct Materials Requisitions

Dept #

Job #

Req #

Quantity

Cost per unit

1

8961

M66r

2,675

$2.23

2

8962

M67r

125

18.78

1

8963

M68r

780

8.29

1

8961

M69r

289

5.72

2

8963

M70R

95

22.07

1

8964

M71r

2,945

3.24

Summary of Direct Labor Time Tickets

Dept #

Job #

Ticket #

Hours

Rate per hr

1

8961

1056-1166

770

$7.25

1

8962

1167-1173

50

7.25

2

8962

2121-2130

92

8.75

1

8963

1174-1189

178

7.25

2

8963

2131-2134

44

8.75

1

8964

1190-1230

945

7.25

The overhead application rate is $4 per direct labor hour for Dept 1 and 175% of direct labor cost for Dept 2. The company had no beginning work in process for August, Job 8958, which cost $14,190.18 to manufacture, was completed in July and was sold on account in August for $19,000. The job cost sheet for this job is shown on below. Of the jobs begun in August, Job 8961 was completed and sold on account for $24,000,

ACG2071 - 2185

Page 2 of 2

Job 8962 and 8964 was completed but not sold and Job 8963 was still in process.

Hanover Products

Job #

Job Cost Sheet

Direct Materials

Dept #

Req. #

Quantity

Cost/Unit

Total

Formula

Formula

Formula

Formula

Direct Labor

Dept #

Ticket #

Quantity

Rate

Total

Formula

Formula

Formula

Applied Factory Overhead

Dept #

Basis

Hours

Cost

Rate

Total

1

DL Hrs

Formula

XXX

$4

Formula

2

DL cost

xxxx

Formula

175%

Formula

Formula

Total Factory Cost

Total

Formula

Solutions

Expert Solution


Related Solutions

Williams manufactures a variety of iron products, made to customer specifications, in small batches. Willie Williams,...
Williams manufactures a variety of iron products, made to customer specifications, in small batches. Willie Williams, owner, is concerned that he does not have an accurate understanding of the costs of production. You, a newly-minted MBA, have researched his business and identified various costs and cost drivers. Janitorial Welding HR Data Svcs       Assembly Total Own costs $ 12,000 $ 90,000 $ 37,200 $ 32,400 $ 54,000 $ 225,600 Square feet 500 3,000 1,500 2,000 4,500 11,500 # employees 7...
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production...
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 77,000 $ 40,000 Work in process 66,000 42,000 Finished goods 115,000 100,000 Other information Direct materials purchases $ 324,000 Cost of goods available for sale 950,000 Actual factory overhead costs 260,000 The...
Catlett Company manufactures products to customer specifications. A job costing system is used to accumulate production...
Catlett Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 120% of direct labor cost. Selected data concerning operations of the company are presented below. Direct Materials Inventory, Beginning $ 88,000 Direct Materials Inventory, Ending 75,000 Direct Materials Purchases 395,000 Direct Labor 300,000 Finished Goods Inventory, Beginning 137,000 Finished Goods Inventory, Ending 130,000 Actual Factory Overhead 322,000 Work-in-Process Inventory, Beginning 72,000 Work-in-Process Inventory, Ending 55,000 Required: Prepare...
Philadelphia Fastener Corporation manufactures nails, screws, bolts, and other fasteners. Management is considering a proposal to...
Philadelphia Fastener Corporation manufactures nails, screws, bolts, and other fasteners. Management is considering a proposal to acquire new material-handling equipment. The new equipment has the same capacity as the current equipment but will provide operating efficiencies in labor and power usage. The savings in operating costs are estimated at $150,000 annually. The new equipment will cost $300,000 and will be purchased at the beginning of the year when the project is started. The equipment dealer is certain that the equipment...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,151,400 in manufacturing overhead cost at an activity level of 561,000 machine-hours. The company spent the entire month of January working on a large order for 12,500 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,290,000 in manufacturing overhead cost at an activity level of 572,000 machine-hours. The company spent the entire month of January working on a large order for 12,800 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,158,800 in manufacturing overhead cost at an activity level of 562,000 machine-hours. The company spent the entire month of January working on a large order for 12,500 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,215,000 in manufacturing overhead cost at an activity level of 562,000 machine-hours. The company spent the entire month of January working on a large order for 12,900 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,232,800 in manufacturing overhead cost at an activity level of 572,000 machine-hours. The company spent the entire month of January working on a large order for 12,300 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,320,000 in manufacturing overhead cost at an activity level of 576,000 machine-hours. The company spent the entire month of January working on a large order for 12,900 custom-made machined parts. The company had no work...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT