Question

Need answers in clear hand writing notes. If you can then attempt my questions other wise don't attempt my questions.

Job cost sheets for Isabella Manufacturing are as follows:

            Job No 210                                                                             Quantity    1,500

                                                                                                      Manufacturing

            Date       Direct Materials              Direct Labor                Overhead  

            July   1               9,000                           8,000                         12,000

                      8               8,500

                    10                                                 10,000

                    15               5,500

                    25                                                 20,000

            Job No 211                                                                             Quantity    1,200

                                                                                                      Manufacturing

            Date       Direct Materials              Direct Labor                Overhead  

            July   1               5,000                           6,000                           9,000

                    10               9,000

                    15                                                   8,000

                    20               7,000

                    27                                                 12,000

Instructions

(a)   Answer the following questions.

        1. What was the balance in Work in Process Inventory on July 1 if these were the only unfinished jobs?

        2. What was the predetermined overhead rate in June if overhead was applied on the basis of direct labor cost?

        3. If July is the start of a new fiscal year and the overhead rate is 20% higher than in the preceding year, how much overhead should be applied to Job 210 in July?

        4. Assuming Job 210 is complete, what is the total and unit cost of the job?

        5. Assuming Job 211 is the only unfinished job at July 31, what is the balance in Work in Process Inventory on this date?

(b)   Journalize the summary entries to record the assignment of costs to the jobs in July.             (Note: Make one entry in total for each manufacturing cost element.)

Answer 1

Answer :-

Factory labor during July = $10,000 + $ 20,000 + $8,000 + $12,000

Factory labor during July = $ 50,000

Manufacturing Overhead during July = $54,000 + $36,000 = $90,000

If you have any queries please comment I will solve the queries.