Question 3: Job Order Costing · Time: 25 minutes · Total: 10 marks Super Builders is...

Question 3: Job Order Costing

· Time: 25 minutes

· Total: 10 marks

Super Builders is a manufacturer of custom equipment and applies overhead to jobs on the basis of direct labour hours. Super Builders estimated $840,000 overhead costs and 60,000 direct labour hours for the year. Super Builders had 2 jobs in work in process inventory on January 1, 2015. The company started 2 more jobs during January. The following data was provided for January:

Job 102 Job 103 Job 104 Job 105

Balance Jan. 1, 2015 $36,480 $19,020 $0 $0

Direct Materials $34,420 $45,800 $30,480 $16,420

Direct Labour Cost $23,000 $32,500 $19,500 $9,720

Direct Labour Hours 4,600 6,500 3,900 1,944

By January 31, 2015, Job 102 and Job 103 were completed and Job 103 was sold. The rest of the jobs remained in process.

Required:

a. Calculate the plantwide overhead rate per direct labour hour.

b. Complete the job order cost sheets for all four jobs in January.

Job 102 Job 103 Job 104 Job 105

Beginning Balance

Direct Materials

Direct Labour

Overhead Applied

Total Cost

c. Calculate the work in process inventory on January 31, 2015: (1 mark)

d. Calculate the finished goods inventory on January 31, 2015. (1 mark)

e. Calculate the cost of goods sold for January. (1 mark)

f. Assume Super Builders applies 40% markup on cost. What is the selling price of Job 103? (1 mark)

Solutions

Expert Solution

Answer to Question a, b, c and d:

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Question 4 25 Marks Metrix Gold Ltd uses a job order costing system, with a predetermined...

Question 4 25 Marks Metrix Gold Ltd uses a job order costing system, with a predetermined overhead absorption rate based on machine hours. The corporation keeps only one set of books for cost and financial transactions. At the beginning of 2017, the firm estimated its manufacturing overheads for the year at N$65 200 and the machine hours at 9 150. The following are data uses on jobs worked on during December 2017: Details Job A Job B Job C Total...

Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs...

Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1300 units were actually produced. Standard Actual Materials: Standard: 2.6 metres at $2.30 per m. $5.98 Actual: 2.1 metres at $2.60 per m. $5.46 Direct labour: Standard: 2.2 hrs. at $7.90 per hr. 17.38 Actual: 1.7 hrs. at $8.50 per hr. 14.45 Variable overhead: Standard: 2.2 hrs. at $4.60 per...

Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs...

Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1400 units were actually produced. Standard Actual Materials: Standard: 2.6 metres at $2.30 per m. $5.98 Actual: 2.1 metres at $2.60 per m. $5.46 Direct labour: Standard: 2.2 hrs. at $7.90 per hr. 17.38 Actual: 1.7 hrs. at $8.50 per hr. 14.45 Variable overhead: Standard:...

Question (25 marks) : Provide reflections on job costing system of costing system in managerial accounting...

Question : Provide reflections on job costing system of costing system in managerial accounting unit. Reflections on your overall research experience from the individual assignment (e.g. looking for journal articles, reading and reviewing the literature etc.) What was enjoyable, what was difficult, and any challenges you experienced?

Job Order Costing: Define job order costing. Compare and contrast job order costing with process costing....

Job Order Costing: Define job order costing. Compare and contrast job order costing with process costing. Trace the flow of costs through a job order costing system. Discuss manufacturing overhead and how it is applied. Why is the manufacturing overhead account adjusted at the end of the period?

QUESTION 3 (25 MARKS) A national job placement company is interested in developing a model that...

QUESTION 3 A national job placement company is interested in developing a model that might be used to explain the variation in starting salaries for college graduates based on the college GPA score. The following data were collected through a random sample of the clients with which this company has been associated. GPA Score Starting Salary (RM) 3.20 3,500 3.40 2,950 2.90 3,000 3.60 3,640 2.80 3,150 2.50 2,900 3.00 3,320 3.60 3,760 2.90 3,200 3.50 3,600 Based on this...

Question 11 [10 marks / 10 minutes] For the mutations in the 5’ UTR of the...

Question 11 [10 marks / 10 minutes] For the mutations in the 5’ UTR of the trp operon given below, explain the effect on expression of the trp operon relative to wildtype (increased, decreased, or unchanged). Assume medium levels of tryptophan, such that TrpR (repressor) is inactive and attenuation is active. a) A mutation in region 2 such that it cannot bind with region 3. [4 marks] b) A mutation in region 4 such that it cannot bind with region...

Question 1 (10 Marks - Suggested time approx. 23 minutes) Northern Lights Company is considering the...

Question 1 (10 Marks - Suggested time approx. 23 minutes) Northern Lights Company is considering the purchase of a new machine. The invoice price of the machine is $140,000, freight charges are estimated to be $4,000, and installation costs are expected to be $6,000. Salvage value of the new equipment is expected to be zero after a useful life of 5 years. Existing equipment could be retained and used for an additional 5 years if the new machine is not...

Question 3 Process costing (25 marks) As part of your role, you provide Helen with the...

Question 3 Process costing As part of your role, you provide Helen with the costs of running her Cutting and Machining departments in July. Only skinny jeans were manufactured in July. All work is commenced in the Cutting Department and output is then transferred to the Machining Department. No direct material is added in the Machining Department but labour and overhead costs, including thread, rivets, buttons, and zippers are incurred uniformly throughout the process. Overhead is allocated based on 125%...

List a total of 5 similarities/differences between process costing and job order costing.

Subjects