Question
In: Accounting
A manufacturing company employs job order costing to account for its costs. There are two production...
A manufacturing company employs job order costing to account for its costs. There are two production departments, and separate departmental overhead application rates are employed because the operations of the departments are distinct. All jobs generally pass through both production departments. Data regarding the hourly direct labor rates, overhead application rates, and three jobs on which work was done during the month appear below. Job 101 and Job 102 were completed during the current month. (CIA Examination adapted)
|
Production Departments |
Direct Labor Rate / hr |
MOH Rate |
|
|
Department 1 |
$21.00 |
50% |
of direct materials |
|
Department 2 |
$26.00 |
75% |
of direct labor cost |
|
Job 101 |
Job 102 |
|
|
Beginning Work-in-Process |
$25,500 |
$32,400 |
|
Direct materials added: |
||
|
Department 1 |
$40,000 |
$26,000 |
|
Department 2 |
$3,000 |
$5,000 |
|
Direct labor hours added: |
||
|
Department 1 |
500 |
400 |
|
Department 2 |
200 |
250 |
QUESTION: What is the total manufacturing cost of Job 102? (Round to the nearest dollar.)
QUESTION: What are the total manufacturing costs added to Job 101 in Department 2? (Round to the nearest dollar.)
QUESTION: What is the total manufacturing cost of Job 101? (Round to the nearest dollar.)
QUESTION: What are the total manufacturing costs added to Job 102 in Department 2? (Round to the nearest dollar.)
QUESTION: What are the total manufacturing costs added to Job 101 in Department 1? (Round to the nearest dollar.)
Solutions
Expert Solution
1) Total manufacturing cost of Job 102
| Job 102 | |
| Beginning WIP | 32400 |
| Dept 1 (26000+400*21+26000*50%) | 47400 |
| Dept 2 (5000+250*26+6500*75%) | 16375 |
| Total manufacturing cost | 96175 |
2) Total manufacturing cost added to Job 101 in Department 2
| Job 101 | |
| Direct material | 3000 |
| Direct labor (200*26) | 5200 |
| Overhead (5200*75%) | 3900 |
| Total manufacturing cost | 12100 |
3) Total manufacturing cost of Job 101
| Job 101 | |
| Beginning WIP | 25500 |
| Dept 1 (40000+500*21+40000*50%) | 70500 |
| Dept 2 ( | 12100 |
| Total manufacturing cost | 108100 |
4) Total manufacturing Costs added to Job 102 in Department 2
| Direct material | 5000 |
| Direct labor (250*26) | 6500 |
| Overhead (6500*75%) | 4875 |
| Total manufacturing cost | 16375 |
5) Total manufacturing cost added to Job 101 in Department 1
| Dept 1 | |
| Direct material | 40000 |
| Direct labor (500*21) | 10500 |
| Overhead (10500*50%) | 5250 |
| Total manufacturing cost added | 55750 |
ekkarill92 answered 1 year agoRelated Solutions
The QuickRead Manufacturing Company uses a Job Order Costing System to record production costs. Overheads are...
The QuickRead Manufacturing Company uses a Job Order Costing
System to record production costs. Overheads are applied to each
job on the basis of direct labour hours. Information pertaining to
this company for 2014 is as follows: Estimated Labour Hours 62,000
hours Estimated Factory Overheads $ 310,000 Actual Expenses for
December were: Direct Materials Used $ 62,000 Direct Labour
Incurred (3,500 hours) $ 33,600 Factory Utilities $ 2,500 Equipment
Depreciation $ 3,000 Indirect Labour & Materials $ 6,200 Other
overheads...
Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet...
Morrison Company uses a job-order costing system to assign
manufacturing costs to jobs. Its balance sheet on January 1 is as
follows:
Morrison Company
Balance Sheet
January 1
Assets
Cash
$
37,950
Raw materials
$
9,900
Work in process
8,350
Finished goods
31,800
50,050
Prepaid expenses
2,600
Property, plant, and equipment (net)
120,000
Total assets
$
210,600
Liabilities and Stockholders’ Equity
Accounts payable
$
16,200
Retained earnings
194,400
Total liabilities and stockholders’ equity
$
210,600
During January the company completed...
Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet...
Morrison Company uses a job-order costing system to assign
manufacturing costs to jobs. Its balance sheet on January 1 is as
follows:
Morrison Company
Balance Sheet
January 1
Assets
Cash
$
43,950
Raw materials
$
15,200
Work in process
6,100
Finished goods
24,000
45,300
Prepaid expenses
3,125
Property, plant, and equipment (net)
158,000
Total assets
$
250,375
Liabilities and Stockholders’ Equity
Accounts payable
$
7,300
Retained earnings
243,075
Total liabilities and stockholders’ equity
$
250,375
During January the company completed...
Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet...
Morrison Company uses a job-order costing system to assign
manufacturing costs to jobs. Its balance sheet on January 1 is as
follows:
Morrison Company
Balance Sheet
January 1
Assets
Cash
$
40,500
Raw materials
$
15,100
Work in process
6,300
Finished goods
22,650
44,050
Prepaid expenses
3,200
Property, plant, and equipment (net)
140,000
Total assets
$
227,750
Liabilities and Stockholders’ Equity
Accounts payable
$
12,100
Retained earnings
215,650
Total liabilities and stockholders’ equity
$
227,750
During January the company completed...
Sterling Products Company uses a job- order costing system. The company incurred the following manufacturing costs...
Sterling Products Company uses a job- order costing system. The
company incurred the following manufacturing costs during
March:
a. Purchased materials on credit,$58,800.
b. Issued materials to production as follows: direct,$51,000;
indirect,$111,300.
c. Incurred factory wages,$59,400.
d. Allocated factory wages to production as follows:
direct,$45,000;indirect,$14,900.
e. incurred factory overhead costs on account,$2,500.
f. Recognized other factory overhead costs as follows:
depreciation of equipment,$4,00; depreciation of
building,$5,000;expired insurance,$600; accrued property taxes,
$1,800.
g. Applied factory overhead to production,$32,500.
h. completed jobs...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows.
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,200,000
$
1,440,000
$
1,680,000
Fixed overhead costs
612,000
612,000
612,000
Total overhead
$
1,812,000
$
2,052,000
$
2,292,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,050,000
$
1,260,000
$
1,470,000
Fixed overhead costs
684,000
684,000
684,000
Total overhead
$
1,734,000
$
1,944,000
$
2,154,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows.
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead costs
630,000
630,000
630,000
Total overhead
$
1,530,000
$
1,710,000
$
1,890,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct
labor-hours
150,000
180,000
210,000
Variable
overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead
costs
702,000
702,000
702,000
Total
overhead
$
1,602,000
$
1,782,000
$
1,962,000
The expected volume is 180,000 direct...
a Kansas Company uses a job costing accounting system for its production costs. The company uses...
a
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,050,000
$
1,260,000
$
1,470,000
Fixed overhead costs
594,000
594,000
594,000
Total overhead
$
1,644,000
$
1,854,000
$
2,064,000
The expected volume is 180,000...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- identify one intrapersonal relationship and evaluate its component.
- Using Python in vs code: The distribution of letters in a document has a distinctive and...
- Why is De Beers exploring the diamond reselling market? How does the creation of IIDV affect...
- programming in Python The body mass index (BMI) is calculated as a person’s weight (in lb)...
- 1. Show the steps in merging A and B into C where A= 8, 12, 19,...
- 1. Given the following information, determine the beta coefficient for Stock L that is consistent with...
- Generate the first ten rows of Pascal triangle using MATLAB. Post code in the response
ADVERTISEMENT