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Malibu Boats Inc. uses a job order cost accounting system and keeps perpetual inventory records. The...

Malibu Boats Inc. uses a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations:

  1. Purchased raw materials on account, $230,000.

2. An analysis of the requisitions shows the following: Direct materials requisitioned during the month:

              Job 101     $26,000

              Job 102      19,000

              Job 103      31,000

   $76,000

  1. Factory labor costs incurred were $85,000 of which $71,000 pertained to factory wages payable and $14,000 pertained to employer payroll taxes payable.

   4. An analysis of the time tickets indicated the following: Direct labor incurred and charged to jobs during the month was:

              Job 101     $31,000

              Job 102      27,000

              Job 103      24,000

$82,000

  1. Incurred manufacturing overhead costs as follows: indirect labor $12,000, indirect materials $7,000, and depreciation $9,000. Also, incurred $68,000 of manufacturing overhead costs on account.
  2. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 101% of direct labor costs. show computations
  3. Job 101 and Job 103 were completed during the month. (Note: show your work in part b. below.)
  4. Job 101 was sold on account for $115,000.

Instructions:

  1. Prepare journal entries to record the above transactions.
  2. Compute the cost of Job 101, Job 102 and Job 103.
  3. Compute the balance in the Work-in-Process account at the end of the month.
  4. Compute the amount of over/under applied overhead.

Solutions

Expert Solution


jeff jeffy answered 1 year ago
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