2. On July 1, Kauffman Oddjobs had two jobs in process as listed below. Job Number...

2. On July 1, Kauffman Oddjobs had two jobs in process as listed below.

Job Number Material costs Labor hours

501 1,068 65

504 2,280 240

Before the year began, Kauffman CFO estimated that total overhead costs for the year would be $377,000 and that he would be able to bill 65,000 direct labor hours of time. Workers at Kauffman are paid 21 per hour. It appears that actual overhead costs for the year will be $389,500 and that Kauffman will bill 64,700 direct labor hours.

During July, Kauffman worked on the following job and incurred the following:

Job Number Material Costs Labor hours

501 $3,640 80

504 4,280 175

506 2,870 134

507 5,450 240

At month end, jobs 501 and 507 were still in process, jobs 504 and 506 were completed and delivered.

A. What is the predetermined overhead rate used by Kauffman?

B. What was the total cost of beginning work in process inventory?

C. What is the value in ending work in process inventory on July 31?

D. What was cost of goods manufactured for july?

Solutions

Expert Solution

ekkarill92 answered 11 months ago

Next > < Previous

Related Solutions

At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job...

At the beginning of June, Rhone Company had two jobs in process, Job 44 and Job 45, with the following accumulated cost information: Job 44 Job 45 Direct materials $5,250 $1,600 Direct labor 1,500 3,300 Applied overhead 1,125 2,475 Balance, June 1 $7,875 $7,375 During June, two more jobs (46 and 47) were started. The following direct materials and direct labor costs were added to the four jobs during the month of June: Job 44 Job 45 Job 46 Job...

Pincus Corporation, which uses a job-costing system, had two jobs in process at the start of...

Pincus Corporation, which uses a job-costing system, had two jobs in process at the start of 20x1: job no. 59 ($95,000) and job no. 60 ($39,500). The following information is available: • The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $720,000 and 20,000 hours, respectively. • The company worked on three jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours...

Southwestern Fashions, Inc. which uses a job-order costing system, had two jobs in process at the...

Southwestern Fashions, Inc. which uses a job-order costing system, had two jobs in process at the start of the year: job no. 101 ($84,100) and job no. 102 ($53,300). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $824,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials...

Polo Manufacturing Company has two jobs in the process – Job 10 and Job 11. Job...

Polo Manufacturing Company has two jobs in the process – Job 10 and Job 11. Job Cost Sheets are placed on the Answers Sheets. Company applies factory overhead using activity based costing. The predetermined overhead rates for activities are as follows: Machine Setup Activity Inspection Activity Overhead Rate $120 per machine setup $75 per inspection On the space provided on the answer sheet, provide journal entries for the following transactions. Complete Job Cost Sheets as needed. If you wish, you may...

ABC Company uses a job order costing system and had three jobs in process at the...

ABC Company uses a job order costing system and had three jobs in process at the beginning of the month. The beginning balance in the WIP account was $145,400, made up of $42,400, $65,100, and $37,900 as shown on the cost sheets for Jobs 921, 922, and 923 respectively. During the month, ABC added the following materials and labor costs to each job. Inventory Materials used for Month Labor Dollars used for Month Job 921 12,200 30,000 Job 922 13,400...

1. Alice has 2 jobs that she will process sequentially. The first job takes an exponential...

1. Alice has 2 jobs that she will process sequentially. The first job takes an exponential amount of time with a mean of 15 minutes. Once the first job is completed, then we start working on the second job. The second job also takes an exponential amount of time to complete with a mean of 15 minutes. (a) Let T be the total time to complete both jobs. Give the distribution of T, its mean and its standard deviation. (b)...

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1...

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1 Ajayi Art, Inc. is started with an investment of $250,000 cash. July 1 Ajayi purchases office equipment for $22,250 by signing a 10% note (interest and principal to be paid over the next 12 months). July 6 Pays rent for the art gallery in advance for the next three months with a check for $3,000. July 8 Purchases art supplies from Wacky Art Co....

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1...

Listed below are the transactions for Ajayi Art, Inc. for the month of July: July 1 Ajayi Art, Inc. is started with an investment of $275,000 cash. July 1 Ajayi purchases office equipment for $22,500 by signing a 10% note (interest and principal to be paid over the next 12 months). July 6 Pays rent for the art gallery in advance for the next three months with a check for $3,030. July 8 Purchases art supplies from Wacky Art Co....

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q.

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data...

At the beginning of the month, Arthur's Olde Consulting Corporation had two jobs in process that...

At the beginning of the month, Arthur's Olde Consulting Corporation had two jobs in process that had the following costs assigned from previous months: Job Number Direct Labor Applied Overhead SY-400 $ 23,990 ? SY-403 16,070 ? During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required $27,100 in direct labor. For SY-403, $81,500 in labor was used. During the month, the only new job, SY-404, was started but not...

Subjects