Question
In: Accounting
Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on...
-
Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $250,000 in Overhead and 50,000 direct labor hours. Pribil worked on five jobs in March. Data are as follows:
|
Job 89 |
Job 90 |
Job 91 |
Job 92 |
Job 93 |
|
|
Balance, 3/1 |
$23,110 |
$18,240 |
$ 9,510 |
$0 |
$0 |
|
Direct Materials |
13,000 |
17,210 |
22,900 |
15,240 |
8,210 |
|
Direct Labor cost |
8,075 |
11,500 |
16,250 |
9,750 |
4,860 |
|
Direct Labor Hours |
1,615 |
2,300 |
3,250 |
1,950 |
972 |
By March 31, Jobs 89 and 91 were completed and sold at Cost plus 55%. The rest of the jobs remained in process.
Calculate the plantwide overhead rate.
-
Create Job Cost Reports for the month.
-
Calculate the Work-in-Process on March 31 and COGS.
-
Income Statement for the Month of March
Solutions
Expert Solution
| Answer | |||||
| Predetermined Overhead rate= | |||||
| Estimated Overhead/Estimated Direct Labor Hours | |||||
| 420000/30000 | |||||
| 14.00 per hour |
| A) | Job Costing Report | |||||
| Job 89 | Job 90 | Job 91 | Job 92 | Job 93 | ||
| Opening balance | $ 23,110 | $ 18,240 | $ 9,510 | $ - | $ - | |
| Direct Materials | $ 13,000 | $ 17,210 | $ 22,900 | $ 15,240 | $ 8,210 | |
| Direct Labor | $ 8,075 | $ 11,500 | $ 16,250 | $ 9,750 | $ 4,860 | |
| Overhead | 22610(1615*14) | 32200(2300*14) | 45500(3250*14) | 27300(1950*14) | 13608(972*14) | |
| Total Costs | $ 66,795 | $ 79,150 | $ 94,160 | $ 52,290 | $ 26,678 | |
| B) | Job 89 | Job 90 | Job 91 | Job 92 | Job 93 | |
| Total Costs | $ 66,795 | $79,150 | $94,160 | $52,290 | $26,678 | |
| Completed and sold | $ 66,795 | $ - | $94,160 | $ - | $ - | |
| Closing balance WIP | $ - | $79,150 | $ - | $52,290 | $26,678 | |
| COGS (66795+94160) | $1,60,955 | |||||
| Add: 55% markup | $ 88,525 | |||||
| Sales | $2,49,480 | |||||
| Since all other jobs are in progress value of finished goods is 0 | ||||||
| C) | Income Statement | |
| Sales | $ 2,49,480 | |
| Less: COGS | $ 1,60,955 | |
| Net Income | $ 88,525 | |
| Please like ( Positive Rating ) | ||
ekkarill92 answered 2 years agoRelated Solutions
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Pribil Farm Equipment is a job-order costing manufacturer that
uses a plantwide overhead rate based on direct labor hours.
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Job 90
Job 91
Job 92
Job 93
Balance, 3/1
$23,110
$18,240
$ 9,510
$ 0
$ 0
Direct materials
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22,900
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Direct labor cost
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