Question

In: Accounting

Question UPDATED (3 parts) Waterways has two major public-park projects to provide with comprehensive irrigation in...

Question UPDATED (3 parts)

Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December.

Raw materials were requisitioned from the company’s inventory on December 2 for $ 5,064; on December 8 for $ 1,068; and on December 14 for $ 3,450. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52.

Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $ 17.5 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52.

The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,093 hours, and the anticipated overhead costs are $ 837,200 for the year. The machines were used by workers on projects K52 and J57 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project J57 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 200 sprinkler heads for J57 and 100 sprinkler heads for K52.

Additional job order activities during this period included:

Dec. 1 Purchased raw materials from Durbin Supply Company on account for $ 53,100.
Dec. 2 Issued $ 40,400 of direct materials from the company’s inventory to jobs other than K52 and J57 and $ 3,000 of indirect materials.
Dec. 12 Paid Waterways’ factory salaries and wages for $ 65,100.
Dec. 13 Paid the factory’s water bill of $ 8,900.
Dec. 18 Transferred $ 50,500 of costs from other completed jobs to finished goods.
Dec. 21 Paid the factory’s electric bill of $ 12,000 for Waterways’ factory.
Dec. 31 Made adjusting entries forth factory that included accrued property taxes of $ 11,900, prepaid insurance of $ 8,700, and accumulated depreciation of $ 15,900.

Part 1

Set up the job cost sheets for Job No. J57 and Job No. K52. Determine the total cost for each manufacturing special order for these jobs. (Round unit costs to 2 decimal places, e.g. 12.25.)

Job No. J57 Job No. K52
Total Cost

$

$

Unit Cost

$

$

Part 2

Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

(To assign materials to jobs J57 & K52)

12/2

(To assign materials to jobs and overhead)

(To assign labor to jobs J57 & K52)

(To assign overhead to jobs J57 & K52)

(To assign labor to jobs J57 & K52)

(To assign overhead to jobs J57 & K52)

(To assign labor to jobs J57 & K52)

(To assign overhead to jobs J57 & K52)

(To record completion of jobs J57 & K52)

Part 3

Assuming that Manufacturing Overhead has a debit balance of $ 3,600, determine whether overhead has been under/over applied and make the adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Solutions

Expert Solution

thank you and give positive rating please....


Related Solutions

Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service...
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company’s inventory on December 2 for $5,058; on December 8 for $1,056; and on December 14...
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service...
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company’s inventory on December 2 for $5,019; on December 8 for $1,059; and on December 14...
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service...
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company’s inventory on December 2 for $5,016; on December 8 for $1,050; and on December 14...
This question has two parts Part 1 You are CFO of a major chain of restaurants...
This question has two parts Part 1 You are CFO of a major chain of restaurants called Chipotle. In an increasingly challenging business environment, Chipotle is considering an acquisition of its major competitor, Los Pollos Hermanos (LPH). Your research indicates that LPH is expected to generate a positive cashflow of $186 million per year for each of the next 20 years. The first of the annual cashflows will be received one year from today. You estimate that an appropriate opportunity...
This question has two parts: (250 words) 1. Describe the roles of public health professionals in...
This question has two parts: (250 words) 1. Describe the roles of public health professionals in war and conflict. 2. Describe the roles of public health professionals in preventing war.  
Question 4 – Undergraduate Degree and MBA Major (3 parts, 14 marks) The MBA program was...
Question 4 – Undergraduate Degree and MBA Major (3 parts, 14 marks) The MBA program was experiencing problems scheduling its courses. The demand for the program’s optional courses and majors was quite variable from one year to the next. In one year, students seem to want marketing courses; in other years, accounting or finance are the rage. In desperation, the dean of the business school turned to a Statistics professor for assistance. The Statistics professor believed that the problem may...
Question 1. (This question has two parts: a and b) Assume that the United States and...
Question 1. (This question has two parts: a and b) Assume that the United States and Cambodia both have similar demand functions and similar taste preferences. The United States however is capital abundant while Cambodia is labour abundant. Assume that the two countries produce only two goods: capital-intensive cars and labour-intensive shoes. Currently, the two countries are in the process of negotiating a bilateral free trade agreement (FTA). Part (a) Use the concepts of supply and demand to illustrate the...
This question has 3 parts each worth 10 point. This question is related to the monetary...
This question has 3 parts each worth 10 point. This question is related to the monetary policy. i) (10 points) What is the difference between a stimulative monetary policy and a restrictive monetary policy? In what circumstances should each of the policies be used? ii) (10 points). Discuss the effect of an expansive (stimulative) monetary on the cost of debt, on the cost of equity, and total cost of capital of a firm? iii) (10 points). During the initial recovering...
I have a question that has 3 parts to it and I'm not sure about the...
I have a question that has 3 parts to it and I'm not sure about the answers. Could someone please give me the answers and maybe explain a little as well? Would be greatly appreciated! Question 1: Part A) Suppose Home has 500 units of capital and 250 units of labor and Foreign has 1000 units of capital and 3000 units of labor. Which of the following statements is true? a) Home is more capital abundant than Foreign b) Foreign...
Please answer both parts of the question, and provide detail The Nelson Company has $1,495,000 in...
Please answer both parts of the question, and provide detail The Nelson Company has $1,495,000 in current assets and $650,000 in current liabilities. Its initial inventory level is $455,000, and it will raise funds as additional notes payable and use them to increase inventory. 1. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.4? Round your answer to the nearest cent. 2. What will be the firm's quick ratio after Nelson has raised...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT