Acct Chap 13 Kimmel

Only available on StudyMode
  • Download(s) : 393
  • Published : January 16, 2012
Open Document
Text Preview
In January, Reyes Tool & Dye requisitions raw materials for production as follows: Job 1 $960, Job 2 $1,630, Job 3 $720, and general factory use $680. During January, time tickets show that the factory labor of $6,100 was used as follows: Job 1 $1,570, Job 2 $1,940 Job 3 $1,670, and general factory use $920. Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.) Job 1 Date 1/31 1/31 Direct Materials 960 0 Job 2 Date 1/31 1/31 Direct Materials 1630 0 Job 3 Date 1/31 1/31 Direct Materials 720 0 0 1670 Direct Labor 0 1,940 Direct Labor 0 1570 Direct Labor

In March, Hollaway Company completes Jobs 10 and 11. Job 10 cost $28,110 and Job 11 $32,630. On March 31, Job 10 is sold to the customer for $38,110 in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10. Date Mar. 31 Account/Description Finished goods inventory Work in process inventory (To record completion of jobs.) Mar. 31 Cash 38,110 60740 60740 Debit Credit

Sales (To record sale of job.) Mar. 31 Cost of goods sold Finished goods inventory (To record cost of job.) 28110

38,110

28110

(a) + $50,000 + $42,500 = $155,650 (a) = $63,150 $155,650 + (b) = $201,500 (b) = $45,850 $201,500 - (c) = $192,300 (c) = $9,200 [Note: The instructions indicate that manufacturing overhead is applied on the basis of direct labor cost, and the rate is the same in all cases. From Case A, a student should note the overhead rate to be 85%, or ($42,500 ÷ $50,000).] (d) = .85 × $120,000 (d) = $102,000 $83,000 + $120,000 + $102,000 = (e) (e) =$305,000 $305,000 + $15,500 = (f) (f) = $320,500 $320,500 - $11,800 = (g) (g) = $308,700 [Note: (h) and (i) are solved together.] (i) = .85(h) $63,150 + (h) + .85(h) = $213,000 1.85(h) = $149,850 (h) = $81,000 (i) = $68,850 (j) = $213,000 + $18,000 (j) = $231,000 $231,000 - (k) = $222,000 (k) = $9,000 Manufacturing cost data for Pena Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. Case A Case B Case C Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs a $63,150 50,000 42,500 155,650 $ 83,000 120,000 d 102,000 e 305,000 $ 63,150 h 81,000 i 68,850 213,000

Work in process 1/1/10 Total cost of work in process Work in process 12/31/10 Cost of goods manufactured

b 45,850 201,500 c 9,200 192,300

15,500 f 320,500 11,800 g 308,700

18,000 j 231,000 k 9,000 222,000

Easy Decorating uses a job order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Budgeted overhead Actual overhead Budgeted decorator hours Actual decorator hours The company uses Operating Overhead in place of Manufacturing Overhead. $1,000,000 $779,550 40,000 30,750

Correct.

Compute the predetermined overhead rate. $ 25

Correct.

Prepare the entry to apply the overhead for the year.

Account/Description Work in process Operating overhead 768750

Debit

Credit

768750

Correct.

Determine whether the overhead was under- or overapplied and by how much. $ 10800 Underapplied

P15-2A

For the year ended December 31, 2010, the job cost sheets of DeVoe Company contained the following data. Job Number Explanation 7640 Balance 1/1 Direct Materials $25,000 Direct Labor $24,000 Manufacturing Overhead $28,800 Total Costs $77,800

7641

7642 Other data: 1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639 for $92,000. 3. Job No. 7640 and Job No. 7641 were completed during the...
tracking img