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Costing_ JOb Costing_27 Jan

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Question;2.;The following cost data relate to the manufacturing activities of Black Company;during the just completed year;Manufacturing;overhead costs;Property;taxes, factory;$;2,800;Utilities;factory;4,900;Indirect;labor;9,900;Depreciation;factory;24,000;Insurance;factory;5,900;Total;actual manufacturing overhead costs;$;47,500;Other;costs incurred;Purchases;of raw materials;$;31,700;Direct;labor cost;$;40,300;Inventories;Raw;materials, beginning;$;8,800;Raw;materials, ending;$;6,700;Work;in process, beginning;$;5,400;Work;in process, ending;$;6,600;The;company uses a predetermined overhead rate to apply overhead cost to jobs. The;rate for the year was $5 per machine-hour, a total of 11,100 machine-hours was;recorded for the year. All raw materials ultimately become direct;materials?none are classified as indirect materials.;1.;Compute the;amount of underapplied or overapplied overhead cost for the year. (Input;the amount as a positive value.;2. Prepare a schedule of cost of;goods manufactured for the year. (Input all amounts as positive;values.);4.;Selected T-accounts for Rolm;Company are given below for the just completed year;1.;What was the cost of raw materials put into production during;the year?;2.;How much of the materials in (1) above consisted of indirect;materials?;3.;How much of the factory labor cost for the year consisted of;indirect labor?;4.;What was the cost of goods manufactured for the year?;5.;What was the cost of goods sold for the year (before;considering underapplied or overapplied overhead)?;6.;If overhead is applied to production on the basis of direct;materials cost, what predetermined rate was in effect during the;year?(Round;your answer to 2 decimal places.);7.;Was manufacturing overhead underapplied or overapplied? By how;much?(Input;the amount as a positive value.);8.;Compute the ending balance in the Work in Process inventory;account. Assume that this balance consists entirely of goods started during;the year. If $32,600 of this balance is direct materials cost, how much of;it is direct labor cost? Manufacturing overhead cost?(Round your;predetermined overhead rate percentage and final answers to 2 decimal;places.);Ending;balance in the work in process $;Direct labor;cost $;Manufacturing;overhead cost $;6.;Job;218 was one of the many jobs started and completed during the year. The job;required $3,400 in direct materials and 500 hours of direct labor time at a;rate of $12 per hour. If the job contained 540 units and the company billed;at 75% above the unit product cost on the job cost sheet, what price per unit;would have been charged to the customer?;5.Southworth Company uses a job-order costing system and applies;manufacturing overhead cost to jobs on the basis of the cost of direct;materials used in production. Its predetermined overhead rate was based on a;cost formula that estimated $235,500 of manufacturing overhead for an;estimated allocation base of $157,000 direct material dollars.;The following transactions took;place during the year (all purchases and services were acquired on account);a.;Raw;materials purchased, $152,000.;b.;Raw;materials requisitioned for use in production (all direct materials);$145,000.;c.;Utility;bills incurred in the factory, $24,000.;d.;Costs;for salaries and wages were incurred as follows;Direct;labor;$;218,000;Indirect;labor;$;79,300;Selling;and administrative salaries;$;143,000;e.;Maintenance;costs incurred in the factory, $16,000.;f.;Advertising;costs incurred, $120,000.;g.;Depreciation;recorded for the year, $50,000 (70% relates to factory assets, and the;remainder relates to selling and administrative assets).;h.;Rental;cost incurred on buildings, $85,000 (80% of the space is occupied by the;factory, and 20% is occupied by sales and administration).;i.;Miscellaneous;selling and administrative costs incurred, $14,000.;j.;Manufacturing;overhead cost was applied to jobs, $?;k.;Cost;of goods manufactured for the year, $551,000.;l.;Sales for the year (all on account) totaled $1,200,000. These;goods cost $530,000 according to their job cost sheets.;The balances in the inventory;accounts at the beginning of the year were as follows;Raw;Materials 23000;$;Work;in Process 22000;$;Finished;Goods $32000;1. Prepare Journal;Entries to record A-L;2.;Post your entries to T-accounts. (Don?t forget to enter the;opening inventory balances above.) Determine the ending balances in the;inventory accounts and in the Manufacturing Overhead account.(Record the transactions in;the given order.);3.;Prepare a schedule of cost of goods manufactured.(Input all amounts;as positive values.);4.;Prepare a journal entry to close any;balance in the Manufacturing Overhead account to Cost of Goods Sold.;Prepare a schedule of cost of goods sold;5. Prepare Income;Statement for the Year

 

Paper#37250 | Written in 18-Jul-2015

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