19. Under HERMIE COMPANY's job order cost system, estimated costs of defective work (considered normal in the manufacturing process are included in the predetermined factory overhead rate. During March, Jon No. 210 for 2,000 handsaws was completed at the following costs per unit: Direct maerials 5 Direct labor 4 Factory overhead (applied at 150% of direct labor cost) 6 15 Final inspection disclosed 100 defective saws, which were reworked at a cost of P 2 per unit for direct labor plus overhead at the predetermined rate. The defective units fall with in the normal range. What is the toal rework cost and to what account should it be charged? A P 200 to work-in-process B P 200 to factory overhead control C P 500 to work in prcoess D P 500 to factory overhead control

19. Under HERMIE COMPANY's job order cost system, estimated costs of defective work (considered normal in the manufacturing process are included in the predetermined factory overhead rate. During March, Jon No. 210 for 2,000 handsaws was completed at the following costs per unit: Direct maerials 5 Direct labor 4 Factory overhead (applied at 150% of direct labor cost) 6 15 Final inspection disclosed 100 defective saws, which were reworked at a cost of P 2 per unit for direct labor plus overhead at the predetermined rate. The defective units fall with in the normal range. What is the toal rework cost and to what account should it be charged? A P 200 to work-in-process B P 200 to factory overhead control C P 500 to work in prcoess D P 500 to factory overhead control

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter17: Job Order Costing (job)

Section: Chapter Questions

Problem 1R: Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt...

See similar textbooks

Similar questions

Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.
Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, 28,019.00; direct labor, 15,276.75; and applied factory overhead, 9,854.50. The following data pertain to these costs: The overhead application rates are 4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2. Nutt had no beginning work in process for August. Job 8958, which cost 14,190.18 to manufacture, was completed in July and was sold on account in August for 19,000. The job cost sheet for this job is shown on page 103. Of the jobs begun in August, Job 8961 was completed and sold on account for 24,000, Jobs 8962 and 8964 were completed but not sold, and Job 8963 was still in process. As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
When direct labor hours for Job 101 are 30 and the predetermined factory overhead rate is 5/direct labor hour, what is the applied factory overhead amount? (a) 250 (b) 500 (c) 150 (d) It cannot be determined.
Darlene, Inc. manufactures item “B500” per the design and specification of its customers, and accordingly uses the job order costing system. In March 2022, it finished 10,000 pieces for a customer at a cost of P50.00 per unit for direct materials and P40.00 per unit for direct labor. Factory overhead is applied at 100% of direct labor cost. The production incurred 500 defective units due to an error in the specifications made by the customer and that had to be reworked at a direct labor cost of P10.00 per unit. If the customer is billed at 25% above cost, how much is the billing price?
Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during Marchat the following unit costs:Direct materials P1,500Direct labor 1,000Manufacturing overhead (includes allowances of P50 for spoiled work) 5003,000Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber forP600,000.29. What would be the unit cost of the good coats produced on job #040335 assuming thatspoilage loss is charged to all production? Attributable to exacting specifications of job#040335?a. 2,950 b. 3,000 c. 3,145 d. 3,200
Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during Marchat the following unit costs:Direct materials P1,500Direct labor 1,000Manufacturing overhead (includes allowances of P50 for spoiled work) 5003,000Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber forP600,000.29. What would be the unit cost of the good coats produced on job #040335 assuming thatspoilage loss is charged to all production? Attributable to exacting specifications of job#040335?a. 2,950 b. 3,000 c. 3,145 d. 3,20030. Using the information in item 29, what is the journal entry to record the disposal of thespoiled coats?a. Cash 600,000Manufacturing overhead 1,200,000Work in process -Job #040335 1,800,000b. Cash 600,000Work in process -Job #040335 600,000c. Cash 600,000Abnormal loss 1,200,000Work in process -Job #040335 1,800,000d. Cash 600,000Manufacturing overhead 1,170,000Work in process -Job #040335 1,170,000
Simar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows: Direct materials P300 Direct labor 270 Factory overhead (includes an allowance of P15 Spoiled work) 270Final inspection of Job 888 disclosed 1,250 spoiled units, which were sold for P225,000.What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004?
Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $5.7 million, and the practical level of activity is 375,000 machine hours. During the year, Craig used 382,500 machine hours and incurred actual overhead costs of $5.73 million. Craig also had the following balances of applied overhead in its accounts: Work-in-process inventory $ 576,000 Finished goods inventory 624,000 Cost of goods sold 1,800,000 Required: Compute a predetermined overhead rate for Craig. Compute the overhead variance, and label it as under- or overapplied. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year. Assuming the overhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the…
Harper Company’s Job 301 for the manufacture of 2,200 t-shirts was completed during August 2020 at the following unit costs: Direct materials P 20.00 Direct labor 18.00 Factory overhead (includes an allowance of P1 for spoiled work) 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled t-shirts which were sold to a jobber for P6,000. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the goods produced on Job 301? Assume that spoilage loss is attributable to exacting specification of Job 301 and is charged to this specific job. What would be the unit cost of the goods produced on Job 301?
How can resolve this problem? The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of 76,100 machine-hours were used in October. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 34% above cost. Required: 1. Prepare journal entries to record the…
The LLO-24784 company uses a job-order costing system with direct labor hours as its allocation base. The company estimates its manufacturing overhead cost for the year to be $974,700. During the year, actual direct labor-hours were 36,360 hours, the actual manufacturing overhead cost was $930,000, and manufacturing overhead was overapplied by $51,720. How much was the LLO-24784 company's estimated direct labor-hours used in the calculation of its predetermined overhead rate? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 32,529 direct labor-hours 36,360 direct labor-hours 36,100 direct labor-hours 34,444 direct labor-hours