1.2.Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,2022. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $22,800,direct labor $13,680, and manufacturing overhead $18,240. As of January 1, Job 49 had been completed at a cost of $102.600 andwas part of finished goods inventory. There was a $17,100 balance in the Raw Materials Inventory account on January 1.4.During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50were sold on account during the month for $139,080 and $180,120, respectively. The following additional events occurred during themonth.12Purchased additional raw materials of $102.600 on account.Incurred factory labor costs of $79,800.Incurred manufacturing overhead costs as follows: depreciation expense on equipment $13.680; and various othermanufacturing overhead costs on account $18.240.Assigned direct materials and direct labor to jobs as follows.Job No.5051Question 10 of 20CUPHEUS EFTS: IPSASHION Martiary, Jewrism Company vegan prosocarroUT JUUS 31 310 72, στο commpties 30US JUWINE 31. JOUS 47 IN 30were sold on account during the month for $139,080 and $180,120, respectively. The following additional events occurred during themonth.50Job No.5152Direct Materials$11,40044 460Purchased additional raw materials of $102,600 on account.Incurred factory labor costs of $79,800.Incurred manufacturing overhead costs as follows: depreciation expense on equipment $13,680; and various othermanufacturing overhead costs on account $18,240.Assigned direct materials and direct labor to jobs as follows.Direct Labor$5,700Direct Materials$11.40044,46029 cm34,200Direct Labor$5,70028.50022,800Assigned indirect materials of $19,380 and indirect labor of $22,800. (a)Calculate the predetermined overhead rate for 2022, assuming Sheridan Company estimates total manufacturing overhead costsof $957,600, direct labor costs of $798,000, and direct labor hours of 22,800 for the year.Predetermined overhead rate

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Description: 1.2.Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,2022. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct

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alculate the predetermined overhead rate for 2022, assuming Sheridan Company estimates total manufacturing overhead costs f $957,600, direct labor costs of $798,000, and direct labor hours of 22,800 for the year. Predetermined overhead rate

alculate the predetermined overhead rate for 2022, assuming Sheridan Company estimates total manufacturing overhead costs f $957,600, direct labor costs of $798,000, and direct labor hours of 22,800 for the year. Predetermined overhead rate

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 17E: During August, Skyler Company worked on three jobs. Data relating to these three jobs follow:...

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Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?
A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Using the information provided. A. What is the balance in work in process? B. What Is the balance in the finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?
Entries for costs in a job order cost system Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: A. Materials purchased on account, 770,000. B. Materials requisitioned, 680,000, of which 75,800 was for general factory use. C. Factory labor used, 756,000, of which 182,000 was indirect. D. Other costs incurred on account for factory overhead, 245,000; selling expenses, 171,500; and administrative expenses, 110,600. E. Prepaid expenses expired for factory overhead were 24,500; for selling expenses, 28,420; and for administrative expenses, 16,660. F. Depreciation of factory equipment was 49,500; of office equipment, 61,800; and of office building, 14,900. G. Factory overhead costs applied to jobs, 568,500. H. Jobs completed, 1,500,000. I. Cost of goods sold, 1,375,000. Instruction Journalize the entries to record the summarized operations.
Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.
Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580
During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
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.
During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on account, $300 in factory depreciation expense, and $100 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
Leen Production Co. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of May: a. Compute the total production cost of each job. b. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. c. Compute the selling price per unit for each job, assuming a mark-on percentage of 40%. d. Prepare the journal entries to record the sale of Job 1065.
JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Rich Manufacturing Corporation had the following transactions for its job order costing operation. Prepare general journal entries to record these transactions. Jan. 1 Purchased materials on account, 22,000. 15 Issued direct materials to Job No. 1, 18,000. 20 Issued indirect materials (factory overhead), 3,000. 31 Incurred direct labor, Job No. 1, 11,000. 31 Incurred indirect labor (factory overhead), 4,000. 31 Incurred other indirect costs (factory overhead; credit Accounts Payable), 1,500.
JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Hilburn Manufacturing Corporation had the following transactions for its job order costing operation. Prepare general journal entries to record these transactions. Jan.1 Purchased materials on account, 17,000. 15 Issued direct materials to Job No. 104, 11,000. 20 Issued indirect materials (factory overhead), 5,000. 31 Incurred direct labor, Job No. 104, 9,000. 31 Incurred indirect labor (factory overhead), 2,500. 31 Incurred other indirect costs (factory overhead; credit Accounts Payable), 2,000.