At the beginning of the month, Daniel's Business Services had two incomplete consulting engagements (jobs) that had the following costs assigned from previous months. Job Number DBS-32 DBS-35 Associate Labor $ 39,120 29,080 Applied Overhead ? During the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Completion of DBS-32 required an additional $33,700 in associate labor. For DBS-35, an additional $104,000 in associate labor was incurred. During the month, the only new job, DBS-36, was started but not finished. Total direct labor costs for all jobs amounted to $188,000 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including supplies, copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 75 percent of associate labor costs. This rate has not changed for many months. Actual overhead for the month was $137,680. Required: a. What are the costs of Jobs DBS-32 and DBS-35 at (1) the beginning of the month and (2) when completed? b. What is the cost of Job DBS-36 at the end of the month? c. How much was under- or overapplied service overhead for the month?

At the beginning of the month, Daniel's Business Services had two incomplete consulting engagements (jobs) that had the following costs assigned from previous months. Job Number DBS-32 DBS-35 Associate Labor $ 39,120 29,080 Applied Overhead ? During the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Completion of DBS-32 required an additional $33,700 in associate labor. For DBS-35, an additional $104,000 in associate labor was incurred. During the month, the only new job, DBS-36, was started but not finished. Total direct labor costs for all jobs amounted to $188,000 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including supplies, copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 75 percent of associate labor costs. This rate has not changed for many months. Actual overhead for the month was $137,680. Required: a. What are the costs of Jobs DBS-32 and DBS-35 at (1) the beginning of the month and (2) when completed? b. What is the cost of Job DBS-36 at the end of the month? c. How much was under- or overapplied service overhead for the month?

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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During August, Skyler Company worked on three jobs. Data relating to these three jobs follow: Overhead is assigned on the basis of direct labor hours at a rate of 2.30 per direct labor hour. During August, Jobs 39 and 40 were completed and transferred to Finished Goods Inventory. Job 40 was sold by the end of the month. Job 41 was the only unfinished job at the end of the month. Required: 1. Calculate the per-unit cost of Jobs 39 and 40. (Round unit costs to nearest cent.) 2. Compute the ending balance in the work-in-process inventory account. 3. Prepare the journal entries reflecting the completion of Jobs 39 and 40 and the sale of Job 40. The selling price is 140 percent of cost.
Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following: Determine the prorated amount of the overapplied factory overhead that is chargeable to each of the accounts. Prepare the journal entry to close the credit balance in Under-and Overapplied Factory Overhead.
At the beginning of the month, Daniel's Business Services had two incomplete consulting engagements (jobs) that had the following costs assigned from previous months. Job Number DBS-32 DBS-35 Associate Labor $ 39,320 29, 280 During the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Completion of DBS-32 required an additional $33,900 in associate labor. For DBS-35, an additional $105,000 in associate labor was incurred. Applied Overhead ? ? During the month, the only new job, DBS-36, was started but not finished. Total direct labor costs for all jobs amounted to $188,200 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including supplies, copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 75 percent of associate labor costs. This rate has not changed for many months. Actual overhead for the month was $137,700. Required: a. What are the costs of Jobs DBS-32…
At the beginning of the month, Daniel's Business Services had two Incomplete consulting engagements (Jobs) that had the following costs assigned from previous months. Job Number DBS-32 DBS-35 Associate Labor $ 38,920 28,880 Applied Overhead ? ? During the month, Jobs DBS-32 and DBS-35 were completed but not billed to customers. Completion of DBS-32 required an additional $33,500 in associate labor. For DBS-35, an additional $103,000 in associate labor was incurred. During the month, the only new job, DBS-36, was started but not finished. Total direct labor costs for all jobs amounted to $187,800 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular Jobs, Including supplies, copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 75 percent of associate labor costs. This rate has not changed for many months. Actual overhead for the month was $137,660. Required: a. What are the costs of Jobs DBS-32…
At the beginning of the month, Arthur's Olde Consulting Corporation had two jobs in process that had the following costs assigned from previous months. Job Number SY-400 SY-403 Direct Labor Applied Overhead $23,440 15,520 ? During the month, Jobs SY-400 and SY-403 were completed but not billed to customers. The completion costs for SY-400 required $26.000 in direct labor. For SY-403, $76,000 in labor was used. During the month, the only new job, SY 404, was started but not finished. Total direct labor costs for all jobs amounted to $149,520 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including copying, printing. and travel costs to meet with clients. Overhead is applied at a rate of 60 percent of direct labor costs for this and previous periods. Actual overhead for the month was $93,000. Required: 6. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed? b. What is the cost of…
WUIKS UH three jobs during the upcoming year. Direct labor-hours recorded by job are: job 237, 7,000 hours; job 250. 30,000 hours; and job 239, 21.000 hours. How much overhead cost will the company apply to Work in Process for the year? If actual costs are P420,000 for the year, will overhead be underapplied or overapplied? by how much? Exercise 4 (Departmental Overhead Rates) Bobcat Company has two departments, milling and assembly. The company uses a job-order cost system and computes a predetermined overhead rate in each department. The milling department bases its rate on machine-hours, and the assembly department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates: Department Milling 8,000 60,000 P510,000 72,000 Assembly Direct labor-hours 75,000 3,000 P800,000 640,000 Machine-hours Manufacturing overhead cost Direct labor cost Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that…
On January 1, VYLGHA946 Corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be 20,000. VYLGHA946's actual machine hours for the year were 28,810. The company uses job-order costing with machine hours as the allocation base. At the end of the year, the VYLGHA946's books reveal following actual results: Advertising Expense $8.900 (#ID75106) Direct Labor $25,100 Purchases of Raw Materials $12,100 Rent, Factory Building $56.000 Indirect Labor $38,900 Sales Commissions $7.800 Utilities, Factory S13,100 Maintenance, Factory Equipment $7,000 CEO Salary $6,000 Depreciation, Factory Equipment $11,800 Q. What is VYLGHA946's amount of over- or under-applied OH? (Enter just the amount) AS
Cao Inc. has worked on the following jobs during the first quarter of the year. The list of each job along with the balance of the total costs incurred at the end of the quarter is provided below: Job no. Ending Balance Job No. 221 $1,350 Job No. 222 1,270 Job No. 223 1,580 Job No. 224 1,690 Job No. 225 960 During the first quarter, jobs 221, 222, and 223 were completed; jobs 221 and 223 were sold on account for $2,000 and $2,380 respectively. Compute the ending balance of finished goods inventory. Group of answer choices $2,650 $4,200 $1,270 $2,930
Cao Inc. has worked on the following jobs during the first quarter of the year. The list of each job along with the balance of the total costs incurred at the end of the quarter is provided below: Job no. Ending Balance Job No. 221 $1,350 Job No. 222 1,270 Job No. 223 1,580 Job No. 224 1,690 Job No. 225 960 During the first quarter, jobs 221, 222, and 223 were completed; jobs 221 and 223 were sold on account for $2,000 and $2,380 respectively. What would be the amount of costs of goods sold to be recorded in the income statement of the first quarter? Group of answer choices $1,270 $2,650 $4,200 $2,930
Cao Inc. has worked on the following jobs during the first quarter of the year. The list of each job along with the balance of the total costs incurred at the end of the quarter is provided below: Job no. Ending Balance Job No. 221 $1,350 Job No. 222 1,270 Job No. 223 1,580 Job No. 224 1,690 Job No. 225 960 During the first quarter, jobs 221, 222, and 223 were completed; jobs 221 and 223 were sold on account for $2,000 and $2,380 respectively. What would the journal entry to record the costs of completed job during the first quarter be? Group of answer choices Debit: Finished goods inventory $4,200 and Credit: Work-in-process inventory $4,200 Debit: Work-in-process inventory $2,650 and Credit: Finished goods inventory $2,650 Debit: Finished goods inventory $1,270 and Credit: Work-in-process inventory $1,270 Debit: Work-in-process inventory $2,930 and Credit Finished goods inventory $2,930
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to increase or decase and by how much? check_circleAnswer Step 1 Underapplied overhead: When there is a debit balance in the manufacturing overhead account during the month end, it indicates that overheads applied to jobs are less than the actual overhead cost incurred by the business. Therefore, the debit balance in the manufacturing overhead account is referred to as underapplied overhead. Overapplied overhead: When there is a credit balance in the manufacturing overhead account during the month end, indicates that overheads applied to jobs is more than the actual overhead cost incurred by the business. Therefore, the credit balance in the manufacturing overhead account is referred to as overapplied overhead. Step 2 Calculate the overapplied or underapplied overhead. help_outlinefullscreen Step 3…
An advertising agency uses a job costing system to calculate the cost of client contracts. Contract A42 is one of several contracts undertaken in the last accounting period. Costs associated with the contract consist of: Direct materials $5,500 $14,500 Direct expenses Design staff worked 1,020 hours on contract A42, of which 120 hours were overtime. One third of these overtime hours were worked at the request of the client who wanted the contract to be completed quickly. Overtime is paid at a premium of 25 per cent of the basic rate of $24.00 per hour. The prime cost of contract A42 is $