organization as a whole.Question 2Peterson Corporation Company uses a job costing system and had the following data availabfor the current period.$70,000$54,500$75,000(i)Purchased materials on account(ii) Materials requisitioned ( includes $6,500 of indirect material)(ii) Manufacturing wages incurred(iv) Assigned manufacturing wages, 85% direct labour, 15% indirect labour(v)Depreciation of factory equipment(vi)Other manufacturing overhead incurred(vii) Manufacturing overhead applied (as a % of direct labour cost)(viii) Cost of goods completed(ix) Cost of goods sold (on account) at a mark-up of 45%$13,500$45.900130%$165,000$130,000(a) State the journal entries necessary to record the above transactions.(b) As your final journal entry, dispose of any overhead variance as a direct write-off to COGS(c) What is balance on the Cost of Goods Sold account after the adjustment(d)Determine the gross profit earned for the period.JeerF11F12PrtScSysRqPauseBreakIns- BackspHK ACCT 1003 - Intro. To Cost & Management AcWorksheet # 3: Job Order CostingStudy QuestionsQuestion 1C Ltd has two departments A & B. Overhead is applied based on direct labourdepartment A and machine hours in department B.The following additional information is available:Department A$300,000Department B$360,000Budgeted OverheadsBudgeted direct labour hoursBudgeted direct labour costBudgeted machine hours50,000$240,00068,00040,000$330,00080,000i)Compute the overhead rate for Department A.ii)Compute the overhead rate for Department B.iii)Given that the actual overheads were as followsDept. ADept. BDirect labour hoursDireet labour costMachine hoursActual overheads45,000$60.00035,000$50,00075,000$320,00025,000$285.000Calculate the under- or over-applied overheads for each departmenf and for theorganization as a whole.acerF5F6FZF8F9F10F11F12PrtScPauseScr LkSysRq.Break%&*€79.YP.

C Ltd has two departments A & B. Overhead is applied based on direct labour department A and machine hours in department B. The following additional information is available: Budgeted Overheads Budgeted direct labour hours Budgeted direct labour cost Budgeted machine hours Department A Department B $300,000 50,000 $240,000 68,000 $360,000 40,000 $330,000 80,000 i) Compute the overhead rate for Department A. ii) Compute the overhead rate for Department B. iii) Given that the actual overheads were as follows Dept. A 45,000 $60,000 25,000 $285.000 Dept. B Direct labour hours Direct labour cost Machine hours Actual overhends 35,000 $50,000 75,000 $320,000 Calculate the under- or over-applied overhcads for each departmeni and for the organization as a whole.

C Ltd has two departments A & B. Overhead is applied based on direct labour department A and machine hours in department B. The following additional information is available: Budgeted Overheads Budgeted direct labour hours Budgeted direct labour cost Budgeted machine hours Department A Department B $300,000 50,000 $240,000 68,000 $360,000 40,000 $330,000 80,000 i) Compute the overhead rate for Department A. ii) Compute the overhead rate for Department B. iii) Given that the actual overheads were as follows Dept. A 45,000 $60,000 25,000 $285.000 Dept. B Direct labour hours Direct labour cost Machine hours Actual overhends 35,000 $50,000 75,000 $320,000 Calculate the under- or over-applied overhcads for each departmeni and for the organization as a whole.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 13PA: Selected information from Skylar Studios shows the following: Prepare journal entries to record the...

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Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.
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JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or overapplied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102, 103, and 104, direct labor hours are 12,000, 10,000, 11,000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101-104 using the predetermined factory overhead rare (see above). (i) Finished Job Nos. 101-103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and O for 50,000 and 45,400, respectively. (k) Transferred under- or overapplied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). Make compound entries for (b), (d), and (h), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.
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