Carla Vista 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 $19.200,direct labor $11,520, and manufacturing overhead $15,360. As of January 1, Job 49 had been completed at a cost of $86,400 and waspart of finished goods inventory. There was a $14,400 balance in the Raw Materials Inventory account on January 1.During the month of January, Carla Vista Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and50 were sold on account during the month for $117,120 and $151.680, respectively. The following additional events occurred duringthe month.Purchased additional raw haterials of $86,400 on account.1.2.Incurred factory labor costs of $67,200.Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,520; and various othermanufacturing overhead costs on account $15,360.3.4.Assigned direct materials and direct labor to jobs as follows. Job No.Direct MaterialsDirect Labor50$9,600$4,8005137,44024,0005228,80019,2005.Assigned indirect materials of $16,320 and indirect labor of $19,200.Prepare the journal entry to record the completion of any job(s) during the month. (List all debit entries before credit entries.Credit account titles are automatically indented when amount is entered. Do not indent manually.)DebitCreditAccount Titles and Explanation

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Description: Carla Vista 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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Carla Vista Company uses a job order cost system and applies overhead to production on the basis of direct labor 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19.200, direct labor $11,520, and manufacturing overhead $15,360. As of January 1, Job 49 had been completed at a cost of $86,400 and was part of finished goods inventory. There was a $14,400 balance in the Raw Materials Inventory account on January 1. During the month of January, Carla Vista Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $117,120 and $151.680, respectively. The following additional events occurred during the month. 1. Purchased additional raw haterials of $86,400 on account. 2. Incurred factory labor costs of $67,200. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11.520; and various other manufacturing overhead costs on account $15,360. 4. Assigned direct materials and direct labor to jobs as follows.

Carla Vista Company uses a job order cost system and applies overhead to production on the basis of direct labor 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19.200, direct labor $11,520, and manufacturing overhead $15,360. As of January 1, Job 49 had been completed at a cost of $86,400 and was part of finished goods inventory. There was a $14,400 balance in the Raw Materials Inventory account on January 1. During the month of January, Carla Vista Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $117,120 and $151.680, respectively. The following additional events occurred during the month. 1. Purchased additional raw haterials of $86,400 on account. 2. Incurred factory labor costs of $67,200. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11.520; and various other manufacturing overhead costs on account $15,360. 4. Assigned direct materials and direct labor to jobs as follows.

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 18E: Feldspar Company uses an ABC system to apply overhead. There are three activity rates, shown on page...

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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
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.
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.
Gerken Fabrication Inc. 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 March: a. Compute the total production cost of each job. b. Prepare the journal entries to charge the costs of materials, labor, and factory overhead to Work in Process. c. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. d. Compute the unit cost of each job. e. Compute the selling price per unit for each job, assuming a mark-on percentage of 50%.
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?
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?
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.
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.
Terrills Transmissions uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows: The following transactions were completed during November: a. Materials purchases on account during the month, 74,000. b. Materials requisitioned during the month: 1. Direct materials, 57,000. 2. Indirect materials, 11,000. c. Direct materials returned by factory to storeroom during the month, 1,100. d. Materials returned to vendors during the month prior to payment, 2,500. e. Payments to vendors during the month, 68,500. Required: 1. Prepare general journal entries for each of the transactions. 2. Post the general journal entries to T-accounts. 3. Balance the accounts and report the balances of November 30 for the following: a. Cash b. Materials c. Accounts Payable
Entries and schedules for unfinished jobs and completed jobs Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: A. Materials purchased on account, 45,000. B. Materials requisitioned and factory labor used: C. Factory overhead costs incurred on account, 1,800. D. Depreciation of machinery and equipment, 2,500. E. The factory overhead rate is 30 per machine hour. Machine hours used: F. Jobs completed: 301, 302, 303, and 305. G. Jobs were shipped and customers were billed as follows: Job 301, 8,500; Job 302, 16,150; Job 303, 13,400. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.
On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Required: 1. Calculate the predetermined overhead rate based on direct labor cost. 2. Calculate the ending balance for each job as of August 31. 3. Calculate the ending balance of Work in Process as of August 31. 4. Calculate the cost of goods sold for August. 5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairles sales revenue for August.