EXERCISE 3– 6 Applying Overhead; Computing Unit Product Cost [LO3–2, LO3–3] A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 shows that $10,000 in direct materials has been used on the job and that $12,000 in direct labor cost has been incurred. A total of 1,000 units were produced in Job 313. Required: What is the total manufacturing cost assigned to Job 313? What is the unit product cost for Job 313?

EXERCISE 3– 6 Applying Overhead; Computing Unit Product Cost [LO3–2, LO3–3] A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 shows that $10,000 in direct materials has been used on the job and that $12,000 in direct labor cost has been incurred. A total of 1,000 units were produced in Job 313. Required: What is the total manufacturing cost assigned to Job 313? What is the unit product cost for Job 313?

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15.9EX: Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and...

See similar textbooks

Similar questions

Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including 56,200 of indirect materials) 607,500 Direct labor (including 84,400 maintenance salaries) 62,500 Factory overhead: Supervisor salariesplant 517,500 Heat, light, and power-plant 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxesplant 151,900 Insurance and property taxescorporate offices 219,400 Depreciationplant and equipment 123,750 Depreciationcorporate offices 90,000 3,076,950
EXERCISE 3–4 Prepare Journal Entries [LO3–4] Larned Corporation recorded the following transactions for the just completed month. $80,000 in raw materials were purchased on account. $71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor. Additional manufacturing overhead costs of $175,000 were incurred. Manufacturing overhead is applied based on direct labor hours. The PDOR is $10 per DLH. 5,050 actual direct labor hours were incurred. Jobs totaling $105,000 were completed and transferred to finished goods. Jobs costing $85,000 were sold for $200,000 (2 entries) Sales salaries incurred on account were $15,000 Required: Record the above transactions in journal entries.
EXERCISE 3–5 Underapplied and Overapplied Overhead [LO3–7]ABS Manufacturing uses a predetermined overhead rate of $18.20 per direct labor-hour. This predetermined ratewas based on a cost formula that estimates $218,400 of total manufacturing overhead for an estimated activity levelof 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $215,000 and11,500 total direct labor-hours during the period.Required:1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.2. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to Cost of Goods Sold,what would be the effect of the underapplied or overapplied overhead onthe company’s gross margin for the period?
EXERCISE 3–2 Apply Overhead [LO3–2]Lexter Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate wasbased on a cost formula that estimated $257,400 of total manufacturing overhead for an estimated activity level of11,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $249,000 and 10,800total direct labor-hours during the period.Required:Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.
EXERCISE 3–1 Compute the Predetermined Overhead Rate [LO3–1]Harris Fabrics computes its predetermined overhead rate annually on the basis of direct laborhours.At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period’s estimatedlevel of production. The company also estimated $94,000 of fixed manufacturing overhead expenses for the comingperiod and variable manufacturing overhead of $2.00 per direct labor-hour. Harris’s actual manufacturing overheadfor the year was $123,900 and its actual total direct labor was 21,000 hours.
CH 19 Q8 Job Costs At the end of August, Ingram Company had completed Jobs 40 and 42. Job 40 is for 200 units, and Job 42 is for 1,000 units. The following data relate to these two jobs: On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $12 per unit and 1,200 units for Job 42 at $16 per unit. During August, Ingram Company accumulated 600 hours of direct labor costs on Job 40 and 700 hours on Job 42. The total direct labor was incurred at a rate of $16 per direct labor hour for Job 40 and $10 per direct labor hour for Job 42. The predetermined factory overhead rate is $7.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August. Job 40 $fill in the blank 1 Job 42 $fill in the blank 2 b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent. Job 40 $fill in the blank 3 Job 42 $fill in the blank 4