Problem 5 c) The completion of Job No 101Problem 4Hercules Cormpany begins operations on April 1. Information from job cost sheetsshows the followingManufacturing Costs AssignedAprilP 5,2004,7001,200Job NumberMayP 5,4003,800Month CompletedMayP 2,000 JuneApril4,200 June3,800 Not yet completeJune1011021031045,8005,200105Each job was sold for 25% above its cost in the month following completionInstructions:1. Compute for the balance of Work in Process Inventory at the end of eachmonth.2. Compute for the balance of the Finished Goods Inventory at the end ofeach month3. Compute for the gross profit for May, June and July

Solution (1) Work in Process Inventory: Amount Job Number April (P5,200 + P4,700) P9,900…

Answered: Hercules Company begins operations on…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 9EA: A new company started production. Job 10 was completed, and Job 20 remains in production. Here is...

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Job 113 was completed at a cost of $7,500, and Job 85 was completed at a cost of $2,300 and sold on account for $4,500. Prepare journal entries for the following: A. Completion of Job 113. B. Completion and sale of Job 85.
(Appendix 4A) Journal Entries, Job Costs The following transactions occurred during the month of April for Nelson Company: a. Purchased materials costing 4,610 on account. b. Requisitioned materials totaling 4,800 for use in production, 3,170 for Job 518 and the remainder for Job 519. c. Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month. Direct laborers are paid at the rate of 14 per hour. d. Applied overhead using a plantwide rate of 6.20 per direct labor hour. e. Incurred and paid in cash actual overhead for the month of 973. f. Completed and transferred Job 518 to Finished Goods. g. Sold on account Job 517, which had been completed and transferred to Finished Goods in March, for cost (2,770) plus 25%. Required: 1. Prepare journal entries for Transactions a through e. 2. Prepare job-order cost sheets for Jobs 518 and 519. Prepare journal entries for Transactions f and g. (Note: Round to the nearest dollar.) 3. Prepare a schedule of cost of goods manufactured for April. Assume that the beginning balance in the raw materials account was 1,025 and that the beginning balance in the work-in-process account was zero.
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?
Source Documents For each of the following independent situations, give the source document that would be referred to for the necessary information. Required: 1. Direct materials costing 460 are requisitioned for use on a job. 2. Greiners Garage uses a job-order costing system. Overhead is applied to jobs based on direct labor hours. Which source document gives the number of direct labor hours worked on Job 2004-276? 3. Pasilla Investigative Services bills clients on a monthly basis for costs to date. Job 3-48 involved an investigator following the clients business partner for a week by automobile. Mileage is billed at number of miles times 0.75. 4. The foreman on the Jackson job wonders what the actual direct materials cost was for that job.
Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.
Job cost sheets show the following information: Job January February March Completed Sold AA2 $2500 $1200 February not sold AA4 $4838 January february AA5 $3250 February march AA3 $3409 $2319 april not sold Total $7338 $7859 $2319 Required: a) Which job(s) are still in process at the end of January, and what is the cost of this job(s)? b) Which job(s) were completed at the end of February, and what is the cost of this completed job(s)? c) What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for March? d) How does job costing in a service organization differ from job costing in a manufacturing organization?
19. James Company uses a job order cost sytem. The following debits (credits) appeared in James account for the month of April 2020: AprilDescriptionAmount 1 BalanceP4,000 30 Direct Materials24,000 .30Direct labor16,000 .30Factory overhead12,800 .30To finished goods(48,000) James applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5, the only job still in process on April 30, 2020, ahs been charged of direct labor of P2,000. What was the amount of direct materials charged to Job No.5? 20. Ethel Company’s job order system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January 2020, Ethel’s transactions included the following: Direct materials issued to productionP 90,000 Indirect materials issued to production 8,000 Manufacturing overhead incurred125,000 Manufacturing overhead applied113,000 Direct labor costs107,000 Ethel had neither…
Bro Corporation manufactures products on a job order basis. The job cost sheet for Job #65shows the following for March: Direct material P5,000Direct labor (100 hours @ P7.25) P725Machine hours incurred 40Predetermined overhead rate per machine hour P26At the end of March, what total cost appears on the job cost sheet for Job #65?a. P5,725b. P5,765c. P6,765d. P8,325
MLB Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined overhead rate. The following information relates to MLB Inc. for the year ended December 31, 2020: Job No. 101 Job No. 102 Job No. 103 Job in Process, January 1, 2020 Direct Materials 40 000 30 000 0 Labor 60 000 40 000 0 Factory Overhead 30 000 20 000 0 Cost added during 2020 Materials 20 000 10 000 100 000 Labor 100 000 200 000 400 000 Factory Overhead ? ? ? Additional information: 1) Actual overhead for the year 2020 amounted to P350,000. 2) Jobs No. 101 and 102 were completed and transferred to finished goods during the year 2020. 3) Job No. 101 was sold during the year 2020. 4) The gross profit rate is 20% based on cost. 3. What is the cost of goods profit for 2020? a. 1,180,000 b. 300,000 c. 700,000 d. 1,200,000 4. What is the gross profit for 2020? a. 236,000 b. 60,000 c. 140,000 d. 240,000 5. What is the cost of work in…
The following information pertains to XYZ Co. for September 2001. Direct Material Direct Labor Overhead Job #123 $ 3,200 $ 4,500 ? Job #125 ? 5,000 ? Job #201 5,670 ? $ 5,550 XYZ Co. applies overhead for Job #123 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #125 and #201. The total cost of Jobs #123 and #125 is identical. Assume that Jobs #123 and #201 are incomplete at the end of September. What is the balance in Work in Process Inventory at that time?
XYZ Equipment In. receives order from Shiraz Consultant Clinic on 15th August. The company started its production on 18th of August and completed in 25th of August. The company collects its cost and revenue data by the job order cost accumulation procedure. For job number 505, the following data are available Direct material Direct Labor FOH-Applied Date REQ. NO: Amount Rs. Date Hours Cost Rs. Rs. 30 for each direct labor hours 8/18 400 4000 8/18 30 600 ? 8/19 600 6000 8/19 40 800 8/25 1000 10000 8/21 35 700 Total 20000 8/23 50 1000 8/25 60 1200 Total 4300

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