JPB Company has only one job in process on January 1, 2022, Job No. 97 for 75 units, carried at a cost of P78,400. During the 6 months period January to June 2022 JC accepted two more jobs, Job No. 98 for 200 units and Job No. 99 for 100 units. Actual data for the period is as follows: Direct Materials used, P2,800,000 distributed as: Job No. 97, 20%; Job No. 98, 45%; Job No. 99, 35%. Direct Labor cost, P2,175,000 distributed as: Job No. 97, 25%; Job No. 98, 50%; Job No. 99, 25%. Various overhead incurred, P2,878,000 Purchases of Raw Materials, P3,200,000 The company's annual budgeted overhead is P5,460,000 while the annual budgeted direct labor costs is P4,200,000. Overhead is applied to production on the bases of direct labor costs. Jobs 97 and 98 were completed and sold while Job 99 is still in process at the end of June. Any variance is considered immaterial. The adjusted cost of goods sold for the period ended is:

JPB Company has only one job in process on January 1, 2022, Job No. 97 for 75 units, carried at a cost of P78,400. During the 6 months period January to June 2022 JC accepted two more jobs, Job No. 98 for 200 units and Job No. 99 for 100 units. Actual data for the period is as follows: Direct Materials used, P2,800,000 distributed as: Job No. 97, 20%; Job No. 98, 45%; Job No. 99, 35%. Direct Labor cost, P2,175,000 distributed as: Job No. 97, 25%; Job No. 98, 50%; Job No. 99, 25%. Various overhead incurred, P2,878,000 Purchases of Raw Materials, P3,200,000 The company's annual budgeted overhead is P5,460,000 while the annual budgeted direct labor costs is P4,200,000. Overhead is applied to production on the bases of direct labor costs. Jobs 97 and 98 were completed and sold while Job 99 is still in process at the end of June. Any variance is considered immaterial. The adjusted cost of goods sold for the period ended is:

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...

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Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.
Argo Manufacturing Co. had 500 units, three-fifths completed, in process at the beginning of the month. During the month, 2,000 units were started in process and finished. There was no work in process at the end of the month. Unit cost of production for the month was 1.20. Costs for materials, labor, and factory overhead incurred in the current month totaled 2,655. Calculate the unit cost for the prior month. (Hint: You must first determine what the dollar balance in work in process must have been at the beginning of the month, as well as the equivalent production of the units in beginning inventory.)
Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold
Potomac Automotive Co. manufactures engines that are made only on customers orders and to their specifications. During January, the company worked on Jobs 007, 008, 009, and 010. The following figures summarize the cost records for the month: Jobs 007 and 008 have been completed and delivered to the customer at a total selling price of 426,000, on account. Job 009 is finished but has not yet been delivered. Job 010 is still in process. There were no materials or work in process inventories at the beginning of the month. Material purchases were 115,000, and there were no indirect materials used during the month. Required: 1. Prepare a summary showing the total cost of each job completed during the month or in process at the end of the month. 2. Prepare the summary journal entries for the month to record the distribution of materials, labor, and overhead costs. 3. Determine the cost of the inventories of completed engines and engines in process at the end of the month. 4. Prepare the journal entries to record the completion of the jobs and the sale of the jobs. 5. Prepare a statement of cost of goods manufactured.
Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.