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Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 @ $10/unit • 5,500 units for Job 2 @ $15/unit • 12,300 units for Job 3 @ $5/unit • Requisitioned materials for production: • 5,000 units for Job 1 @ $10/unit • 4,000 units for Job 2 @ $15/unit 10,000 unit for Job 3 @ $5/unit Direct labor costs: • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour • Total factory overhead costs for the month: • $70,000 of indirect materials • $115,000 of indirect labor • $97,000 of utilities costs • $18,000 of factory depreciation Production data: • Job 1 produced 5,000 units out of an estimated possible 8,000 units, • Job 2 produced 20,000 units out of an estimated possible 24,000 units • Job 3 produced 11,000 units out of an estimated possible 12,100 units, • Sales data: • Job 1> 4,000 units sold on credit for $25 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.

Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 @ $10/unit • 5,500 units for Job 2 @ $15/unit • 12,300 units for Job 3 @ $5/unit • Requisitioned materials for production: • 5,000 units for Job 1 @ $10/unit • 4,000 units for Job 2 @ $15/unit 10,000 unit for Job 3 @ $5/unit Direct labor costs: • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour • Total factory overhead costs for the month: • $70,000 of indirect materials • $115,000 of indirect labor • $97,000 of utilities costs • $18,000 of factory depreciation Production data: • Job 1 produced 5,000 units out of an estimated possible 8,000 units, • Job 2 produced 20,000 units out of an estimated possible 24,000 units • Job 3 produced 11,000 units out of an estimated possible 12,100 units, • Sales data: • Job 1> 4,000 units sold on credit for $25 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...
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Cost Flow Summary #1 Job 1 Job 2 Job 3 Direct Materials Direct Labor Factory OH Total Costs Total units to be produced Cost per Unit Finished Goods (Units) Finished Goods (Dollars) Cost Flow Summary #2 Job 1 Job 2 Job 3 Sales Revenue Cost of Goods Sold Gross Profit Gross Profit Percentage
Transcribed Image Text:Cost Flow Summary #1 Job 1 Job 2 Job 3 Direct Materials Direct Labor Factory OH Total Costs Total units to be produced Cost per Unit Finished Goods (Units) Finished Goods (Dollars) Cost Flow Summary #2 Job 1 Job 2 Job 3 Sales Revenue Cost of Goods Sold Gross Profit Gross Profit Percentage
Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 @ $10/unit • 5,500 units for Job 2 @ $15/unit • 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: • 5,000 units for Job 1 @ $10/unit • 4,000 units for Job 2 @ $15/unit • 10,000 unit for Job 3 @ $5/unit • Direct labor costs: • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour • Total factory overhead costs for the month: • $70,000 of indirect materials • $115,000 of indirect labor • $97,000 of utilities costs • $18,000 of factory depreciation • Production data: • Job 1 produced 5,000 units out of an estimated possible 8,000 units, • Job 2 produced 20,000 units out of an estimated possible 24,000 units • Job 3 produced 11,000 units out of an estimated possible 12,100 units, Sales data: • Job 1→ 4,000 units sold on credit for $25 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.
Transcribed Image Text:Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summarizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 @ $10/unit • 5,500 units for Job 2 @ $15/unit • 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: • 5,000 units for Job 1 @ $10/unit • 4,000 units for Job 2 @ $15/unit • 10,000 unit for Job 3 @ $5/unit • Direct labor costs: • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour • Total factory overhead costs for the month: • $70,000 of indirect materials • $115,000 of indirect labor • $97,000 of utilities costs • $18,000 of factory depreciation • Production data: • Job 1 produced 5,000 units out of an estimated possible 8,000 units, • Job 2 produced 20,000 units out of an estimated possible 24,000 units • Job 3 produced 11,000 units out of an estimated possible 12,100 units, Sales data: • Job 1→ 4,000 units sold on credit for $25 per unit • Job 2 → 18,000 units sold on credit for $30 per unit • Job 3 → 10,000 units sold on credit for $50 per unit To Do: Complete the T-Accounts on the following page, as well as the Cost Flow Worksheets. Helpful Hint: While not required for this assignment, it might be helpful to create the related journal entries.
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