Problem 4Marvin Inc. produces special machines made to customer's specifications. Thefollowing data pertain to Job 109 composed of 20 drilling units with a total contractprice of P 25,000.Week endingApril 8P 2,400P 8.20/hourWeek endingApril 15P 1,300P 8.20/hourMaterials Department 1Direct labor rate - Dept. 1Labor hours used - Dept. IDirect labor rate -Labor hours used - Dept. 2Machine hours used - Dept. 2Applied factory overheadDepartment 1Department 2300200- Dept. 2P 8.00/hourP 8.00/hour15070200120P 4.00 per labor hourP 1.00 per machine hourMarketing and administrative costs are charged to each order at a rate of 25% of thecost to manufacture.Requirements:1. Compute the total direct materials cost of Job 109.2. Compute the total direct labor cost of the Job 109.3. Compute the total factory overhead applied to Job 109.4. Compute the total gross profit of the order.5. Compute the net income of the order.

Name: Problem 4Marvin Inc. produces special machines made to customer's spe
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Description: Problem 4Marvin Inc. produces special machines made to customer's specifications. Thefollowing data pertain to Job 109 composed of 20 drilling units with a total contractprice of P 25,000.Week endingApril 8P 2,400P 8.20/hourWeek endingApril 15P 1,30

Computation of total direct materials cost,total direct labour cost, total factory overhead, total…

Business

Accounting

price of P 25,000. Week ending April 8 P 2,400 P 8.20/hour Week ending April 15 P 1,300 P 8.20/hour Materials Department 1 Direct labor rate - Dept. 1 Labor hours used - Dept. I Direct labor rate - Dept. 2 Labor hours used - Dept. 2 Machine hours used - Dept. 2 Applied factory overhead Department 1 Department 2 300 200 P 8.00/hour P 8.00/hour 150 70 200 120 P 4.00 per labor hour P 1.00 per machine hour Marketing and administrative costs are charged to each order at a rate of 25% of the cost to manufacture. Requirements: 1. Compute the total direct materials cost of Job 109. 2. Compute the total direct labor cost of the Job 109. 3. Compute the total factory overhead applied to Job 109. 4. Compute the total gross profit of the order. 5. Compute the net income of the order.

price of P 25,000. Week ending April 8 P 2,400 P 8.20/hour Week ending April 15 P 1,300 P 8.20/hour Materials Department 1 Direct labor rate - Dept. 1 Labor hours used - Dept. I Direct labor rate - Dept. 2 Labor hours used - Dept. 2 Machine hours used - Dept. 2 Applied factory overhead Department 1 Department 2 300 200 P 8.00/hour P 8.00/hour 150 70 200 120 P 4.00 per labor hour P 1.00 per machine hour Marketing and administrative costs are charged to each order at a rate of 25% of the cost to manufacture. Requirements: 1. Compute the total direct materials cost of Job 109. 2. Compute the total direct labor cost of the Job 109. 3. Compute the total factory overhead applied to Job 109. 4. Compute the total gross profit of the order. 5. Compute the net income of the order.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...

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(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.
(Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith Company budgeted overhead of 129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, 2,750; direct labor cost, 5,355. The average wage for Smith Company employees is 17 per hour. By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year: Required: 1. Calculate the overhead rate for the year. 2. Calculate the total cost of Job K456. 3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year. 4. Is overhead overapplied or underapplied? By how much? 5. Assuming that the normal cost of goods sold for the year is 635,600, what is the adjusted cost of goods sold?
JOB ORDER COSTING TRANSACTIONS D K Enterprises makes wicker baskets. During the month of August, the company had four job orders: 501, 502, 503, and 504. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed. (a) Purchased raw materials on account, 44,000. (b) Issued direct materials to production: (c) Issued indirect materials to production, 5,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 3,300. (f) Paid electricity, heating oil, and repair bills for the factory and charged to production, 5,200. (g) Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows: (h) Finished Job Nos. 501-504 and transferred to the finished goods inventory account as products W, X, Y, and Z, respectively. (i) Sold products W, X, Y, and Z for 17,500, 18,000, 16,900, and 19,000, respectively. REQUIRED 1. Prepare general journal entries to record transactions (a) through (i). Make compound entries for (b), (d), and (g), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only.
Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000 for the year. Direct labor hours are estimated to be 80,000. For Bergan Company, (A) determine the predetermined factory overhead rate using direct labor hours as the activity base, (B) determine the amount of factory overhead applied to Jobs 200 and 305 in May using the data on direct labor hours from BE 16-2, and (C) prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate.
K company production was working on Job 1 and Job 2 during the month. Of the $780 in direct materials. $375 in materials was requested for Job 1. Direct labor cost, including payroll taxes, are $23 per hour, and employees worked 18 hours on Job 1 and 29 hours on Job 2. Overhead is applied at the rate of $20 per direct labor hours. Prepare job order cost sheets for each job.
Job 113 was completed at a cost of $5,000, and Job 85 was completed at a cost of $3,000 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.
JOB ORDER COSTING TRANSACTIONS Stonestreet Enterprises makes garage doors. During the month of February, the company had four job orders: 205, 206, 207, and 208. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed. (a) Purchased raw materials on account, 44,000. (b) Issued direct materials to production: (c) Issued indirect materials to production, 5,700. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 3,400. (f) Paid electricity, heating oil, and repair bills for the factory and charged to production, 5,300. (g) Applied factory overhead to each of the jobs using a predetermined factory over-head rate as follows: (h) Finished Job Nos. 205-208 and transferred to the finished goods inventory account as products L, M, N, and O, respectively. (i) Sold products L, M, N, and O, on account, for 21,000, 20,300, 19,000, and 20,500, respectively. REQUIRED 1. Prepare general journal entries to record transactions (a) through (i). Make compound entries for (b), (d), and (g), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only.
JOB ORDER COSTING TRANSACTIONS Stonestreet Enterprises makes garage doors. During the month of February, the company had four job orders: 205, 206, 207, and 208. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed. (a) Purchased raw materials on account, 44,000. (b) Issued direct materials to production: (c) Issued indirect materials to production, 5,700. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 3,400. (f) Paid electricity, heating oil, and repair bills for the factory and charged to production, 5,300. (g) Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows: (h) Finished Job Nos. 205208 and transferred to the finished goods inventory account as products L, M, N, and O. (i) Sold products L, M, N, and O, on account, for 21,000, 20,300, 19,000, and 20,500, respectively. REQUIRED 1. Prepare general journal entries to record transactions (a) through (i). 2. Post the entries to the work in process and finished goods accounts only.
Question No.7 Lyon Corporation has identified the following overhead costs and activity drivers for next year: Overhead Items Expected Costs Activity Drivers Expected Qty. Set-up costs Ordering costs Maintenance Power Rs.150,000 40,000 200,000 20,000 Number of set-ups Number of orders Machine hours Kilowatt hours 1,000 10,000 16,000 100,000 The following are two of the jobs completed during the year: Job XX Job YY Direct materials Rs.2,250 Rs.2,500 Direct labor Rs.3,000 Rs.1875 Units complete 375 300 Direct labor hours 90 110 Number of set-ups 6 8 Number of orders 8…
Reign Inc. produces special machines made to customer specifications. The following data pertain to Job 109 composed of 20 drilling units with a total contract price of P 25,000. Week ending April 8 Week ending April 15 Materials Department 1 P 2,400 P 1,300 Direct labor rate – Dept 1 P 8.20/ hour P 8.20 / hour Labor hours used – Dept 1 300 200 Direct labor rate – Dept 2 P 8.00 / hour P 8.00 / hour Labor hours used – Dept 2 150 70 Machine hours used – Dept 2 200 120 Applied factory overhead Department 1 P 4.00 per labor hour Department 2 P 1.00 per machine hour Marketing and administrative costs are charged to each order at a rate of 25% of the cost to manufacture. Requirements: Compute the total direct materials cost of Job 109. Compute the total direct labor cost of the Job 109. Compute the total factory overhead applied to Job 109. Compute the total gross profit…