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Problem 3. Sunshine Manufacturing Company uses a job order cost system in its two producing departments, Assembly and Finishing. The company projected the following production data for the current year: Assembly 80,000 25,000 P960,000 Finishing 28,000 75,000 P600,000 Direct labor hours Machine hours Manufacturing OH Two jobs are in process at the beginning of the year and three more were started during the 6-months period ended June 30. Sunshine Company applies overhead in the Assembly department based on direct labor hours and based on machine hours in the Finishing department. Below is the summary of cost incurred for each job and their status at the end of June. Direct labor cost is P5.50 per hour. Job Job Beta Alpha P35,000 P50,000 Job Charlie Job Delta Job Echo Bal. 1/1 Assembly Department: DL hrs 8,000 1,500 14,000 2,500 9,000 3,000 6,000 2,800 P50,000 4,000 3,200 P25,000 Mach hrs Materials P25,000 P30,000 P40,000 Finishing Department: DL Hrs Mach hrs 3,500 10,000 1,800 6,500 Materials P12,000 P25,000 P30,000 Sold 2,000 11,000 3,200 7,500 P2,000 Sold Completed incomplete & on hand 2,800 3,000 P5,000 Job Status Sold Required: Determine the following: 1) Predetermined OH rate 2) Amount of overhead applied to each job 3) Total manufacturing costs per job 11/12

Problem 3. Sunshine Manufacturing Company uses a job order cost system in its two producing departments, Assembly and Finishing. The company projected the following production data for the current year: Assembly 80,000 25,000 P960,000 Finishing 28,000 75,000 P600,000 Direct labor hours Machine hours Manufacturing OH Two jobs are in process at the beginning of the year and three more were started during the 6-months period ended June 30. Sunshine Company applies overhead in the Assembly department based on direct labor hours and based on machine hours in the Finishing department. Below is the summary of cost incurred for each job and their status at the end of June. Direct labor cost is P5.50 per hour. Job Job Beta Alpha P35,000 P50,000 Job Charlie Job Delta Job Echo Bal. 1/1 Assembly Department: DL hrs 8,000 1,500 14,000 2,500 9,000 3,000 6,000 2,800 P50,000 4,000 3,200 P25,000 Mach hrs Materials P25,000 P30,000 P40,000 Finishing Department: DL Hrs Mach hrs 3,500 10,000 1,800 6,500 Materials P12,000 P25,000 P30,000 Sold 2,000 11,000 3,200 7,500 P2,000 Sold Completed incomplete & on hand 2,800 3,000 P5,000 Job Status Sold Required: Determine the following: 1) Predetermined OH rate 2) Amount of overhead applied to each job 3) Total manufacturing costs per job 11/12

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
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 21E: Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the...
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Problem 3. Sunshine Manufacturing Company uses a job order cost system in its two producing departments, Assembly and Finishing. The company projected the following production data for the current year: Assembly 80,000 25,000 P960,000 Finishing 28,000 75,000 P600,000 Direct labor hours Machine hours Manufacturing OH Two jobs are in process at the beginning of the year and three more were started during the 6-months period ended June 30. Sunshine Company applies overhead in the Assembly department based on direct labor hours and based on machine hours in the Finishing department. Below is the summary of cost incurred for each job and their status at the end of June. Direct labor cost is P5.50 per hour. Job Job Charlie Job Delta Job Echo Job Alpha Beta Bal. 1/1 P35,000 P50,000 Assembly Department: DL hrs Mach hrs Materials P25,000 P30,000 P40,000 Finishing Department: DL Hrs Mach hrs 8,000 1,500 14,000 2,500 9,000 3,000 6,000 2,800 P50,000 4,000 3,200 P25,000 3,500 10,000 1,800 6,500 Materials P12,000 P25,000 P30,000 Sold 3,200 7,500 P2,000 Sold Completed incomplete & on hand 2,000 11,000 2,800 3,000 P5,000 Job Sold Status Required: Determine the following: 1) Predetermined OH rate 2) Amount of overhead applied to each job 3) Total manufacturing costs per job 4) Gross profit per job assuming a markup on cost of 40% 11/12
Transcribed Image Text:Problem 3. Sunshine Manufacturing Company uses a job order cost system in its two producing departments, Assembly and Finishing. The company projected the following production data for the current year: Assembly 80,000 25,000 P960,000 Finishing 28,000 75,000 P600,000 Direct labor hours Machine hours Manufacturing OH Two jobs are in process at the beginning of the year and three more were started during the 6-months period ended June 30. Sunshine Company applies overhead in the Assembly department based on direct labor hours and based on machine hours in the Finishing department. Below is the summary of cost incurred for each job and their status at the end of June. Direct labor cost is P5.50 per hour. Job Job Charlie Job Delta Job Echo Job Alpha Beta Bal. 1/1 P35,000 P50,000 Assembly Department: DL hrs Mach hrs Materials P25,000 P30,000 P40,000 Finishing Department: DL Hrs Mach hrs 8,000 1,500 14,000 2,500 9,000 3,000 6,000 2,800 P50,000 4,000 3,200 P25,000 3,500 10,000 1,800 6,500 Materials P12,000 P25,000 P30,000 Sold 3,200 7,500 P2,000 Sold Completed incomplete & on hand 2,000 11,000 2,800 3,000 P5,000 Job Sold Status Required: Determine the following: 1) Predetermined OH rate 2) Amount of overhead applied to each job 3) Total manufacturing costs per job 4) Gross profit per job assuming a markup on cost of 40% 11/12
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