The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and s5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C S51,250 256,400 November 1 Bal. b/f Direct Materials Used Other transactions incurred: • Indirect material issued to production was S40,360 • Total manufacturing labour incurred in November was s368,000, 75% of this amount represented direct labour. • Other manufacturing overhead costs incurred for November amounted to s340,490. Two jobs were completed with total costs of s384.000 & sz70,000 respectively. They were sold on account at a margin of 33K% on sales.
The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and s5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C S51,250 256,400 November 1 Bal. b/f Direct Materials Used Other transactions incurred: • Indirect material issued to production was S40,360 • Total manufacturing labour incurred in November was s368,000, 75% of this amount represented direct labour. • Other manufacturing overhead costs incurred for November amounted to s340,490. Two jobs were completed with total costs of s384.000 & sz70,000 respectively. They were sold on account at a margin of 33K% on sales.
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 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
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