Werizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At th Deginning of the most recent year, the company estimated its manufacturing overhead cost at $189,120. Estimated direct labor cost was $459,010 for 19,700 hours. Actual costs for the most recent month are summarized here: Item Description. Direct labor (1,500 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Total Cost $ 45,902 2,440 3,400 3,350 4,850

Werizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At th Deginning of the most recent year, the company estimated its manufacturing overhead cost at $189,120. Estimated direct labor cost was $459,010 for 19,700 hours. Actual costs for the most recent month are summarized here: Item Description. Direct labor (1,500 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Total Cost $ 45,902 2,440 3,400 3,350 4,850

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Description: pdfE2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or UnderappliedOverhead Costs [LO 2-3, 2-4, 2-5, 2-6]Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct l

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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Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.
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OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
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