MANAGERIAL ACCT FOR MANAGERS LL\AC
MANAGERIAL ACCT FOR MANAGERS LL\AC
5th Edition
ISBN: 9781265872298
Author: Noreen
Publisher: MCG
Question
Book Icon
Chapter 3, Problem 1TF15

1.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Predetermined overhead rate

1.

Expert Solution
Check Mark

Answer to Problem 1TF15

Predetermined overhead rate is $7.95

Explanation of Solution

Total manufacturing overhead cost Y

  Y=a+b1X1+b2X2Y=$25000+(1.40×2500)+(2.20×1500)Y=$25000+3500+3300Y=$31,800

The total manufacturing overhead is $31800

  Predterminedoverheadrate=EstimatedtotalmanufacturingoverheadcostEstimatedtotalamountoftheallocationbase=$31,8004000=$7.95

Predetermined overhead rate is $7.95

2.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Manufacturing overhead applied to Job P and Q

2.

Expert Solution
Check Mark

Answer to Problem 1TF15

Manufacturing overhead applied to Job P is $18,285 and Q is $13,515

Explanation of Solution

Manufacturing overhead applied to job P and Q

    ParticularJob PJob Q
    a. Predetermined overhead rate$7.95$7.95
    b.Actual machine hour used 23001700
    a×bManufacturing overhead applied$18,285$13,515

Manufacturing overhead applied to Job P is $18,285 and Q is $13,515

3.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Total manufacturing cost applied to Job P

3.

Expert Solution
Check Mark

Answer to Problem 1TF15

Total manufacturing cost applied to Job P

Explanation of Solution

Total manufacturing cost assigned to job P

    Particular Amount $
    Direct materials13,000
    Direct labor21,000
    Manufacturing overhead 18,285
    Total manufacturing cost52,285

Total manufacturing cost applied to Job P is $52,285

4.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: The unit product cost for job P

4.

Expert Solution
Check Mark

Answer to Problem 1TF15

The unit product cost for job P is $2614.25

Explanation of Solution

Unit product cost:

  Unitproductcost=TotaljobcostNumberofunits=$52,28520=$2614.25

The unit product cost for job P is $2614.25

5.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Total manufacturing cost applied to Job Q

5.

Expert Solution
Check Mark

Answer to Problem 1TF15

Total manufacturing cost applied to Job Q is $29,015

Explanation of Solution

Total manufacturing cost assigned to job Q

    Particular Amount $
    Direct materials8,000
    Direct labor7500
    Manufacturing overhead 13,515
    Total manufacturing cost29,015

Total manufacturing cost applied to Job Q is $29,015

6.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: The unit product cost for job Q is $967.167

6.

Expert Solution
Check Mark

Answer to Problem 1TF15

The unit product cost for job Q

Explanation of Solution

Unit product cost:

  Unitproductcost=TotaljobcostNumberofunits=$29,01530=$967.167

The unit product cost for job Q is $967.167

7.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Selling price per unit of job P and Job Q.

7.

Expert Solution
Check Mark

Answer to Problem 1TF15

Selling price per unit of job P is $7705.65 and Job Q is $1740.90

Explanation of Solution

Selling price of Job P and Job Q

    ParticularJob P ($)Job Q ($)
    Total manufacturing cost52,28529,015
    Markup (80% of total manufacturing cost)41,82823,212
    Selling price of job 55094,11352,227

Selling price of job P is $94,113 and Q is $52,227

Selling price of P:

  Selling priceperunit=Sellingpriceforjobnumberofunits=$94,11320=$7705.65

Selling price of Q:

  Selling priceperunit=Sellingpriceforjobnumberofunits=$52,22730=$1740.90

Selling price per unit of job P is $7705.65 and Job Q is $1740.90

8.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Cost of goods sold.

8.

Expert Solution
Check Mark

Answer to Problem 1TF15

Cost of goods sold is $81,300

Explanation of Solution

    Particular Amount $
    Manufacturing cost of Job P52,285
    Manufacturing cost of Job Q29,015
    Cost of goods sold 81,300

Thus, Cost of goods sold is $81,300

9.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Predetermined overhead rate in the molding department.

9.

Expert Solution
Check Mark

Answer to Problem 1TF15

Predetermined overhead rate in the molding department is $12.20

Explanation of Solution

Total manufacturing overhead cost Y

  Y=a+bXY=$10000+1.40×2500)Y=$10000+3500Y=$13,500

The total manufacturing overhead for molding is $13,500

  Predterminedoverheadrate=EstimatedtotalmanufacturingoverheadcostEstimatedtotalamountoftheallocationbase=$13,5002500=$5.40

Predetermined overhead rate in the molding department is $5.40

For fabrication department:

Total manufacturing overhead cost Y

  Y=a+bXY=$15,000+2.20×1500Y=$15000+3300Y=$18,300

The total manufacturing overhead for molding is $18,300

  Predterminedoverheadrate=EstimatedtotalmanufacturingoverheadcostEstimatedtotalamountoftheallocationbase=$15,8001500=$12.20

Predetermined overhead rate in the molding department is $12.20

10.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Manufacturing overhead applied to Job P and Q

10.

Expert Solution
Check Mark

Answer to Problem 1TF15

Manufacturing overhead applied to Job P is $9180 and Q is $4320

Explanation of Solution

Manufacturing overhead applied to job P and Q from molding department

    ParticularJob PJob Q
    a. Predetermined overhead rate$5.40$5.40
    b.Actual machine hour used 2700800
    a×bManufacturing overhead applied$9180$4320

Manufacturing overhead applied to Job P is $9180 and Q is $4320

11.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Manufacturing overhead applied to Job P and Q

11.

Expert Solution
Check Mark

Answer to Problem 1TF15

Manufacturing overhead applied to Job P is $7320 and Q is $$10,980

Explanation of Solution

Manufacturing overhead applied to job P and Q from fabrication

    ParticularJob PJob Q
    a. Predetermined overhead rate$12.20$12.20
    b.Actual machine hour used 600900
    a×bManufacturing overhead applied$7320$10980

Manufacturing overhead applied to Job P is $7320 and Q is $$10,980

12.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Unit product cost job P

12.

Expert Solution
Check Mark

Answer to Problem 1TF15

Unit product cost job P is $2,525

Explanation of Solution

Unit product cost of job P

    ParticularAmount $
    Direct materials13000
    Direct labor 21000
    Manufacturing overhead
    Molding department 9180
    Fabrication department 7320
    Total manufacturing cost 50500
    Number of units20
    Unit product cost2525

Unit product cost job P is $2,525

13.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Unit product cost job Q

13.

Expert Solution
Check Mark

Answer to Problem 1TF15

Unit product cost job Q is $1027

Explanation of Solution

Unit product cost of job Q

    ParticularAmount $
    Direct materials8000
    Direct labor 7500
    Manufacturing overhead
    Molding department 4320
    Fabrication department 10980
    Total manufacturing cost 30800
    Number of units39
    Unit product cost1027

Unit product cost job Q is $1027

14.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Selling price for Job P and Job Q

14.

Expert Solution
Check Mark

Answer to Problem 1TF15

Selling price for Job P is $4545 and Job Q is $1848

Explanation of Solution

Selling price of job P and Q

    ParticularJob P $Job Q $
    Total manufacturing cost50,50030,800
    Markup (80% of Total manufacturing cost)40,40024,640
    Selling price 90,90055,440

Selling price for Job P is $90,900 and Job Q is $55,440

Selling price per unit

    ParticularJob P $Job Q $
    Selling price 90,90055,440
    Number of units 2030
    Selling price per unit 45451848

Selling price for Job P is $4545 and Job Q is $1848

15.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead.

To calculate: Cost of goods sold.

15.

Expert Solution
Check Mark

Answer to Problem 1TF15

Cost of goods sold is 81,300

Explanation of Solution

Cost of goods sold

    ParticularAmount $
    Manufacturing cost of job P50,500
    Manufacturing cost of job Q30,800
    Cost of goods sold 81,300

Cost of goods sold is 81,300

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education