MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 3, Problem 3.5E
1.
To determine
Concept introduction:
Predetermined overhead allocation:
Predetermined overhead allocation is a method of allocation of overhead costs to the product units. Under this method, the overhead costs are allocated to the product units using the allocation base. The allocation base is identified based on the type of production activities.
To calculate: The amount of overhead cost assigned to the job.
2.
To determine
Concept introduction:
Predetermined overhead allocation:
Predetermined overhead allocation is a method of allocation of overhead costs to the product units. Under this method, the overhead costs are allocated to the product units using the allocation base. The allocation base is identified based on the type of production activities.
To calculate: The unit product cost for the job.
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The following information is for Punta Company for July:
a. Factory overhead costs were applied to jobs at the predetermined rate of $50.00 per labor hour. Job Sincurred 6,250 labor hours;
Job T used 4,350 labor hours.
b. Job S was shipped to customers during July.
c. Job T was still in process at the end of July.
d. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July.
e. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows:
"
Utilities
Depreciation
Insurance
Total
f. Direct materials and indirect materials used are as follows:
$ 16,500
48,750
Job
Job T
Indirect labor
Total
$
19,500
84,750
Job S
$ 32,250
Job T
$75,000
37,250
14,250
$46,500 $ 112,250
Total
107,250
$
51,500
158,750
214,750
$373,500
Material A
Material B
Subtotal
Indirect materials
Total
g. Direct labor incurred for the two jobs and indirect labor are as follows:
$ 63,000
52,500
148,000
$263,500…
Problem 1. BJ Manufacturing Company uses Job Order Costing system to accumulate
production costs. At the beginning of the year, the balances of the inventory accounts
are as follows:
P168,000
210,000
Raw Materials Inventory
Work in Process Inventory
Job 101..
Job 102..
P105,000
105,000
Finished Goods Inventory
Job 005.
Job 006.
182,000
P 85,000
97,000
The summaries of transactions for the year are as follows:
(a) Raw Materials costing P826,000 were purchased on account.
(b) Materials issued to production, P785,000 distributed as follows:
Job 101 P180,000
Job 102 P125,000
Indirect balance
Job 103 P150,000
Job 104 P205,000
Job 105 P95,000
(c) Heat, light and power, factory plant, for the year was P116,000.
(d) Depreciation for factory plant for the year, P190,000
(e) Marketing and administrative expenses, P250,000
(f) Production wages for the year was P1,250,000 of which 20% is for indirect laborers.
The direct wages were distributed as:
Job 101, 15%; Job 102, 20%; Job 103, 25%; Job 104,…
ob cost sheets show the following information:
Job
January
February
March
Completed
Sold
AA2
$2,600
$1,000
February
Not sold
AA4
4,837
January
February
AA5
3,260
February
March
AA3
3,411
$2,320
April
Not sold
Total
$7,437
$7,671
$2,320
What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for January, February, and March?
Work inProcess
FinishedGoods
COGS
January
$fill in the blank 1
$fill in the blank 2
February
fill in the blank 3
fill in the blank 4
$fill in the blank 5
March
fill in the blank 6
fill in the blank 7
fill in the blank 8
Chapter 3 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - Prob. 3.13QCh. 3 - Prob. 1AECh. 3 - Prob. 1TF15Ch. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16PCh. 3 - Prob. 3.17PCh. 3 - Prob. 3.18PCh. 3 - Prob. 3.19PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Plantwide versus Multiple Predetermined Overhead...Ch. 3 - Prob. 3.25PCh. 3 - Prob. 3.26C
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