Concept explainers
As of May 1, there were two jobs in progress: Cococrunch Candy Bars, and Brite Toothpaste. The jobs for Verde Organic Salsa and Sparkle Dish Liquid were started during May. The jobs for Cococrunch Candy Bars and Sparkle Dish Liquid were completed during May.
- 1. Calculate JIP at the end of May.
Required
- 2. Calculate CCJ for May.
- 3. Calculate under- or overallocated overhead at the end of May.
- 4. Calculate the ending balances in JIP and CCJ if the under- or overallocated overhead amount is as follows:
- a. Written off to CCJ
- b. Prorated based on the ending balances (before proration) in JIP and CCJ
- c. Prorated based on the overhead allocated in May in the ending balances of JIP and CCJ (before proration)
- 5. Which method would you choose? Explain. Would your choice depend on whether overhead cost is underallocated or overallocated? Explain.
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Chapter 4 Solutions
COST ACCT
Additional Business Textbook Solutions
Construction Accounting And Financial Management (4th Edition)
Intermediate Accounting
Financial Accounting (12th Edition) (What's New in Accounting)
Intermediate Accounting (2nd Edition)
Financial Accounting
Horngren's Accounting (11th Edition)
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- Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?arrow_forwardExotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.arrow_forwardSource Documents For each of the following independent situations, give the source document that would be referred to for the necessary information. Required: 1. Direct materials costing 460 are requisitioned for use on a job. 2. Greiners Garage uses a job-order costing system. Overhead is applied to jobs based on direct labor hours. Which source document gives the number of direct labor hours worked on Job 2004-276? 3. Pasilla Investigative Services bills clients on a monthly basis for costs to date. Job 3-48 involved an investigator following the clients business partner for a week by automobile. Mileage is billed at number of miles times 0.75. 4. The foreman on the Jackson job wonders what the actual direct materials cost was for that job.arrow_forward
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