EBK CORNERSTONES OF COST MANAGEMENT
4th Edition
ISBN: 8220103648561
Author: MOWEN
Publisher: Cengage Learning US
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Chapter 5, Problem 18E
Feldspar Company uses an ABC system to apply overhead. There are three activity rates, shown on page 251.
During September, Feldspar worked on three jobs. Data relating to these jobs follow:
During September, Jobs 13-280 and 13-282 were completed and transferred to Finished Goods Inventory. Job 13-280 was sold by the end of the month. Job 13-281 was the only unfinished job at the end of the month.
Required:
- 1. Calculate the per-unit cost of Jobs 13-280 and 13-282. (Round unit cost to nearest cent.)
- 2. Compute the ending balance in the work-in-process inventory account.
- 3. Prepare the
journal entries reflecting the completion of Jobs 13-280 and 13-282 and the sale of Job 13-280 on account. The selling price is 150 percent of cost.
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Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labo
hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 88,000 and estimated
factory overhead is $660,000. The following information is for September of the current year. Job A was completed during
September, and Job B was started but not finished.
September 1, inventories
Materials inventory
Work-in-process inventory (All Job A)
Finished goods inventory
Material purchases
Direct materials requisitioned
Job A
Job B
Direct labor hours
Job A
Job B
Labor costs incurred
Direct labor ($9.50/hour)
Indirect labor
Supervisory salaries
Rental costs
Factory
Administrative offices
Total equipment depreciation costs
Factory
Administrative offices
Indirect materials used
$ 7,900
32,000
69,000
110,000
69,000
35,500
4,600
3,900
80,750
13,900
6,400
7,400
2,200
8,100
2,200
12,400
Required:
1. What is the total cost of Job A?
2. What is the…
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Chapter 5 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
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