Question

JOB ORDER COSTING PROBLEM        During May, $42,000 of direct materials were used on Job #...

JOB ORDER COSTING PROBLEM

       During May, $42,000 of direct materials were used on Job # 24, 320 hours of

      direct labor were charged at a rate of $25 per hour, and manufacturing

      overhead was applied at a rate of 75 % of direct labor costs. Job # 24 was

      completed during May and transferred to Finished Goods Inventory.

  1. What is the total cost of Job # 24?
  1. Prepare the journal entries to record the addition of Materials, Labor and

overhead to Job #24 and the transfer to Finished Goods Inventory (4 journal

entries required).

  1. Assume that Job # 24 was sold for cash at 250% of cost. What is the sales

price?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) Total Cost

Job #24
Direct material 42000
Direct labor (320*25) 8000
Overhead (8000*75%) 6000
Total Cost 56000

b) Journal entry

No General Journal Debit Credit
1 Work in process 42000
Direct material 42000
(To record direct material)
2 Work in process (320*25) 8000
Direct labor 8000
(To record labor)
3 Work in process 6000
Manufacturing overhead 6000
(To record overhead)
4 Finished goods 56000
Work in process 56000
(To record finished goods)

c) Sales price = 56000*2.5 = $140000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred:...
Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: May 1 Purchased materials on account for $29,680. 3 Requisitioned materials totaling $24,480 for use in production. Of the total, $9,220 was for Job 58, $8,940 for Job 59, and the remainder for Job 60. 31 Incurred direct labor for the month of $28,800, with an average wage of $16 per hour. Job 58 used 790 hours; Job 59, 590 hours; and Job 60,...
Dynamo Corporation uses a job order costing system. Five jobs were worked on during the current...
Dynamo Corporation uses a job order costing system. Five jobs were worked on during the current year. The predetermined overhead rate is 30% of direct labor costs. The following cost information is available (all materials and time ticket information apply to direct costs): Job Material Requisitions Time Tickets 101 $91,000 $36,000 102 $67,000 $62,300 103 $47,000 $55,500 104 $35,700 $42,000 105 $39,000 $92,750 Part 1—Complete the job cost sheets for each job. Job No. 101 Job No. 102 Job No....
The Lee Corporation uses a job-order costing system. The following data were recorded for June: June...
The Lee Corporation uses a job-order costing system. The following data were recorded for June: June 1 Added During June Job Number Work in Process Inventory Direct Materials Direct Labor 235 $2,600 $640 $430 236 $1,600 $860 $1,070 237 $1,090 $1,280 $1,870 238 $850 $1,640 $2,410 Overhead is charged to production at 65% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers....
During 2013, DougCo expected Job No. 26 to cost $490,000 of materials, $400,000 in direct labor...
During 2013, DougCo expected Job No. 26 to cost $490,000 of materials, $400,000 in direct labor labor and overhead of $600,000 at its normal predetermined overhead rate. DougCo applies overhead based on direct labor cost. Actual costs relating to Job No. 26 were $280,000 in overhead, $535,000 in materials used, and $210,000 in direct labor. All of the goods were completed. What amount was transferred to Finished Goods?
During 2017, Oriole Company expected Job No. 26 to cost $300000 of overhead, $500000 of materials,...
During 2017, Oriole Company expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Oriole applied overhead based on direct labor cost. Actual production required an overhead cost of $220000, $480000 in materials used, and $150000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?
Overhead applied to production Problem: ABC Corp. uses job order costing. Overhead applied to production is...
Overhead applied to production Problem: ABC Corp. uses job order costing. Overhead applied to production is at a predetermined rate of 80% based on direct labor costs. The following accounts appear in the general ledger of the company for the month of September 2020 Debits Work in process, September 1              $60,000 Direct Materials 120,000 Direct Labor 100,000 Factory overhead 80,000 On September 30, 2020 finished goods completed from work in process cost $320,000. Job No. 1 was the only...
Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3...
Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 [The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $240,000. Materials requisitions record use of the following materials for the month. Job 136 $48,500 Job 137 32,500 Job 138 19,200 Job 139 22,400 Job 140...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:         Job X32Z Beginning balance $ 5,000 Charged to the job during May Direct materials $ 8,000 Direct labor $ 2,000 Manufacturing overhead applied $ 4,000 Units completed 100 Units in process at the end of May 0 Units sold during May 40 In May, overhead...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory...
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:         Job X32Z Beginning balance $ 5,800 Charged to the job during May Direct materials $ 9,100 Direct labor $ 2,800 Manufacturing overhead applied $ 4,800 Units completed 180 Units in process at the end of May 0 Units sold during May 80 In May, overhead...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $211,000. Raw materials used in production, $190,000 ($152,000 direct materials and $38,000 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT