Question

Handcrafts Inc. manufactures to customer order using the job order cost system. For the month just...

Handcrafts Inc. manufactures to customer order using the job order cost system. For the month just ended, it registered the following data:

Beginning work in process: P300,000

Cost of Orders completed: 2,400,000

Cost of Orders shipped: 2,000,000

Materials issued for the month: 1,700,000

Direct labor cost: 800,000

Factory overhead rate: 150% of direct labor cost

The ending work in process inventory was:

Select one:

a. P1,400,000

b. P1,600,000

c. P500,000

d. P700,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option B is correct

Total cost for the month = Materials issued for the month +  Direct labor cost + Factory overhead

=  1,700,000 + 800,000 + 150% of 800,000

=  1,700,000 + 800,000 + 1,200,000

= 3,700,000

work in progress during this month = Total cost for the month - Cost of Orders completed

= 3,700,000 -  2,400,000

= 1,300,000

The ending work in process inventory = Beginning work in process + work in progress during this month

= P300,000 + P1,300,000

=P 1,600,000

Thank You...........................

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
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,297,500 in manufacturing overhead cost at an activity level of 573,000 machine-hours. The company spent the entire month of January working on a large order for 12,300 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,267,500 in manufacturing overhead cost at an activity level of 569,000 machine-hours. The company spent the entire month of January working on a large order for 12,400 custom-made machined parts. The company had no work...
Z Company manufactures wooden, hand-carved figurines and uses a job order costing system. Last month on...
Z Company manufactures wooden, hand-carved figurines and uses a job order costing system. Last month on the “Pine” job, 180 units were made with 400 direct labor hours worked and $4,500 of direct materials used and $6,000 of direct labor used. Last month on the “Oak” job, 100 units were made with 200 direct labor hours worked and $2,700 of direct materials used and $3,000 of direct labor used. Last month on the “Cherry” job, 80 units were made with...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,240,200 in manufacturing overhead cost at an activity level of 573,000 machine-hours. The company spent the entire month of January working on a large order for 8,400 custom made machined parts. The company had no...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,170,000 in manufacturing overhead cost at an activity level of 556,000 machine-hours. The company spent the entire month of January working on a large order for 8,900 custom made machined parts. The company had no...
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets...
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 201 $3,620 Job 202 1,810 Job 203 1,430 Job 204 2,660 Factory supervision 1,240 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $14 per hour. If required, round final answers to the nearest dollar. a. Journalize the entry to...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel’s beginning and ending Work in Process Inventory are $15,500 and $27,000 respectively. Compute the cost of product transferred to Finished Goods Inventory $558,500....
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel’s beginning and ending Work in Process Inventory are $15,500 and $27,000 respectively. Compute the cost of jobs transferred to Finished Goods Inventory. Multiple...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $193,000 of raw...
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $193,000 of raw materials on credit; issued materials to production of $210,000 of which $15,000 were indirect. Minstrel incurred a factory payroll of $154,000, of which $25,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $193,000 during the month, compute the amount of under- or overapplied overhead: Multiple Choice $39,000 overapplied. $500...
Hildreth Company uses a job order cost system. The following data summarize the operations related to...
Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: Materials purchased on account, $2,120. Materials requisitioned and factory labor used: Job No. Materials Factory Labor 101 $1,820 $2,040 102 2,220 2,750 103 1,470 1,350 104 4,990 5,060 105 3,170 3,860 106 2,310 2,450 For general factory use 620 3,020 Factory overhead costs incurred on account, $3,480. Depreciation of machinery and equipment, $1,450. The factory overhead...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT