Question
At the end of June, Victory Manufacturing Inc. had $24,000 of raw materials on hand. During...
At the end of June, Victory Manufacturing Inc. had $24,000 of raw materials on hand. During the month, the company worked on three jobs. At the end of June, Job 123 was complete and ready to be shipped to the customer, while Jobs 124 and 125 were both in process. As of June 30th, the Job Cost Sheets for the three jobs reported the following:
| Job 123 | Job 124 | Job 125 | |
|
Direct materials |
$60,000 | $24,000 | $72,000 |
|
Direct labour |
$18,000 | $6,000 | $24,000 |
|
Manufacturing overhead |
$36,000 | $12,000 | $48,000 |
|
Manufacturing cost to date |
$114,000 | $42,000 | $144,000 |
During July, Victory Manufacturing Inc. completed Job 123, 124, and 125. As well, the company started and completed Jobs 126 and 127. Items in each of these orders were subsequently shipped to their respective customers in July. In addition, the company started but did not finish Job 128. As of July 31st, the Job Cost Sheets for the six jobs reported the following:
|
Job 123 |
Job 124 |
Job 125 |
Job 126 |
Job 127 |
Job 128 |
|
|
Direct materials |
$60,000 |
$30,000 |
$74,400 |
$36,000 |
$96,000 |
$18,000 |
|
Direct labour |
$18,000 |
$9,600 |
$25,200 |
$24,000 |
$36,000 |
$12,000 |
|
Manufacturing overhead |
$36,000 |
$19,200 |
$50,400 |
$48,000 |
$72,000 |
$24,000 |
|
Manufacturing cost to date |
$114,000 |
$58,800 |
$150,000 |
$108,000 |
$204,000 |
$54,000 |
In July, the company purchased $144,000 of raw materials.
Required
- What is the cost of direct materials used in the month of July?
- Discuss the difference between the direct materials purchased in a month and the direct materials for the month. (No calculations are needed to answer this question).
- What is the balance in the Raw Materials Inventory account on July 31st?
- What is the balance in the WIP Inventory account on July 31st?
- What is the balance in the Finished Goods Inventory account on July 31st?
- What is the Cost of Goods Manufactured for the month of July? (Hint: See pages 45-46 Statement of COGM and note that the Total Manufacturing Costs Incurred in Step 2 is for costs incurred in the current month.)
- What is the Cost of Goods Sold for the month of July?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Chase Inc. uses a job order costing system. The estimated manufacturing overhead for the year is...
Chase Inc. uses a job order costing system. The
estimated manufacturing overhead for the year is $3,500,000. The
company has decided to allocate the manufacturing overhead to
products on the basis of direct labour cost. The estimated direct
labour costs for the year are
$2,000,000.
What is the pre-determine fixed overhead rate that will be used
to apply fixed manufacturing overhead to products?
Job # 123 has accumulated $10,000 of direct materials
and $20,000 of direct labour costs. The rate...
1. Wedd Corporation had $35,000 of raw materials on hand on May 1. During the month,...
1. Wedd Corporation had $35,000 of raw materials on hand on May
1. During the month, the company purchased an additional $68,000 of
raw materials. During May, $92,000 of raw materials were
requisitioned from the storeroom for use in production. These raw
materials included both direct and indirect materials. The indirect
materials totaled $5,000. The debits to the Work in Process account
as a consequence of the raw materials transactions in May
total:
2. Desrevisseau Inc., a manufacturing company, has...
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the...
As of the end of June, the job cost sheets at Racing Wheels,
Inc., show the following total costs accumulated on three custom
jobs.
Job 102
Job 103
Job 104
Direct materials
$
31,000
$
71,000
$
47,000
Direct labor
10,000
28,300
43,000
Overhead applied
4,600
13,018
19,780
Job 102 was started in production in May, and the following costs
were assigned to it in May: direct materials, $14,000; direct
labor, $3,900; and overhead, $1,794. Jobs 103 and 104 were...
Junel Co's manufacturing operations: Inventories 03/01/2012 3/31/2012 Direct Materials 36,000 30,000 Work in Process 18,000 12,000...
Junel Co's manufacturing operations:
Inventories 03/01/2012 3/31/2012
Direct Materials 36,000 30,000
Work in Process 18,000 12,000
Finished goods 54,000 72,000
Additional information for the month of March 2012:
Direct materials purchased 84,000
Direct manufacturing labor payroll 60,000
Direct manufacturing labor rate per hour 7.5
Factory overhead rate per direct labor hour 10
For the month of March 2012 prime cost was?
a.) 144,000
b.)150,000
c.)120,000
d.) 90,000
Marcelino Co.'s March 31 inventory of raw materials is $87,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $87,000.
Raw materials purchases in April are $530,000, and factory payroll
cost in April is $378,000. Overhead costs incurred in April are:
indirect materials, $59,000; indirect labor, $21,000; factory rent,
$36,000; factory utilities, $21,000; and factory equipment
depreciation, $56,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $650,000 cash in April.
Costs of the three jobs worked on in April follow.
Job 306
Job...
Marcelino Co.'s March 31 inventory of raw materials is $85,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $85,000.
Raw materials purchases in April are $510,000, and factory payroll
cost in April is $382,000. Overhead costs incurred in April are:
indirect materials, $55,000; indirect labor, $25,000; factory rent,
$32,000; factory utilities, $20,000; and factory equipment
depreciation, $55,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $685,000 cash in April.
Costs of the three jobs worked on in April follow.
Job 306
Job...
Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw
materials purchases in April are $560,000, and factory payroll cost
in April is $376,000. Overhead costs incurred in April are:
indirect materials, $51,000; indirect labor, $21,000; factory rent,
$39,000; factory utilities, $19,000; and factory equipment
depreciation, $57,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $690,000 cash in April.
Costs of the three jobs worked on in April follow.
Job 306
Job...
Exercise 2-3 Analysis of cost flows LO C2 As of the end of June, the job...
Exercise 2-3 Analysis of cost flows LO C2
As of the end of June, the job cost sheets at Racing Wheels,
Inc., show the following total costs accumulated on three custom
jobs.
Job 102
Job 103
Job 104
Direct
materials
$
25,000
$
48,000
$
64,000
Direct labor
13,000
26,900
39,000
Overhead applied
4,810
9,953
14,430
Job 102 was started in production in May and the following costs
were assigned to it in May: direct materials, $12,000; direct
labor, $3,800;...
On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month, the...
On August 1, Shead Corporation had $35,000 of raw materials on
hand. During the month, the company purchased an additional $56,000
of raw materials. During August, $69,000 of raw materials were
requisitioned from the storeroom for use in production. These raw
materials included both direct and indirect materials. The indirect
materials totaled $6,000. Prepare journal entries to record these
events. Use those journal entries to answer the following
questions: The debits to the Manufacturing Overhead account as a
consequence of...
1. Boursaw Corporation has provided the following data concerning last month’s operations. Purchases of raw materials...
1. Boursaw Corporation has provided the following data
concerning last month’s operations.
Purchases of raw materials
$
33,000
Indirect materials included in manufacturing overhead
$
4,000
Direct labor cost
$
58,000
Manufacturing overhead applied to Work in Process
$
78,000
Underapplied overhead
$
5,000
Beginning
Ending
Raw materials inventory
$
10,000
$
15,000
Work in process inventory
$
56,000
$
72,000
Finished goods inventory
$
41,000
$
49,000
Any underapplied or overapplied manufacturing overhead is closed
out to cost of...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 13 minutes ago
asked 14 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago