Question

Madison Inc. uses job order costing for its brand new line of sewing machines. The cost...

Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2011 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 40 machines. How much is the cost per machine?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Solution:
cost per machine $975
Working Notes:
materials 18000
direct labor costs, 9000
manufacturing overhead applied 6000
Beginning WIP balance 15,000
Less: Closing WIP -9,000
Total cost 39000
cost per machine = Total cost / no .of machines completed
=39,000/40
=$975
Please feel free to ask if anything about above solution in comment section of the question.
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
Sheffield Inc. uses job-order costing for its brand new line of homework machines. The cost incurred...
Sheffield Inc. uses job-order costing for its brand new line of homework machines. The cost incurred for production during 2020 totalled $6800 of materials, $2700 of direct labour costs, and $1000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totalled $5600, and the ending balance is $2700. During the year, the company completed 20...
13. Wasson Company reported the following year-end information: Beginning work in process inventory                          &nbsp
13. Wasson Company reported the following year-end information: Beginning work in process inventory                             $ 35,000 Beginning raw materials inventory                                    18,000 Ending work in process inventory                                     38,000 Ending raw materials inventory                                         15,000 Raw materials purchased                                                560,000 Direct labor                                                                      180,000 Manufacturing overhead                                                 120,000 How much is Wasson’s total cost of work in process for the year? Select one: a. $898,000 b. $608,000 c. $863,000 d. $860,000 14. When a job is completed and all costs have been accumulated on a job...
J Company has the following information for the year related to its job order costing system....
J Company has the following information for the year related to its job order costing system. Work-In Process - Beginning Inventory $ 18,000 Finished Goods - Beginning Inventory 12,000 Direct materials placed in production 80,000 Direct labor incurred 190,000 Actual manufacturing overhead incurred 300,000 Manufacturing overhead applied to production 295,000 Cost of jobs completed and transferred 500,000 The cost of J Company's ending inventory of Work in Process is:
7) Brand Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based...
7) Brand Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $225,700, variable manufacturing overhead of $3.00 per machine-hour, and 37,000 machine-hours. The company has provided the following data concerning Job A424 which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $ 910 Direct labor cost $ 1,820...
ob-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead...
ob-Order Costing Ace Custom Jewelry Company uses a job-order cost system. The company applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor hours. The estimated MOH was $135,000 for the year and the estimated direct labor hours were 15,000 hours. In May, Job #378 was completed. Direct materials totaled $8,500. Total labor costs were $14,000 at $16 per hour. At the end of the year, it was determined that the company worked 16,000 direct labor...
Radziewicz Inc. uses a job-order costing in which any underapplied or overapplied overhead is closed out...
Radziewicz Inc. uses a job-order costing in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company's cost of goods manufactured for December was $128,000 and its beginning and ending inventories were: Inventories Beginning Ending Work In Process $14,000 $16,000 Finished Goods $55,000 $42,000 During the month, the manufacturing overhead cost incurred was $66,000 and the manufacturing overhead cost applied was $69,000. Determine the cost of goods sold...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 40,000 Work in process $ 18,000 Finished goods $ 35,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct...
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,...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on...
Ravsten Company uses a job-order costing system.    The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 34,000 machine-hours and incur $176,800 in manufacturing overhead cost. The following transactions occurred during the year:    a. Raw materials requisitioned for use in production, $308,000 (80% direct and 20% indirect). b. The following costs were incurred for employee services:      Direct labor $ 179,000 Indirect labor $ 37,000...
Waldbauer Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed...
Waldbauer Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. In October the company completed job N66B that consisted of 10,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job N66B shows the following costs: Beginning balance $ 41,000 Direct materials $251,000 Direct labor cost $ 98,000 Manufacturing...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT