1. A job order cost sheet for Sheridan Company is as
follows.
Job No. 92 |
For 2,000 Units |
|||||
---|---|---|---|---|---|---|
|
Direct |
Direct |
Manufacturing |
|||
Beg. bal. Jan. 1 |
6,500 |
7,400 |
5,920 |
|||
8 |
7,400 |
|||||
12 |
8,400 |
6,888 |
||||
25 |
2,900 |
|||||
27 |
4,400 |
3,608 |
||||
16,800 |
20,200 |
16,416 |
Cost of completed job: | ||
Direct materials | $16,800 | |
Direct labor | 20,200 | |
Manufacturing overhead | 16,416 | |
Total cost | $53,416 | |
Unit cost ($53,416 ÷ 2,000) | $26.71 |
On the basis of this data, answer the following questions.
(a) What was the balance in Work in Process Inventory on January 1
if this was the only unfinished job?
Balance in Work in Process Inventory on January 1 | $enter the Balance in Work in Process Inventory on January 1 in dollars |
(b) If manufacturing overhead is applied on the basis of direct
labor cost, what overhead rate was used in each year?
(Round answers to 0 decimal places, e.g.
55%.)
Last year |
Current year |
|||||
---|---|---|---|---|---|---|
Overhead rate |
enter overhead rate in percentages rounded to 0 decimal places |
% |
enter overhead rate in percentages rounded to 0 decimal places |
% |
2. In March, Sheridan Company completes its only two jobs in
process, Jobs 10 and 11. Job 10 cost $26,600 and Job 11 $37,000. On
March 31, Job 10 is sold.
Record the completion of the two jobs and the sale of Job 10.
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
Manufacturing Costs | Work in Process Inventory | Finished Goods Inventory | Cost of Goods Sold | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Raw Materials Inventory | Factory Labor | Manufacturing Overhead | |||||||||||
Balance | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||||||
Completion of Jobs: | |||||||||||||
Job 10 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||||
Job 11 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||||
Job sold: | |||||||||||||
Job 10 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||||
Balance | $enter a total amount | $enter a total amount | $enter a total amount | $enter a total amount | $enter a total amount | $enter a total amount |
[1]
[a] |
Balance in WIP on Jan 1 |
$19,820 |
[6500+7400+5920] |
[b] |
Overhead rate: |
||
Last Year [$5920 / 7400] |
80% |
||
This Year [$6888 / 8400] |
82% |
[2]
Raw Material Inventory |
Factory Labor |
Manufacturing Overhead |
WIP Inventory |
FG Inventory |
Cost of goods Sold |
|
Balance |
$63,600 |
|||||
Completion of Jobs: |
||||||
Job 10 |
($26,600) |
$26,600 |
||||
Job 11 |
($37,000) |
$37,000 |
||||
Job Sold: |
||||||
Job 10 |
($26,600) |
$26,600 |
||||
Balance |
$0 |
$0 |
$0 |
$0 |
$37,000 |
$26,600 |
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