Answer Problem #2 : items 5 & 6
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Answer Problem #2 : items 5 & 6
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- (Appendix 4A) Journal Entries, Job Costs The following transactions occurred during the month of April for Nelson Company: a. Purchased materials costing 4,610 on account. b. Requisitioned materials totaling 4,800 for use in production, 3,170 for Job 518 and the remainder for Job 519. c. Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month. Direct laborers are paid at the rate of 14 per hour. d. Applied overhead using a plantwide rate of 6.20 per direct labor hour. e. Incurred and paid in cash actual overhead for the month of 973. f. Completed and transferred Job 518 to Finished Goods. g. Sold on account Job 517, which had been completed and transferred to Finished Goods in March, for cost (2,770) plus 25%. Required: 1. Prepare journal entries for Transactions a through e. 2. Prepare job-order cost sheets for Jobs 518 and 519. Prepare journal entries for Transactions f and g. (Note: Round to the nearest dollar.) 3. Prepare a schedule of cost of goods manufactured for April. Assume that the beginning balance in the raw materials account was 1,025 and that the beginning balance in the work-in-process account was zero.Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
- K company production was working on Job 1 and Job 2 during the month. Of the $780 in direct materials. $375 in materials was requested for Job 1. Direct labor cost, including payroll taxes, are $23 per hour, and employees worked 18 hours on Job 1 and 29 hours on Job 2. Overhead is applied at the rate of $20 per direct labor hours. Prepare job order cost sheets for each job.A company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
- (Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith Company budgeted overhead of 129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, 2,750; direct labor cost, 5,355. The average wage for Smith Company employees is 17 per hour. By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year: Required: 1. Calculate the overhead rate for the year. 2. Calculate the total cost of Job K456. 3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year. 4. Is overhead overapplied or underapplied? By how much? 5. Assuming that the normal cost of goods sold for the year is 635,600, what is the adjusted cost of goods sold?Overtime Allocation Albert Machine Tool Company produces tools on a job order basis. During May, two jobs were completed, and the following costs were incurred: Job 401 Job 402 Direct materials $28,000 $37,000 Direct labor: Regular 18,000 23,000 Overtime premium 6,000 Other factory costs for the month totaled $16,800. Factory overhead costs are allocated one- third to Job 401 and two-thirds to Job 402. a. Describe two alternative methods for assigning the overtime premium cost to Jobs 401 and 402 and explain how the appropriate method would be determined. b. Compute the cost of Job 401 and Job 402 under each of the two methods described in part a.E3-5 Overtime Allocation Arlin Fabrication Company produces tools on a job order basis. During May, two jobs were completed, and the following costs were incurred: Job 401Direct materials. $28,000 Direct labor: Regular 18,000 Job 402 Direct materials. $37,000 Direct labor: Regular 23,000 Overtime premium. 6,000 Other factory costs for the month totaled $16,800. Factory over- head costs are allocated one-third to Job 401 and two-thirds to Job 402. a. Describe two alternative methods for assigning the overtime premium cost to Jobs 401 and 402 and explain how the appro- priate method would be determined. b. Compute the cost of Jobs 401 and 402 under each of the two methods described in part a.
- Overtime Allocation Albert Machine Tool Company produces tools on a job order basis. During May, two jobs were completed, and the following costs were incurred: Job 401 Job 402 Di rect materials $28,000 $37,000 Di rect labor: Regular 18,000 23,000 Overtime premium 6,000 Other factory costs for the month totaled $16,800. Factory overhead costs are allocated one- third to Job 401 and two-thirds to Job 402. a. Describe two alternative methods for assigning the overtime premium cost to Jobs 401 and 402 and explain how the appropriate method would be determined. b. Compute the cost of Job 401 and Job 402 under each of the two methods described in part a.Problem 17: Predetermined Factory Overhead rate and Journal Entries Radiohead Corporation, which uses the job order costing system, had two jobs in process at the start of the year 2030: Job 101-P570,000 and Job 102- P237,000. The following information is available: ● ● Radiohead applies factory overhead on the basis of machine hours. Budgeted factory overhead and machine activity for the year were estimated to be P P4,320,000 and 120,000 hours, respectively. The company worked on three jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were: Job Number Direct Materials 101 108,000 102 103 222,000 Factory overhead during the first quarter included charges for depreciation amounting P120,000; indirect labor P300,000; indirect materials used P24,000; and other factory costs of P252,000. Radiohead completed job nos. 101 and 102. Job no. 101 was sold for cash, producing a gross profit of P147,600. Direct Labor 270,000 150,000iao 210,000…20. Ethel Company's job order system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January 2020, Ethel's transactions included the following: Direct materials issued to production Indirect materials issued to production 8,000 Manufacturing overhead incurred Manufacturing overhead applied Direct labor costs P 90,000 125,000 113,000 107,000 Ethel had neither beginning nor ending work-in process inventory, What was the cost of jobs completed in January 2020?
