Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost

Cost flows and overhead application

Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow.

• Job no. 636 was the only job in process on January 1 of the current year. The Work in Process account contained a $24,600 balance on this date.
• Jobs no. 637, 638, and 639 were started during January.
• Total direct material requisitions and direct labor incurred during January amounted to $89,200 and $114,500, respectively.
• The only job that remained in process on January 31 was job no. 638, with costs of $15,000 for direct materials and $20,000 for direct labor.

a. Compute the total cost of the work in process inventory on January 31.
b. Compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion.

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Godwin Fixtures Co. uses a job order cost system

Problem 19-2A (Pr19-2A) Godwin Fixtures Co. uses a job order cost system. The following data summarize the operations related to production for April 2008, the first mouth of operations:
a.) Materials purchased on account, $137,000.
b.) Materials requisitioned and factory labor used:
Job Materials Factory
No.601 $ 18,100 $17,000
No.602 20,000 25,500
No.603 13,050 9,700
No.604 34,500 33,550
No.605 15,700 14,800
No.606 17,800 18,300
For general factory use 6,600 47,000
c.) Factory overhead cost incurred on account, $4,950.
b.) Depreciation of machinery and equipment, $3,700.
c.) The factory overhead rate is $53 per machine hour. Machine hours used:
Job Machine Hours
No.601 215
No.602 230
No.603 175
No,604 300
N0.605 198
No.606 225
TOTAL 1,343
f.) Jobs completed: 601,602,603and 605.
g.) Jobs were shipped and customers were billed as fallows: Job 601,$72,750;Job 602,$88,780;Job 605,$74,500.

Instructions:
1.) Journalize the entries to record the summarized operations.
2.) Post the appropriate entries to t accounts for work in process and finished goods, using the identifying letters as dates. Insert memorandum account balances as of the end of the month.
3.) Prepare a schedule of unfinished jobs to support the balance in work in process account.
4.) Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.  

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ACC 561 Question 13-49 Variances

ACC 561 Question 13-49, Variances, on p. 622

Study Appendix 13. Consider the following data regarding factory overhead:
Variable Fixed
Budget for actual hours of input $45,000 $70,000
Applied 41,000 64,800
Budget for standard hours allowed
for actual output achieved ? ?
Actual incurred 48,500 68,500
Using the above data, fill in the following blanks with the variance amounts. Use F for favorable or U for unfavorable for each variance.
Total Overhead Variable Fixed
1. Spending variance ______ ______ ______
2. Efficiency variance ______ ______ ______
3. Production-volume variance ______ ______ ______
4. Flexible-budget variance ______ ______ ______
5. Underapplied overhead ______ ______ ______

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ACC 561 Question 13-48, Overhead Variances (Rivera Company)

ACC 561 Question 13-48, Overhead Variances, on p. 622

Study Appendix 13. Consider the following data for the Rivera Company:
Factory Overhead
Fixed Variable
Actual incurred $14,200 $13,300
Budget for standard hours allowed
for output achieved 12,500 11,000
Applied 11,600 11,000
Budget for actual hours of input 12,500 11,400
From the above information, fill in the blanks below. Be sure to mark your variances F for favorable
and U for unfavorable.
a. Flexible-budget variance $______ Fixed $______ Variable $______
b. Production-volume variance $______ Fixed $______ Variable $______
c. Spending variance $______ Fixed $______ Variable $______
d. Efficiency variance $______ Fixed $______ Variable $______

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