PR 17-2A Staircase Equipment Company uses a job order cost system. The following data summarize the operations related to production for April 2010, the first month of operations:
a. Materials purchased on account, $23,400.
b. Materials requisitioned and factory labor used:
Job Materials Factory Labor
No. 201 2,350 2,200
No. 202 2,875 2,970
No. 203 1,900 1,490
No. 204 6,450 5,460
No. 205 4,100 4,150
No. 206 2,980 2,650
General factory use 860 3,250
c. Factory overhead costs incurred on account, $4,500.
d. Depreciation of machinery and equipment, $1,560.
e. The factory overhead rate is $50. per machine hour. Machine hours used:
Job Machine Hours
No. 201 18
No. 202 30
No. 203 24
No. 204 75
No. 205 33
No. 206 20
Total 200
f. Jobs completed: 201, 202, 203, and 205.
g. Jobs were shipped and customers were billed as follows: Job201, $6,540; Job 202, $8,820; Job 203, $11,880.
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 memo account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Click here for the solution: Staircase Equipment Company uses a job order cost system
Showing posts with label job order cost system. Show all posts
Showing posts with label job order cost system. Show all posts
Wednesday, October 14, 2015
Thursday, September 10, 2015
Keltner Co. uses a job order cost system
PR 19-1A Keltner Co. uses a job order cost system. The following data summarize the operations related to production for November:
a. Materials purchased on account, $350,000.
b. Materials requisitioned, $275,000, of which $35,000 was for general factory use.
c. Factory labor used, $324,500, of which $45,500 was indirect.
d. Other costs incurred on account were for factory overhead, $128,600; selling expenses, $116,400; and administrative expenses, $72,500.
e. Prepaid expenses expired for factory overhead were $14,500; for selling expenses, $12,300; and for administrative expenses, $8,900.
f. Depreciation of office building was $42,000; of office equipment, $21,500; and of factory equipment, $14,500.
g. Factory overhead costs applied to jobs, $256,400.
h. Jobs completed, $726,500.
i. Cost of goods sold, $715,000.
Instructions
Journalize the entries to record the summarized operations.
Click here for the solution: Keltner Co. uses a job order cost system
a. Materials purchased on account, $350,000.
b. Materials requisitioned, $275,000, of which $35,000 was for general factory use.
c. Factory labor used, $324,500, of which $45,500 was indirect.
d. Other costs incurred on account were for factory overhead, $128,600; selling expenses, $116,400; and administrative expenses, $72,500.
e. Prepaid expenses expired for factory overhead were $14,500; for selling expenses, $12,300; and for administrative expenses, $8,900.
f. Depreciation of office building was $42,000; of office equipment, $21,500; and of factory equipment, $14,500.
g. Factory overhead costs applied to jobs, $256,400.
h. Jobs completed, $726,500.
i. Cost of goods sold, $715,000.
Instructions
Journalize the entries to record the summarized operations.
Click here for the solution: Keltner Co. uses a job order cost system
Sunday, August 23, 2015
Ramirez Company manufactures goods to special order and uses a job order cost system
Job order cost; journal entries; ending work in process; inventory analysis
Problem 1-8 Ramirez Company manufactures goods to special order and uses a job order cost system. During its first month of operations, the following selected transactions took place:
a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,000
b. Materials issued to the factory:
Job 101 $ 2,200
Job 102 5,700
Job 103 7,100
Job 104 1,700
For general use in the factory 1,350
c. Factory wages and salaries earned:
Job 101 $ 2,700
Job 102 6,800
Job 103 9,200
Job 104 2,100
For general work in the factory 2,250
d. Miscellaneous factory overhead costs on account . . . . . . . . . . . . . . . $ 2,400
e. Depreciation of $2,000 on the factory machinery recorded.
f. Factory overhead allocated as follows:
Job 101 $ 1,200
Job 102 2,000
Job 103 3,800
Job 104 1,000
g. Jobs 101, 102, and 103 completed.
h. Jobs 101 and 102 shipped to the customer and billed at $30,900.
Required:
1. Prepare a schedule reflecting the cost of each of the four jobs.
2. Prepare journal entries to record the transactions. (One control account is used for Work in Process.)
3. Compute the ending balance in Work in Process.
4. Compute the ending balance in Finished Goods.
Click here for the solution: Ramirez Company manufactures goods to special order and uses a job order cost system
Problem 1-8 Ramirez Company manufactures goods to special order and uses a job order cost system. During its first month of operations, the following selected transactions took place:
a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,000
b. Materials issued to the factory:
Job 101 $ 2,200
Job 102 5,700
Job 103 7,100
Job 104 1,700
For general use in the factory 1,350
c. Factory wages and salaries earned:
Job 101 $ 2,700
Job 102 6,800
Job 103 9,200
Job 104 2,100
For general work in the factory 2,250
d. Miscellaneous factory overhead costs on account . . . . . . . . . . . . . . . $ 2,400
e. Depreciation of $2,000 on the factory machinery recorded.
f. Factory overhead allocated as follows:
Job 101 $ 1,200
Job 102 2,000
Job 103 3,800
Job 104 1,000
g. Jobs 101, 102, and 103 completed.
h. Jobs 101 and 102 shipped to the customer and billed at $30,900.
Required:
1. Prepare a schedule reflecting the cost of each of the four jobs.
2. Prepare journal entries to record the transactions. (One control account is used for Work in Process.)
3. Compute the ending balance in Work in Process.
4. Compute the ending balance in Finished Goods.
Click here for the solution: Ramirez Company manufactures goods to special order and uses a job order cost system
Wednesday, July 8, 2015
(Computations using a job order system) General Corporation employs a job order cost system
Computations using a job order system
General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;
Work in process $ 35,200
Finished goods 86,900
Cost of goods sold 128,700
Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:
Direct Materials Direct Labor
Job No. Amount Job No. Amount
101 $5,000 101 $7,800
115 19,500 103 20,800
116 36,200 115 42,000
Other 35,800 116 18,000
$96,500 Other 25,900
$114,500
Job no. 115 was the only job in process at the end of the month. Job no. 101 and three "other" jobs were sold during May at a profit of 20% of cost. The "other" jobs contained material and labor charges of $21,000 and $17,400, respectively.
General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm's fiscal year ends on May 31.
Instructions:
a. Compute the total overhead applied to production during May.
b. Compute the cost of the ending work in process inventory.
c. Compute the cost of jobs completed during May.
d. Compute the cost of goods sold for the year ended May 31.
Click here for the solution: (Computations using a job order system) General Corporation employs a job order cost system
General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;
Work in process $ 35,200
Finished goods 86,900
Cost of goods sold 128,700
Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:
Direct Materials Direct Labor
Job No. Amount Job No. Amount
101 $5,000 101 $7,800
115 19,500 103 20,800
116 36,200 115 42,000
Other 35,800 116 18,000
$96,500 Other 25,900
$114,500
Job no. 115 was the only job in process at the end of the month. Job no. 101 and three "other" jobs were sold during May at a profit of 20% of cost. The "other" jobs contained material and labor charges of $21,000 and $17,400, respectively.
General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm's fiscal year ends on May 31.
Instructions:
a. Compute the total overhead applied to production during May.
b. Compute the cost of the ending work in process inventory.
c. Compute the cost of jobs completed during May.
d. Compute the cost of goods sold for the year ended May 31.
Click here for the solution: (Computations using a job order system) General Corporation employs a job order cost system
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