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ACCT 1B Lecture Notes - Lecture 22: Sales Order, Earnings Before Interest And Taxes, Cost Driver

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School
Irvine Valley College
Department
Accounting
Course
ACCT 1B
Professor
johnson

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Document Summary

Allocation base such as direct labour hours, direct labour dollars, or machine hours, is used to assign manufacturing overhead to individual jobs. The flow of documents in a job-order costing sytem: sales order production order direct labour time or materials requisition form or predetermined overhead rates job cost sheet. You can"t determine oh cost till end of the year. Cogm goes down cogs goes down: operating income will go up if cogs down, disposition of under applied oh. Oh goes up mfg. costs goes up. Cogs goes up op. goes up. Process costing system used in those manufacturing situation where a single, homogenous product (cement or oil) flows in a continuous stream out of the production process. Unit product cost = total manufacturing cost / total units produced (l, kg, bottles) Job-order costing is used where many different products or services are produced each period example: many types of jeans for male and female.

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Related Questions

1. Blaine Corp. makes floats for Mardi Gras in New Orleans. Thecompany's fiscal year ends on March 31. On January 1, 2010, thecompany's WIP Inventory account appeared as follows:
Work In Progress Inventory
Beginning Balance 916,650 / Cost of completed jobs?????
direct material 589,670
direct labor 159,600
applied over-head 127,680

The direct labor cost contained in the beginning balance of WIPInventory was for a total of 15,200 direct labor hours (DLHs).During January, 7,600 DLHs were recorded. Only one job was still inprocess on January 31. That job had $73,250 in direct material and2,850 DLHs assigned to it.

a. If overhead is applied on the basis of DLHs, what predeterminedOH rate was in effect during the company's 2009–2010 fiscal year?Round your answer to the nearest cent.
$ per DLH

b. What was the average direct labor rate per hour?
$ per DLH

c. What amount of direct material cost was in the beginning balanceof WIP Inventory?
$ DM in beginning WIP

d. What was the balance in WIP Inventory at the end ofJanuary?
$

e. What was the total cost of jobs manufactured in January?
$

2. Your Open QuestionShow me another »
Need help with accounting problem!?
Insides, an interior decorating firm, uses a job order costingsystem and applies overhead to jobs using a predetermined rate of$17 per direct labor hour. On June 1, 2010, Job #918 was the onlyjob in process. Its costs included direct material of $8,250 anddirect labor of $500 (25 hours at $20 per hour). During June, thecompany began work on Jobs #919, #920, and #921. Direct materialused for June totaled $21,650. June's direct labor cost totaled$6,300. Job #920 had not been completed at the end of June, and itsdirect material and direct labor charges were $2,850 and $800,respectively. All other jobs were completed in June.

a. What was the total cost of Job #920 as of the end of June2010?
$

b. What was the cost of goods manufactured for June 2010?
$

c. If actual overhead for June was $5,054, was the overheadunderapplied or overapplied for the month? By how much?

SelectOverappliedUnderappliedItem 3 OH $