ACCT 202 Lecture Notes - Lecture 1: Tax Avoidance, Financial Statement, Income Statement
Get access
Related Documents
Related Questions
Stellar Sound, Inc. which uses a job-order costing system, had twojobs in process at the start of 20x1: job no. 64 ($84,100) and jobno. 65 ($53,300). The following information is available:
a. The company applies manufacturing overhead onthe basis of machine hours (based on practical capacity). Budgetedoverhead and machine activity for the year were anticipated to be$808,000, and 16,000 hours, respectively.
b. The company worked on four jobs during the firstquarter. Direct materials used, direct labor incurred, and machinehours consumed were as follows:
job no | direct material | direct labor | machine hours |
64 | 21,000 | 35,000 | 1200 |
65 | 22000 | 700 | |
66 | 44,000 | 65000 | 2000 |
67 | 15000 | 8800 | 500 |
c. Manufacturing overhead during the firstquarter included charges for depreciation ($33,900), indirect labor($60,100), indirect materials used ($5,100), and other factorycosts ($139,600).
d. Stellar Sound completed job no. 64 and job no. 65.Job no. 65 was sold on account, producing a profit of $34,900 forthe firm.
1A. Journal entry for completion of job no 64 and65
debit finished goods at ? amount
credit works in process at ?? amount
1B. Journal entry for job no 65
Debit A/R at ???? amount
Credit sales revenue at ???? amount
Debit cost of goods sold at ???? amount
Credit finished goods at???? amount
2. Determine the cost of the jobs still in production asof March 31.
3. Did the finished-goods inventory increase ordecrease during the first quarter? By how much?
4. Was manufacturing overhead under- oroverapplied for the first quarter of the year? By how much? (Omitthe "$" sign in your response.)