ACCT208 Lecture Notes - Lecture 4: Deutsche Luft Hansa, European Cooperation In Science And Technology, Financial Statement

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harlequinraven529

8 Mar 2018

School

University of Delaware

Department

Accounting

Course

ACCT208

Professor

Deb Dragone

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Document Summary

Chapters 2 & 3 -- job order costing: what do we already know about job costing, use jobs to collect costs and do the work and bill the customer. Voh + foh) ***required by absorption costing for external f/s. Review product costs and what is normal costing: direct material. Directly traced -- actual cost: direct labor. Directly traced -- actual cost: applied overhead. Estimated amount of oh thought to be used on a job. Applied to job using predetermined oh rate ( pohr ) Actual oh is never assigned in a normal system. Used to assign oh cost to products/services based on estimated data established before the year begins. Because we can"t wait until year end for actual oh data. Use because it gives us consistent data to help in estimating future jobs and work. The formula: estimated annual oh cost / estimated annual cd units. Common bases: dlh (dlhours), dlc (dlcost), mh (machine hours)

Related Questions

Sweeten Company had no jobs in progress at the beggining ofMarch and no beginning inventories. It started only wo jobs duringMarch - Job P and Job Q. Job P was completed and sold by the end ofthe March and Job Q was incomplete at the end of the March. Thecompany uses a plantwide predetermined overhead rate based ondirect labor hours. The following additional Information isavailible for the company as a whole and as for Jobs P and Q (alldata and questions relate to the month of march)

Estimated total fixed manufacturing overhead $10,000

Estimated variable manufacturing overhead per direct labor hour$1.00

Estimated total direct labor hours to be worked 2,000

Total actual manufacturing overhead costs incurred $12,500

Direct Materials -

Job P - $13,000. Job Q- $8,000

Direct Labor Cost-

Job P- $21,000. Job Q- $7,500

Actual direct labor hours worked

Job P- 1,400. Job Q- 500

1- If job P includes 20 units, what is its unit productcost?

Unit product cost $______________________________

2- What is the total amount of manufacturing cost assigned toJob Qas of the end of March (including applied overhead)?

Total maufacturing cost $_________________________________

maroonmouse70

Basic Job Costing Project

Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.

At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.

The following information pertains to December of the current year:

	Job 10	Job 11	Job 12	Total
Work-in-process, Dec. 1	$16,000	$26,000	$38,000	$80,000

The following transactions took place during the month of December:

1. Purchased raw materials for $25,000 on credit;

2. Requisitioned and used direct materials for the three jobs:

a. $4,000 for Job 10

b. $4,800 for Job 11

c. $7,200 for Job 12

3. Used indirect materials worth $20,000

4. . Incurred direct labor costs as follows:

a. $ 2,400 for Job 10

b. $3,600 for Job 11

c. $4,000 for Job 12

5. Incurred $30,000 worth of indirect manufacturing labor costs.

6. Depreciation on manufacturing plant and equipment $21,000.

7. During the month of December, the company used the following direct labor hours and machine hours for the three jobs:

	Job 10	Job 11	Job 12	Total
Machine hours	400	700	900	2,000
Labor hours	120	180	200	500

Required:

1. Compute the predetermined overhead application rate.

2. Prepare the journal entries for the transactions that took place in December and apply manufacturing overhead to the jobs using the actual machine hours.

3. Determine the total cost associated with each job.

4. If jobs 10 and 12 were completed, prepared the journal entry to move jobs 10 and 12 to finished goods.

5. Delivered job 10 to customers that paid $40,000 cash; prepare the journal entries to sell job 10 and to recognize the associated cost of goods sold.

6. What is the cost assigned to ending work in process (control account)?

7. What is the cost assigned to ending finished goods (control account)?

8. How much was manufacturing overhead over/underapplied?

indigolion723

Take an example from our childhood entrepreneurial endeavors(running a lemonade stand or neighborhood lawn mowing services,making crafts to sell at a local crafts fair, babysitting, etc.).Imagine these products and services as businesses, in which you arethe manager with several teenagers as your employees.

Define the âjobsâ in job costing. Explain how you would measuredirect materials cost, direct labor cost, and compute predeterminedoverhead rates. What are your actual manufacturing overhead costs,and why arenât they traced to jobs, just as direct materials anddirect labor are traced to jobs? Give reasons why overhead might beunder-applied or over-applied in a given year. What factors shouldbe considered in selecting a base to be used in computing thepredetermined overhead rate? Why?

beigeeagle976

ACCT208 Lecture Notes - Lecture 4: Deutsche Luft Hansa, European Cooperation In Science And Technology, Financial Statement

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