Chesapeake Sailmakers uses job ordercosting. Manufacturing overhead is charged to individualjobs through the use of a predetermined overhead ratebased on direct labor costs. The following informationappears in the company's Work in Process Inventoryaccount for the month of June:
Debits to account: Balance, June1 $ 7,200 Directmaterials 13,000 Directlabor 9,200 Manufacturingoverhead (applied to jobs as 150% of direct labor cost) 14,000
Totaldebits to account $ 43,400 Credits to account: Transferredto Finished Goods Inventory account 33,200
Balance, June 30 $ 10,200
a. Assuming that the direct laborcharged to the jobs still in process at June 30 amountsto $2,100, compute the amount of manufacturing overhead andthe amount of direct materials that have been charged tothese jobs as of June 30. (Omit the "$" sign in yourresponse.)
Manufacturing overhead applied to jobs $ Direct materials charged to jobs $
b. Prepare general journal entries to summarize:(Omit the "$" signin your response.) 1. The manufacturing costs (directmaterials, direct labor, and overhead) charged to production duringJune.
2. The transfer of production completedduring June to the Finished Goods Inventory account.
3. The cash sale of 90percent of the merchandise completed during June ata total sales price of $46,000. Show the related cost ofgoods sold in a separate journal entry.
General Journal Debit Credit 1. choose one: land, manufacturingoverhead, work in progress inventory, direct labor, finish goodinventory, sales, cash, materials inventory, accounts payable,materials inventory, rental equipment, wages expense, costs ofgoods sold,
choose one: same choicesas above.
choose one: same choices asabove.
choose one: samechoices as above.
2. choose one: same choices asabove. choose one: same choicesas above.
3. choose one: same choices asabove. choose one:same choices as above.
choose one: same choices asabove. chooseone: same choices as above.
Chesapeake Sailmakers uses job ordercosting. Manufacturing overhead is charged to individualjobs through the use of a predetermined overhead ratebased on direct labor costs. The following informationappears in the company's Work in Process Inventoryaccount for the month of June:
| Debits to account: | ||
| Balance, June1 | $ | 7,200 |
| Directmaterials | 13,000 | |
| Directlabor | 9,200 | |
| Manufacturingoverhead (applied to jobs as 150% of direct labor cost) | 14,000 | |
| Totaldebits to account | $ | 43,400 |
| Credits to account: | ||
| Transferredto Finished Goods Inventory account | 33,200 | |
| Balance, June 30 | $ | 10,200 |
| | | |
| a. | Assuming that the direct laborcharged to the jobs still in process at June 30 amountsto $2,100, compute the amount of manufacturing overhead andthe amount of direct materials that have been charged tothese jobs as of June 30. (Omit the "$" sign in yourresponse.) |
| Manufacturing overhead applied to jobs | $ |
| Direct materials charged to jobs | $ |
| b. | Prepare general journal entries to summarize:(Omit the "$" signin your response.) | |
| 1. | The manufacturing costs (directmaterials, direct labor, and overhead) charged to production duringJune. | |
| 2. | The transfer of production completedduring June to the Finished Goods Inventory account. | |
| 3. | The cash sale of 90percent of the merchandise completed during June ata total sales price of $46,000. Show the related cost ofgoods sold in a separate journal entry. | |
| General Journal | Debit | Credit | |
| 1. | choose one: land, manufacturingoverhead, work in progress inventory, direct labor, finish goodinventory, sales, cash, materials inventory, accounts payable,materials inventory, rental equipment, wages expense, costs ofgoods sold, | ||
| choose one: same choicesas above. | |||
| choose one: same choices asabove. | |||
| choose one: samechoices as above. | |||
| 2. | choose one: same choices asabove. | ||
| choose one: same choicesas above. | |||
| | |||
| 3. | choose one: same choices asabove. | ||
| choose one:same choices as above. | |||
| choose one: same choices asabove. | |||
| chooseone: same choices as above. |
Related questions
I need to Prepare entries for a job order, cost system, and cost of goods manufactured schedule, but my numbers aren't matching up. Please answer both parts of the question.
Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Data P3-3: | ||||||
| FROYA FABRIKKER A/S | ||||||
| Beginning estimates: | The company uses a job-order costing | |||||
| Manufacturing overhead cost | $360,000 | system and applies overhead cost to | ||||
| Direct labor hours | 900 | jobs on the basis of direct labor-hours. | ||||
| Transactions: | ||||||
| Raw materials purchased | $200,000 | |||||
| Raw materials requisitioned | $185,000 | |||||
| Utility bills | $70,000 | |||||
| For factoryoperations | 90% | |||||
| For sales andadministrative activities | 10% | |||||
| Costs for salaries and wages: | ||||||
| Direct labor (975 hours) | $230,000 | |||||
| Indirect labor | $90,000 | |||||
| Selling and admin salaries | $110,000 | |||||
| Maintenance costs | $54,000 | |||||
| Advertising costs | $136,000 | |||||
| Depreciation | $95,000 | |||||
| For factoryequipment | 80% | |||||
| For sales andadministrative equipment | 20% | |||||
| Rental costs | $120,000 | |||||
| Space for factoryoperations | 85% | |||||
| Space for sales &administration | 15% | |||||
| Manufacturing overhead cost applied | ||||||
| to jobs | ? | |||||
| Cost of goods manufactured | $770,000 | |||||
| Sales on account | $1,200,000 | |||||
| Cost of goods sold | $800,000 | According to job cost sheets. | ||||
| Inventory balances: | ||||||
| Raw materials | $30,000 | |||||
| Work in process | $21,000 | |||||
| Finished goods | $60,000 | |||||
| Job 412: | ||||||
| Direct Materials | $8,000 | |||||
| Direct labor hours | 39 | |||||
| Total direct labor cost | $9,200 | |||||
| Units | 4 | |||||
| % billed above cost | 60% | |||||
| Required: | ||||||
| 1. Prepare journal entries torecord the preceding data (transactions). | ||||||
| 2. Post your entries toT-accounts. Determine the ending balances in the | ||||||
| inventoryaccounts and in the Manufacturing Overhead account. | ||||||
| 3. Prepare a schedule of costof goods manufactured. | ||||||
| 4. Prepare a journal entry toclose any balance in the Manufacturing Overhead | ||||||
| account to cost ofgoods sold. | ||||||
| 5. Prepare an income statementfor the year. | ||||||
| 6. Job 412 was one of the manyjobs started and completed during the year. | ||||||
| The jobrequired $8,000 indirect materials and 39 hours of direct labortime at | ||||||
| a totalcost of $9,200. The job contained only four units. If the companybills at | ||||||
| a price 60%above the unit product cost on the job cost sheet, what price perunit | ||||||
| would havebeen charged to the customer? | ||||||
Part 1:
Granite Company uses a job order costing system. The companyapplied manufacturing overhead to jobs using a predeterminedoverhead rate based on direct labor hours. Last year, manufacturingoverhead and direct labor hours were estimated at $80,000 and16,000 hours respectively, for the year. In June, Job #315 wascompleted. Material cost on the job totaled $1,500 and labor costtotaled $2,400 at $6 per hour. At the end of the year, it wasdetermined that the company worked 15,000 direct labor hours forthe year, and incurred $78,000 in actual manufacturing overheadcosts.
Required: (Please show work)
1. Determine the predetermined overhead rate for the year.
2. Determine the amount of overhead charged to jobs during theyear
3. Determine the amount of underapplied or overapplied overheadfor the year.
4. Assuming that 100 units were completed, determine the unitcost that would appear on the job cost sheet for Job #315.
Part II:
Alake Company is a manufacturing firm that uses job ordercosting. At the beginning of the year, the companyâs inventorybalances were as follows:
RawMaterials $19,000
Work inProcess $82,000
FinishedGoods $32,000
The company applied overhead to jobs using a predeterminedoverhead rate based on machine hours. At the beginning of the year,the company estimated that it would work 36,000 machine hours andincur $216,000 in manufacturing overhead cost. The followingtransactions were recorded for the year:
Required:
Prepare the appropriate journal entry for each of the itemsabove. You can assume that all transactions with employees,customers, and suppliers were conducted in cash.
a. Raw Materials were purchased $443,000.
Account Title | Debit | Credit |
b. Raw materials were requisitioned for use in production,$450,000 ($435,000 direct and $15,000 indirect).
Account Title | Debit | Credit |
c. The following employee costs were incurred:
Directlabor $229,000
Indirectlabor $ 54,000
Administrativesalaries $117,000
Account Title | Debit | Credit |
d. Selling costs, $119,000
Account Title | Debit | Credit |
e. Factory utility costs, $21,000
Account Title | Debit | Credit |
f. Depreciation for the year was $121,000 of which $114,000 isrelated to factory operations and $7,000 is related to selling,general and administrative activities.
Account Title | Debit | Credit |
g. Manufacturing overhead was applied to jobs. The actual levelof activity for the year was 38,000 machine hours.
Account Title | Debit | Credit |
h. The cost of goods manufactured for the year was $910,000
Account Title | Debit | Credit |
i. Sales for the year totaled $1,173,000 and the costs on thejob cost sheets of the goods that were sold totaled $895,000.
Account Title | Debit | Credit |
j. The balance in the Manufacturing Overhead account was closedto Cost of Goods Sold.
Account Title | Debit | Credit |
