ACC 336 Chapter Notes - Chapter 5.3: Root Mean Square

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viridianjellyfish544

29 Jun 2020

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Upon completion, the unit cost = total manufacturing costs divided by the number of units produced. Job-order cost sheet: identi es each job and accumulates its manufacturing costs. Created upon receipt of a production order. Contains a job order number that identi es the new job. What you"re doing for them, how many items, job number, order date, completion date, information about both companies, direct materials, direct labor, overhead rate, hours, etc. Source document used to assign direct materials to cost to a job. Includes description, quantity, unit cost of direct material issued, and job number. Provides essential information for assigning dm costs to jobs. Helps maintain proper control over a rms inventory of dm. Source docs used to assign direct labor costs to each job. Jobs are assigned oh costs with a predetermined oh rate. Dl hrs are used as the measure to calculate oh.

Related Questions

Logan Company uses a job order costing system. A predeterminedoverhead rate of $7 per machine hour in Department A and 220percent per direct labor dollar in Department B has beenestablished based upon the following information at the beginningof the year: Department A Department B

Estimated overhead (A) $40,600 (B) $88,000

Estimated machine hours (A) 5,800 (B) 12,500

Estimated direct labor dollars (A) $40,000 (B) $40,000

Estimated direct labor hours (A) 5,000 (B) 3,125

Job 19 for 100 units is started in Department A and completed inDepartment B. Determine the total cost of Job 19 and complete thejob cost card based on the following information:

Department A Department B

Direct materials (A) $800 (B) $950

Direct labor dollars (A) $490 (B) $180

Direct labor hours (A) 30 (B) 12

Machine hours (A) 15 (B) 30

Job Order JOB ORDER COST CARD

Customer: Batch: Custom:

Specifications:

Date of Order:

Date of Completion:

Costs Charged to Job Previous Months Current Month CostSummary

Direct materials Department A Department B

Total direct materials Direct Labor Department A DepartmentB

Total direct labor Overhead Department A Department B

Total overhead

Total cost Units completed Product unit cost

chocolatereindeer731

Lott Company uses a job order cost system and applies overheadto production on the basis of direct labor costs. On January 1,2017, Job No. 50 was the only job in process. The costs incurredprior to January 1 on this job were as follows: direct materials $22,400 , direct labor $ 13,440 , and manufacturing overhead $17,920 . As of January 1, Job No. 49 had been completed at a costof $ 100,800 and was part of finished goods inventory. There was a$ 16,800 balance in the Raw Materials Inventory account. During themonth of January, Lott Company began production on Jobs 51 and 52,and completed Jobs 50 and 51. Jobs 49 and 50 were also sold onaccount during the month for $ 136,640 and $ 176,960 ,respectively. The following additional events occurred during themonth. 1. Purchased additional raw materials of $ 100,800 onaccount. 2. Incurred factory labor costs of $ 78,400 . Of thisamount $ 17,920 related to employer payroll taxes. 3. Incurredmanufacturing overhead costs as follows: indirect materials $19,040 ; indirect labor $ 22,400 ; depreciation expense onequipment $ 13,440 ; and various other manufacturing overhead costson account $ 17,920 . 4. Assigned direct materials and direct laborto jobs as follows. Job No. Direct Materials Direct Labor 50 $11,200 $ 5,600 51 43,680 28,000 52 33,600 22,400 Calculate thepredetermined overhead rate for 2017, assuming Lott Companyestimates total manufacturing overhead costs of $940,800, directlabor costs of $784,000, and direct labor hours of 22,400 for theyear. (Round answer to the nearest whole percent, e.g. 25%.)Predetermined overhead rate % Open job cost sheets for Jobs 50, 51,and 52. Enter the January 1 balances on the job cost sheet for JobNo. 50. Job No. 50 Date Direct Materials Direct Labor ManufacturingOverhead Beg. $ $ $ Jan. $ $ $ Cost of completed job Directmaterials $ Direct labor Manufacturing overhead Total cost $ JobNo. 51 Date Direct Materials Direct Labor Manufacturing OverheadJan. $ $ $ $ $ $ Cost of completed job Direct materials $ Directlabor Manufacturing overhead Total cost $ Job No. 52 Date DirectMaterials Direct Labor Manufacturing Overhead Jan. $ $ $ Preparethe journal entries to record the purchase of raw materials, thefactory labor costs incurred, and the manufacturing overhead costsincurred during the month of January. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Prepare the journal entries to record the assignment of directmaterials, direct labor, and manufacturing overhead costs toproduction. In assigning manufacturing overhead costs, use theoverhead rate calculated in (a). (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.) No. Account Titles and Explanation Debit Credit (1) (2)(3) Total the job cost sheets for any job(s) completed during themonth. Prepare the journal entry to record the completion of anyjob(s) during the month. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.) AccountTitles and Explanation Debit Credit Prepare the journal entries torecord the sale of any job(s) during the month. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually.) No. Account Titles and Explanation Debit Credit(1) (To record sale of jobs) (2) (To record cost of jobs) What isthe balance in the Finished Goods Inventory account at the end ofthe month? What does this balance consist of? Finished GoodsInventory $ What is the amount of over- or underapplied overhead?Manufacturing Overhead $ Question Attempts: 0 of 15 used Save forlater Submit Answer

lemonbee185

pleas help me ASAP

Remnant Carpet Company sells and installs commercial carpeting for office buildings. Remnant Carpet Company uses a A type of cost accounting system that provides for a separate record of the cost of each particular quantity of product that passes through the factory.job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On October 1, Remnant Carpet Company gave Jackson Consulting an estimate of $2,436 to carpet the consulting firmâs newly leased office. The estimate was based on the following data:

Estimated direct materials:
30 meters at $30 per meter	$ 900
Estimated direct labor:
16 hours at $30 per hour	480
Estimated factory overhead (75% of direct labor cost)	360
Total estimated costs	$1,740
Markup (40% of production costs)	696
Total estimate	$2,436

On October 3, Jackson Consulting signed a purchase contract, and the delivery and installation were completed on October 10.

The related The form or electronic transmission used by a manufacturing department to authorize materials issuances from the storeroom.materials requisitions and The form on which the amount of time spent by each employee and the labor cost incurred for each individual job, or for factory overhead, are recorded.time tickets are summarized as follows:

Materials Requisition No.	Description	Amount
112	15 meters at $30	$450
114	19 meters at $30	570

Time Ticket No.	Description	Amount
H10	8 hours at $30	$240
H11	12 hours at $30	360

Required:

Enter amounts as positive numbers.

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.

2. Record the costs incurred, and complete the job order cost sheet.

JOB ORDER COST SHEET

Customer	Jackson Consulting	Date	October 1
		Date wanted	October 10
		Date completed	October 10
		Job. No.
ESTIMATE

Direct Materials

Direct Labor

Summary

Amount

ACTUAL

Direct Labor

Summary

Mat. Req. No.

Description

Amount

Time Ticket No.

Description

Amount

Item

Amount

What is the best explanation for the variances between actual costs and estimated costs. (For this purpose, assume that the additional meters of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work.)

a.)The direct materials cost exceeded the estimate by $120 because 4 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. The factory overhead cost exceeded the estimate because an additional $90 of factory overhead was allocated because of the increase in direct labor.

b.)Management didn't provide enough direction to complete tasks on budget.

c.)The direct materials cost exceeded the estimate by $75 because 3 meters of materials were spoiled.

d.) The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee.

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ACC 336 Chapter Notes - Chapter 5.3: Root Mean Square

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