Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,600,direct labor of $3,000, and applied overhead of $2,550. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost.During July, Job 120 is sold (on credit) for $31,500, Job 121 is started and completed, and Job 122 is started and still in process at theend of July. Custom Cabinetry incurs the following costs during July.Job 120$ 1,8003,200Job 121$ 7,5005,000Job 122$ 2,8003,2001. Prepare journal entries for the following July transactions and events a through e.a. Direct materials used.b. Direct labor used.c. Overhead applied.d. Sale of Job 120.e. Cost of goods sold for Job 120. Hint. Job 120 has costs from June and July.Direct materials usedDirect labor used2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobsin Finished Goods Inventory at June 30.)

The objective of the question is to prepare journal entries for the transactions and events that…

Answered: Custom Cabinetry has one job in process…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,339,600 in manufacturing overhead cost at an activity level of 571,000 machine-hours. The company spent the entire month of January working on a large order for 12,400 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw materials purchased on account, $321,00o. b. Raw materials used in production, $250,000 (80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory, $174,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $63,800. e. Other manufacturing overhead costs incurred on account, $85,800. f. Manufacturing overhead cost was applied…
At the end of May, Lockmiller Company had completed Jobs 275 and 310. Job 275 is for 5,000 units, and Job 310 is for 2,000 units. The following data relate to these two jobs: On May 7, Lockmiller Company purchased on account 12,000 units of materials at $6 per unit. During May, raw materials were requisitioned for production as follows: 8,400 units for Job 275 at $6 per unit and 2,150 units for Job 310 at $4 per unit. During May, Lockmiller Company accumulated 1,900 hours of direct labor costs on Job 275 and 2,600 hours on Job 310. The total direct labor was incurred at a rate of $34 per direct labor hour for Job 275 and $26 per direct labor hour for Job 310. Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct labor hours are estimated to be 102,000. a. Determine the balance on the job cost sheets for Jobs 275 and 310 at the end of May. Job 275 $fill in the blank 1 Job 310 $fill in the blank 2 b. Determine the cost per unit…
Ahlia Industries allocates manufacturing overhead at a predetermined rate of 180% of direct labor cost. Any overallocated or underallocated overhead is closed to the cost of goods sold at the end of the month. Below is information on job 205 that was in process at the end of the month of October Direct materials $4,000 Direct labor $3,000 Allocated manufacturing overhead $4,800 Jobs 206, 207, and 208 were started in November. Direct materials that were used in November were $26,000 and direct labor costs were $21,000. For the month of November, actual manufacturing overhead was $32,000. The only job still in process on the last day of November was job 104 with the following costs: $3,000 for direct materials and $1,500 for direct labor. Instructions: Calculate the cost of goods manufacturered for November.
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Ahlia Industries allocates manufacturing overhead at a predetermined rate of 180% of direct labor cost. Any overallocated or underallocated overhead is closed to the cost of goods sold at the end of the month. Below is information on job 205 that was in process at the end of the month of October Direct materials $4,000 Direct labor $3,000 Allocated manufacturing overhead $4,800 Jobs 206, 207, and 208 were started in November. Direct materials that were used in November were $26,000 and direct labor costs were $21,000. For the month of November, actual manufacturing overhead was $32,0ro. The only job still in process on the last day of November was job 104 with the following costs: $3,000 for direct materials and $1,500 for direct labor. Instructions: Calculate the cost of goods manufacturered for November.
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Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs during April. Jobs A and B were in process at the beginning of April. Job A was completed and delivered to the customer. Job B was completed during April, but not sold. Job C was started during April, but not completed. The job cost sheets revealed the following costs for April: Cost of Jobs in Process, 4/1/2018 Direct Materials Used Direct Labor Applied Manufacturing Overhead Job A a. Work in Process b. Finished Goods c. Cost of Goods Sold $11,100 1,100 8,200 ? Job B $1,100 6,200 6,200 ? Job C $ - 6,300 2,100 ? Required: If no other jobs were started, completed, or sold, determine the balance in each of the following accounts at the end of April:
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