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

See similar textbooks

Similar questions

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,900 of direct materials and used $4,400 of direct labor. The job was not finished by the end of September, but needed an additional $3,400 of direct materials and additional direct labor of $6,900 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation used $3,000 of direct materials and used $4,500 of direct labor. The job was not finished in September. An additional $3,500 of direct materials and $7,000 of direct labor were needed to finish the job in October. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?
Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,760. Materials totaling $40,880 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour. Actual overhead of $8,850 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. Completed jobs costing $59,000 were transferred to Finished Goods. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were: Materials Inventory $1,300 Work-in-Process Inventory 3,400 Finished Goods Inventory 2,640 Required: Question Content Area 1. Prepare the journal entries for the preceding events. a. b. c.…
In its job costing system, Mason Co. applies MOH to jobs using a budgeted MOH rate based on DL dollars. The rate, which is 200% of DL dollars, was calculated last December and will be used throughout the current year. On August 1, Mason had one job, #150, in process, with DM costs of $2,000 and DL costs of $3,000. During August, DM and DL costs were added to Job #150, as well as new Jobs #151 and #152, as follows. Job #150 Job #151 Job #152 4,000 $ 1,000 5,000 $ 2,500 Actual MOH cost for the month of August was $20,000. During the month, Mason completed Direct materials O $ Direct labor $ 1,500 $ Jobs #150 and #151.
K company production was working on Job 1 and Job 2 during the month. Of the $785 in direct materials, $375 in materials was requested for Job 1. Direct labor cost, including payroll taxes, are $22 per hour, and employees worked 17 hours on Job 1 and 28 hours on Job 2. Overhead is applied at the rate of $18 per direct labor hours. Prepare job order cost sheets for each job. Job 1 Hours Total Cost Direct materials $fill in the blank 1 Direct labor fill in the blank 2 fill in the blank 3 Manufacturing overhead fill in the blank 4 fill in the blank 5 Total cost $fill in the blank 6 Job 2 Hours Total Cost Direct materials $fill in the blank 7 Direct labor fill in the blank 8 fill in the blank 9 Manufacturing overhead fill in the blank 10 fill in the blank 11 Total cost $fill in the blank 12
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,700, direct labor of $3,600, and applied overhead of $2,880. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on credit) for $24,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. Job 120 Job 121 Job 122 Direct materials used $ 1,000 $ 6,100 $ 2,900 Direct labor used 3,800 4,000 3,900 1. 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.2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory…
Shoe Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses Job Order Costing system. For the current year 2021, the company estimated that it would work 400,000 machine-hours and will incur P2,800,000 in manufacturing overhead cost. The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows: Requirement: CREATE A JOURNAL ENTRY if The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)
Entrepreneurial Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,900 of indirect materials and $13,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Direct materials $10,900 Direct labor 8,900 Factory overhead 5,785 Total $25,585 Job 302 Direct materials $18,300 Direct labor 17,700 Factory overhead 11,505 Total $47,505 Job 303 Direct materials $26,000 Direct labor 16,000 Factory overhead — Job 304 Direct materials $13,700 Direct labor 12,300 Factory…
Entrepreneurial Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,600 of indirect materials and $15,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $14,300 Direct materials $26,900 Direct labor 10,000 Direct labor 24,000 Factory overhead 6,500 Factory overhead 15,600 Total $30,800 Total $66,500 Job 303 Job 304 Direct materials $17,100 Direct materials $35,200 Direct labor 36,000 Direct labor 32,000 Factory overhead — Factory…
Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,400 of indirect materials and $13,700 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $10,100 Direct materials $19,000 Direct labor 8,500 Direct labor 16,200 Factory overhead 5,950 Factory overhead 11,340 Total $24,550 Total $46,540 Job 303 Job 304 Direct materials $23,700 Direct materials $12,700 Direct labor 16,300 Direct labor 11,800 Factory overhead — Factory overhead — Required:…
Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,500 of indirect materials and $11,800 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $10,500 Direct materials $21,600 Direct labor 7,200 Direct labor 15,600 Factory overhead 4,752 Factory overhead 10,296 Total $22,452 Total $47,496 Job 303 Job 304 Direct materials $23,800 Direct materials $15,900 Direct labor 19,100 Direct labor 14,000 Factory overhead — Factory overhead — Required:…
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,100, direct labor of $3,700, and applied overhead of $2,960. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on credit) for $28,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. Job 120 Job 121 Direct materials used Direct labor used $ 1,500 3,500 $ 6,600 4,300 Job 122 $2,500 4,000 1. 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. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory at June…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS