FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Topic Video
Question
Lucy Sportswear manufactures a line of specialty T-shirts using a
If Job ICU2 resulted in 4,000 good shirts, what was the cost of goods sold per shirt? (Round answer to 1 decimal place, e.g. 3.5.)
Cost per shirt | $ __________________ |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Nagle Incorporated uses a job - order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In October the company completed job 043G that consisted of 24,000 units of one of the company's standard products. No other jobs were in process or sold during the month. The job cost sheet for job 043G shows that the total cost for the job was $928, 800. During the month, 21,000 completed units from job 043G were sold. The cost of goods sold that would appear on the income statement for October is closest to:arrow_forwardDillon 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 $4,354,800 in manufacturing overhead cost at an activity level of 573,000 machine-hours. The company spent the entire month of January working on a large order for 12,600 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, $310,000. b. Raw materials used in production, $267.000 (80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory, $177,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $63,600. e. Other manufacturing overhead costs incurred on account, $85,400 1. Manufacturing overhead cost was applied…arrow_forwardChico's Clockworks uses job order costing for its custom clock-making business. Job GF1260 is a custom-made grandfather clock. Chico's job cost sheet for Job GF1260 shows a total cost of $4,265, including direct labor of 50 hours at $20 per hour. Overhead is applied at 100% of direct labor cost. What is the direct materials cost for Job GF1260?arrow_forward
- Eastern Furniture Inc. manufactures several different designs of outdoor furniture. Production costs are accounted for using a job order cost system. During the current period, 100 metal tables were manufactured on Job 275. Costs charged to the job before inspection are: Materials $3,300 Labor (150 hours x $10 per hour) 1,500 Factory overhead ($12 per labor hour) 1,800 Total cost charged to Job 275 $6,600 Inspection revealed that an umbrella ring had not been attached to the tables. To correct the oversight, a small part was welded to the table leg brace and the brace was repainted. The small part cost $.50 for each table, and the primer and paint cost $ 1.00 for each table. Each table required l/4 hour of labor. Required: Prepare general journal entries to record the rework and the transfer of the completed tables to Finished Goods Inventory.arrow_forwardJasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7,700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. What is the total manufacturing cost of Job 651?arrow_forwardPlease help mearrow_forward
- Echenko Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $380,000 and credited for $335,500. The ending balance in the Finished Goods inventory account was $62,300. At the end of the year, manufacturing overhead was overapplied by $2,900. The balance in the Finished Goods inventory account at the beginning of the year was?arrow_forwardSwiss Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning BalanceEnding Balance Raw materials$ 44,800 $ 70,400 Work in process $ 86,400 $ 28,800 Finished Goods $ 198,400 $ 214,400 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 105,600 machine-hours and incur $739,200 in fixed manufacturing overhead cost and $7.20 variable manufacturing overhead per direct machine hour. The following transactions were recorded for the year: 1. Raw materials were purchased on account, $1,008,000. 2. Raw materials were requisitioned for use in production, $982,400 ($899,200 direct and $83,200 indirect). 3. The following employee costs were incurred: direct labor, $1,206,400; indirect labor, $307,200; and administrative salaries, $422,400.…arrow_forwardOak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 Source documents revealed the following during March: Materials Requisitions Forms $3,000 2,500 5,000 1,000 $ 11,500 Job 33 Job 34 Job 35 Indirect Balance on 3/1 $ 5,400 3,900 $ 9,300 Labor Time Tickets $ 5,500 3,100 2,600 2,000 $ 13,200 The company applies overhead to products at a rate of 65 percent of direct labor cost. Status of Job at Month-End Completed and sold Completed, but not sold In process Required: 1. Compute the cost of Jobs 33, 34, and 35 at the end of the month. 2. Calculate the balance in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts at month-end. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Job 33 Job 34 Job 35 Compute the cost of Jobs 33, 34, and 35 at…arrow_forward
- Speedy Auto Repairs uses job-order costing. Its direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct labor-hour Required: 1. Compute the predetermined overhead rate. 2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information pertains to his job: Direct materials Direct labor cost Direct labor-hours used 36,000 $ 540,000 $ 1.00 $ 685 $ 153 7 Compute Mr. Wilkes' total job cost. 3. If Speedy…arrow_forwardHigh Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company’s job-order costing system uses departmental predetermined overhead rates to apply manufacturing overhead costs to jobs. The predetermined overhead rate in the Molding Department is based on machine hours, and the rate in the Painting Department is based on direct labor hours. At the beginning of the year, the company provided the following estimates: Department Molding Painting Direct labor-hours 36,500 56,600 Machine-hours 82,000 37,000 Fixed manufacturing overhead cost $ 213,200 $ 515,060 Variable manufacturing overhead per machine-hour $ 2.80 0 Variable manufacturing overhead per direct labor hour 0 $ 4.80 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours 84 128 Machine-hours 360 67 Direct materials $ 948 $ 1,160…arrow_forwardBaggins Bed and Second Breakfast utilizes a job order costing system. They only had one job for the period. The material requisition form for the period has been provided below: Direct materials purchased $18,000 Direct materials used $17,600 In addition to the direct materials, the following amounts were incurred during production: $9,200 in direct labor and $6,500 in applied manufacturing overhead. They began the period with $4,300 in beginning balance for this job. What is the ending balance for this job?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
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