Munoz Manufacturing Company was started on January 1, Year 1, when it acquired $2,900 cash from the issue of common stock. During the first year of operation, $1,700 of direct raw materials was purchased with cash, and $1,050 of the materials was used to make products. Direct labor costs of $1,900 were paid in cash. Mun oz applied $730 of overhead cost to the Work in Process account. Cash payments of $730 were were made for actual overhead costs. The company completed products that cost $2,500 and sold goods that had cost $1,920 for $2,900 cash. Selling and administrative expenses of $570 were paid in cash.

Munoz Manufacturing Company was started on January 1, Year 1, when it acquired $2,900 cash from the issue of common stock. During the first year of operation, $1,700 of direct raw materials was purchased with cash, and $1,050 of the materials was used to make products. Direct labor costs of $1,900 were paid in cash. Mun oz applied $730 of overhead cost to the Work in Process account. Cash payments of $730 were were made for actual overhead costs. The company completed products that cost $2,500 and sold goods that had cost $1,920 for $2,900 cash. Selling and administrative expenses of $570 were paid in cash.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
On December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: During December the following transactions occurred: a. Purchased materials costing 50,000 on account. b. Placed direct materials costing 49,000 into production. c. Incurred production wages totaling 50,500. d. Incurred overhead costs for December: e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses the weighted average cost method. The ending inventory of work in process consisted of 1,000 units that were completed as to materials and 25% complete as to labor and overhead. Required: Prepare the journal entries to record the above December transactions.
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
Prepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.
Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots From the Casting Department are rolled into steel sheet. The Rolling Department received 4,000 tons from the Casting Department in October. During October, the Rolling Department completed 3,900 tons, including 200 tons of work in process on October 1. The ending work in process inventory on October 31 was 300 tons. How many tons were started and completed during October?
Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
Newcomb Manufacturing Company was started on January 1, Year 1, when it acquired $3,900 cash from the issue of common stock. During the first year of operation, $2,700 of direct raw materials was purchased with cash, and $1,550 of the materials was used to make products. Direct labor costs of $2,900 were paid in cash. Newcomb applied $830 of overhead cost to the Work in Process account. Cash payments of $830 were were made for actual overhead costs. The company completed products that cost $3,500 and sold goods that had cost $2,720 for $3,900 cash. Selling and administrative expenses of $670 were paid in cash. Required a. Prepare T - accounts and record the events affecting Newcomb Manufacturing. Include closing entries. b1. Prepare a schedule of cost of goods manufactured and sold. b2. Prepare an income statement. b3. Prepare a balance sheet.
Rooney Construction Company began operations on January 1, Year 1, when it acquired $10,000 cash from the issuance of common stock. During the year, Rooney purchased $2,700 of direct raw materials and used $2,500 of the direct materials. There were 106 hours of direct labor worked at an average rate of $8 per hour paid in cash. The predetermined overhead rate was $4.00 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the following allocations of costs to each building. Direct Materials Direct Labor Hours Job 1 $ 600 28 Job 2 1,100 46 Job 3 800 32 The company paid $77 cash for indirect labor costs. Actual overhead cost paid in cash other than indirect labor was $341. Rooney completed Jobs 1 and 2 and sold Job 1 for $1,586 cash. The company incurred $150 of selling and administrative expenses that were paid in cash. Over- or underapplied overhead is closed to Cost of Goods Sold.…
XYZ Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $85,000. 2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials. 3. Factory labor costs incurred were $100,000 of which time tickets indicated that $84,000 was direct labor and $16,000 was indirect labor. 5. Other overhead costs incurred on account were $112,000. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. 8. Finished goods costing $100,000 to manufacture were sold on account for $130,000 Required: Note, 1) what was the overapplied or underapplied overhead for the year. 2) Calculate the costs on the job cost sheets for finished ending inventory.
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