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Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31

Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 12E: Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was...
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Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31
Transcribed Image Text:Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January: 231,100 76,600 128,688 $389,300 Cost of subcontracted work (comparable to direct materials) Direct staff costs (comparable to direct labor) Studio overhead (comparable to manufacturing overhead cost applied) Cost of work completed (comparable to cost of goods manufactured) There were no beginning inventories in January. At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,610 in direct staff costs. Required: 1. Compute the predetermined overhead rate that was used during January. Predetermined overhead rate % 2. Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.) Job Cost Sheet Krimmer Corporation Headquarters Project Costs of subcontracted work Direct staff costs Studio overhead Total cost to January 31
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