FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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YOUTH.inc. provides custom-made umbrellas for its client. The company accumulates its production cost using a
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- Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $23,200, direct labor $13,920, and manufacturing overhead $18,560. As of January 1, Job 49 had been completed at a cost of $104,400 and was part of finished goods inventory. There was a $17,400 balance in the Raw Materials Inventory account. During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $141,520 and $183,280, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Job No. 50 Purchased additional raw materials of $104,400 on account. Incurred factory labor costs of $81,200. Of this amount $18,560 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect…arrow_forwardYou are the Accountant for a Custom Furniture company. The company uses a job order costing systemand applies overhead on the basis of direct labor hours. The January 1, 2024 raw materials inventorybalance was $19,000. Actual overhead for January was $106,500 and Direct Labor Hours for Januarytotaled 2,975. The January 31, 2024 raw materials inventory balance was $27,000. During January2024, Jobs No. 21 & 22 were completed. A single Job, No. 22, was sold for $110,000 during January2024. January 31, 2024 costing information for jobs 20, 21, 22 and 23 are below.Job No. Direct Materials Direct Labor Direct Labor Hours20 7,500$ 18,600$ 1,20021 4,000$ 12,788$ 82522 7,000$ 13,563$ 87523 3,000$ 3,100$ 200The predetermined overhead rate for 2024 is based on the company’s estimated total manufacturingoverhead during all of 2024 which is $1,265,125 and the estimated total direct labor hours of 34,900.The owner of the company does not have an accounting background and doesn’t understand how…arrow_forwardPlease help me with show all calculation thankuarrow_forward
- please help mearrow_forwarda. Prepare the entry to record the factory labor costs for the month of January. b. Prepare the entry to assign factory labor to production. E15.2 (LO 1, 2, 3, 4), AP Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following. intuom Materials Requisition Slips bo FU 1 Job Number 429 430 431 to General use To $2,500 3,500 4,400 $10,400 800 $11,200 10 $12,500 1,200 $13,700 25 gan 15100 Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month. 1200 how W $1,900 3,000 7,600 Labor Time Tickets S ACE2 out 2013 Instructions a. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. b. Post…arrow_forward
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