FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Textbook Question
Chapter 19, Problem 3E
Exercise 19-3
Analysis of cost flows
C2
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
Job 102 was started in production in May, and the Mowing costs were assigned to it in May: direct materials, $6,000; direct labor, $1,800; and
1. What was the cost of the raw materials requisitioned in June for each of the three jobs?
2. How much direct labor cost was incurred during June for each of the three jobs?
3. What predetermined overhead rate is used during June?
4. How much total cost is transferred to finished goods during June?
Check (4) $81,300
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Problem 17: Predetermined Factory Overhead rate and Journal Entries
Radiohead Corporation, which uses the job order costing system, had two jobs
in process at the start of the year 2030: Job 101-P570,000 and Job 102-
P237,000. The following information is available:
●
●
Radiohead applies factory overhead on the basis of machine hours.
Budgeted factory overhead and machine activity for the year were
estimated to be P P4,320,000 and 120,000 hours, respectively.
The company worked on three jobs during the first quarter. Direct
materials used, direct labor incurred, and machine hours consumed
were:
Job Number Direct Materials
101
108,000
102
103
222,000
Factory overhead during the first quarter included charges for depreciation
amounting P120,000; indirect labor P300,000; indirect materials used P24,000;
and other factory costs of P252,000. Radiohead completed job nos. 101 and
102. Job no. 101 was sold for cash, producing a gross profit of P147,600.
Direct Labor
270,000
150,000iao
210,000…
Job-Order Costing Variables
On July 1, Job 46 had a beginning balance of $710. During July, prime costs added to the job totaled $670. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job
was $1,600.
Required:
1. What was overhead applied to the job during July?
$
2. What was direct materials for Job 46 for July? Direct labor? If rounding is required, round your answers to the nearest cent.
Direct labor
Direct materials
3. Assuming that overhead is applied on the basis of direct labor cost, what is the overhead rate for the company? Round your answer to the nearest whole percent.
%
Exercise 17-14 (Algo) Allocating overhead cost to jobs using activity-based costing LO P3
Pro-Craft Company computed the following activity rates to allocate overhead cost for the year.
Activity Rate
Activity
Materials handling
Quality inspection
$ 61 per materials requisition
$ 51 per inspection
Utilities
$6 per machine hour
During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates.
Activity Cost Driver
Materials requisitions
Inspections
Machine hours
Activity Usage
Job A
Quality inspection
Utilities
Total
6
9
355
Job B
4
5
255
Allocate overhead based on actual activity usage-Job A
Activity
Activity Usage
Materials handling
Allocate overhead based on actual activity usage-Job B
Activity
Activity Usage
Materials handling
Quality inspection
Utilities
Total
Activity Rate
Activity Rate
Allocated Cost
Allocated Cost
Chapter 19 Solutions
FUND.ACCT.PRIN.
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