Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 19, Problem E19.24E
Preparing job order costing
Learning Objectives 2, 3, 4, 5i. Underallocated by $9,650
Journalize the following transactions for Marge's Sofas. Explanations are not required.
- Incurred and paid Web site expenses, $2,000.
- Incurred manufacturing wages of $1,000,75% of which was direct labor and 25% of which was indirect labor.
- Purchased raw materials on account, $24,000.
- Used in production: direct materials, $7,500; indirect materials. $5,000.
- Recorded manufacturing
overhead : depreciation on plant, $18,000: plant insurance (previously paid), $1,500; plant property tax, $3,900 (credit Property Tax Payable). - Allocated manufacturing overhead to jobs, 200% of direct labor costs.
- Completed production on
jobs with costs of $40,000. - Sold inventory on account, $22,000; cost of goods sold, $18,000.
- Adjusted for overallocated or underallocated overhead.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
INSTRUCTION: Write your answers and solutions in a piece of paper. Submit your answers in Google Classroom viaattachments.LONG PROBLEMConsider the following data of the month for Abdul Production Company: Raw Materials, Beg. P 10,000 Finished Goods, Beg. P 20,000 Work-in-Process, Beg. P 15,000A. Purchased raw material on account P28,500.B. Put material into production: P15,000 of direct material and P3,000 of indirect material.C. Accrued payroll of P90,000, of which 40% was direct labor, 20% was indirect labor, 20% was selling expense, and the remainder wasadministrative expense. Then after, the total payroll was paid.D. Depreciation for the Machinery is P40,000. The Machinery is used by all departments. 50% is used by Production Department, 25% bySales Department, and the remaining is used for administrative purposes.E. Received utility bill for the month amounting to P10,000. 50% is for Production department, 20% is for Sales Department, and 30% foradministrative purposes.F. Paid…
Preparing job order costing journal entries
Journalize the following transactions for Marge’s Sofas. Explanations are not required.
Incurred and paid Web site expenses, $2,000.
incurred manufacturing wages of $15,000, 75% of which was direct labor and 25% of which was indirect labor.
Purchased raw materials on account, $24,000.
Used in production: direct materials, $7,500; indirect materials, $5,000.
Recorded manufacturing overhead: depreciation on plant, $18,000; plant insurance (previously paid), $1,500; plant property tax, $3,900 (credit Property Tax Payable).
Allocated manufacturing overhead to jobs, 200% of direct labor costs.
Completed production on jobs with costs of $40,000.
Sold inventory on account, $22,000; the cost of goods sold, $18,000.
Adjusted for overallocated or under-allocated overhead.
eBook
Show Me How
Predetermined Factory Overhead Rate
Turbo Shop uses job order costing to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts
$678,200
Shop direct labor
495,000
Shop and repair equipment depreciation
41,000
Shop supervisor salaries
113,900
Shop property taxes
20,700
Shop supplies
15,800
13,600
58,300
7,500
$1,444,000
Advertising expense
Administrative office salaries
Administrative office depreciation expense
Total costs and expenses
The average shop direct labor rate is $15.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
per direct labor hour.
Chapter 19 Solutions
Horngren's Accounting (12th Edition)
Ch. 19 - Prob. 1QCCh. 19 - When a manufacturing company uses direct...Ch. 19 - When a manufacturing company uses indirect...Ch. 19 - When a manufacturing company uses direct labor, it...Ch. 19 - What is Gell's predetermined overhead allocation...Ch. 19 - What is Gell's actual manufacturing overhead cost?...Ch. 19 - How much manufacturing overhead would Gell...Ch. 19 - What entry would Gell make to adjust the...Ch. 19 - A manufacturing company completed work on a job....Ch. 19 - Prob. 10QC
Ch. 19 - Why do managers need to know the cost of their...Ch. 19 - What types of companies use job order costing...Ch. 19 - What types of companies use process costing...Ch. 19 - What is the purpose of a job cost record?Ch. 19 - Explain the difference between cost of goods...Ch. 19 - A job was started on May 15, completed on June 27,...Ch. 19 - Give the journal entry for raw materials purchased...Ch. 19 - What is the purpose of the raw materials...Ch. 19 - How does the use of direct and indirect materials...Ch. 19 - Give the journal entry for direct and indirect...Ch. 19 - Give five examples of manufacturing overhead...Ch. 19 - What is the predetermined overhead allocation...Ch. 19 - What is an allocation base? Give some examples.Ch. 19 - How is manufacturing overhead allocated to jobs?Ch. 19 - A completed job cost record shows the unit cost of...Ch. 19 - Explain the journal entry for the allocation of...Ch. 19 - Give the journal entry for the completion of a...Ch. 19 - Why does the sale of a completed job require two...Ch. 19 - Prob. 19RQCh. 19 - If a company incurred $5,250 in actual overhead...Ch. 19 - Refer to the previous question. Give the journal...Ch. 19 - Explain the terms accumulate, assign, allocate,...Ch. 19 - Why would the manager of a service company need to...Ch. 19 - How is the predetermined overhead allocation rate...Ch. 19 - Distinguishing between job order costing and...Ch. 19 - Accounting for materials Back Country manufactures...Ch. 19 - Accounting for materials Learning Objective 2...Ch. 19 - Accounting for labor Learning Objective 2...Ch. 19 - Accounting for overhead Learning Objective 3 Oak...Ch. 19 - Allocating overhead Learning Objective 3 Job 303...Ch. 19 - Calculating predetermined overhead allocation...Ch. 19 - Completing and selling products Learning Objective...Ch. 19 - Comparing actual to allocated overhead Learning...Ch. 19 - Calculating under/overallocated overhead Learning...Ch. 19 - Prob. S19.11SECh. 19 - Prob. S19.12SECh. 19 - Prob. S19.13SECh. 19 - Prob. S19.14SECh. 19 - Distinguishing between job order costing and...Ch. 19 - Defining terminology Learning Objectives 1,2 Match...Ch. 19 - E19-17 Accounting for job costs
Learning Objective...Ch. 19 - E19-18 Recording materials and labor...Ch. 19 - Prob. E19.19ECh. 19 - Allocating and adjusting manufacturing overhead...Ch. 19 - Prob. E19.21ECh. 19 - Prob. E19.22ECh. 19 - Prob. E19.23ECh. 19 - Preparing job order costing journal entries...Ch. 19 - Prob. E19.25ECh. 19 - E19-26 Determining missing amounts
Learning...Ch. 19 - Prob. E19.27ECh. 19 - Prob. P19.28APGACh. 19 - Prob. P19.29APGACh. 19 - Prob. P19.30APGACh. 19 - Prob. P19.31APGACh. 19 - Prob. P19.32APGACh. 19 - Prob. P19.33APGACh. 19 - Prob. P19.34BPGBCh. 19 - Prob. P19.35BPGBCh. 19 - Prob. P19.36BPGBCh. 19 - Prob. P19.37BPGBCh. 19 - Prob. P19.38BPGBCh. 19 - Using job order costing in a service company...Ch. 19 - Using Excel to calculate a predetermined overhead...Ch. 19 - P19-41 Accounting for manufacturing overhead
This...Ch. 19 - Prob. 19.1TIATCCh. 19 - Prob. 19.1DCCh. 19 - Prob. 19.1FC
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
- B AliExpress... https://ww... Ch. 15 IT (Interactive Tutorial) Question 5 of 13 Current Attempt in Progress Direct materials Direct labor Job 201 Blossom Company is working on two job orders. The job cost sheets show the following. $7,000 3,800 https://ww... Work in Process Inventory Work in Process Inventory Account Titles and Explanation (To assign materials to jobs) (To assign labor to jobs) Job 202 $8,800 (6284) Ho... 7,800 Start and... Prepare the two summary entries to record the assignment of costs to Work in Process from the data on the job cost sheets. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) DZL Homepag... Debit ACCT 210... Credit W Ch. 15 IT (... -/0.77 : WP Question... DEL Homepag... Question List Question 1 Accounting Multistep Question 2 Accounting Multistep Question 3 Accounting Dropdown Question 4 Accounting Multistep Viewing Question 5 Accounting Dropdown Question 6…arrow_forwardlike to set Microsoft Edge as your default browser? Set as default CD Job-order Costing System Activities Activity 1: The following information is for GANA Company that uses the job-order costing technique for determining cost of sales. The following data is obtained from its records for the year ended 31 st December 2020. Particular BD. Direct materials 8000 Direct labour 5000 Factory overheads 12500 Administrative overheads 3500 Selling and Distribution overheads 4500 Profit on cost 10% You are required to: 1- Prepare a Job cost sheet indicating prime cost, work cost, production cost, cost of sales and sales value.arrow_forwardFile Edit View History Bookmarks Window Help g System (Academic) A elearn.squ.edu.om gerial Accounting || tall20 Company XYZ uses a job order costing system. During the year, Job XY was started and completed. The total manufacturing cost of this Job was $15,000. The job includes 100 units. If the company uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job XY? of Select one: a. $330 b. $345 c. $270 d. None of the answers given e. $180 The prime cost of Job No. 55 was $2,500. Manufacturing Overhead was applied based on machine hours. The POHR was $130 per machine hour. Assuming Job No. 55 needed 20 machine hours to complete, calculate the cost of Job No. 55. of Select one: a. $2,636arrow_forward
- Architecture, Patter... G The Impactof Gene,.. Logo Maker & Log.. Free 3DModer Job Costs, Ending Work in Process During March, Aragon Company worked on three jobs. Data relating to these three jobs follow: Job 78 Job 79 Job 80 Units in each order 200 180 220 Units sold 180 - Materials requisitioned $1,560 $990 $2,400 Direct labor hours 220 200 400 Direct labor cost $3,000 $3,000 $3,300 Overhead is assigned on the basis of direct labor hours ata rate of $8.40 per direct labor hour. During March, Jobs 78 and 79 were completed and trańsferred to Finished Goods Inventory. Job 79 was sold by the end of the month. Job 80 was the only unfinished job at the end of the month. Required: 1. Calculate the per-unit cost of Jobs 78 and 79. Round your answers to the nearest cent. $4 per unit Job 78 $4 per unit Job 79 2. Compute the ending balance in the work-in-process inventory account. 3. Prepare the journal entries reflecting the completion of Jobs 78 and 79 and the sale of Job 79. The selling…arrow_forwardMultiple choice The journal entry to record $10,000 in manufacturing overhead applied to Job # 40 debits Blank_ question. Work in process $10,000 and credits Manufacturing overhead $10,000 Manufacturing overhead $10,000 and credits Work in process $10,000 Cost of goods sold $10,000 and credits Manufacturing overhead $10,000 Cost of goods sold $10,000 and credits Work in process $10,000 Need help? Review these concept resources.arrow_forwardE-LEARNING SERVICES - SQU LIBRARIES - SQU PORTAL MIC) ATTENDANCE Time left 1:1T3:17 Quiz XYZ Co. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Ruw Work In 12 Process Finished Goods Cost of Goods Sold Direct materials OMR 3,4400MR 8,450 MR 61,880 Direct labor OMR 6,1600MR 16,2500MR 119,000 Manufacturing overhead applied OMR 3,3000MR 6,050 OMR 45,000 Manufacturing overhead for the month was underapplied by OMR 7,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied Finis during the month in those accounts. The cost of goods sold for June after allocation of any underapplied or overapplied manufacturing overhead for the month is (rounded to nearest hparrow_forward
- Saved What journal entry would be made to record the application of $1.200 of manufacturing overhead to a job? Multiple Choice 1,200 Cost of Goods Manufactured Work in Process 1,200 Manufacturing Overhead Work in Process 1,200 1,200 Cost of Goods Manufactured 1,200 Manufacturing Overhead 1,200 1,200 Cost of Goods Manufactured Work in Process 1,200 Work in Process) 1,200 Manufacturing Overhead 1,200arrow_forwardAniMixPlay - Watch... MechMap E Indian River State C. PK Your Shopping Cart. K MAXKEY - Famous... O ne Whipped Cream Department of the John Kinky Toy Factory has the information below available for the r Jork in process inventory, March 1 17,000 faterials, March 1 6,000 urchase of materials 85,000 Cost of materials available for use Less Materials, March 31 7,000 Cost of materials placed in production Direct Labor 25,000 Factory Overhead: Indirect Labor 15,000 Indirect Materials Other factory supplies & utilities costs 9.000 Total Factory Overhead 34,000 Total manufacturing costs added Total Manufacturing costs Less: Work in Process inventory, March 31 18,500 Cost of good Manufactured Sales 235,000 Finished goods inventory, March 1 21,000 Cost of goods manufactured From Above Cost of finished goods available for sale onorlock Browser Guard"M Ir app.hoarrow_forwardeBook Question Content Area Balance of Work in Process and Finished Goods, Cost of Goods Sold Derry Company uses job-order costing. At the end of the month, the following information was gathered: Job # Total Cost Complete? Sold? 301 $1,600 Yes No 302 1,240 Yes Yes 303 780 No No 304 2,300 Yes No 305 4,150 Yes No 306 350 No No 307 710 Yes Yes 308 620 No No 309 1,200 No No 310 515 No No The beginning balance of Finished Goods was $300, consisting of Job 300, which was not sold by the end of the month. Required: 1. Calculate the balance in Work in Process at the end of the month.$fill in the blank 1 2. Calculate the balance in Finished Goods at the end of the month.$fill in the blank 2 3. Calculate Cost of Goods Sold for the month.arrow_forward
- engageNOWv2 | Online teachin X + _com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress.... A E At the end of April, Cavy Company had completed Jobs 765 and 766. The individual job cost sheets reveal the following information: Job Direct Materials Direct Labor Machine Hours Job No. 765 $8,400 30 $2,520 4,698 Job No. 766 14,877 87 Job 765 consisted of 180 units, and Job 766 consisted of 261 units. Assuming that the predetermined factory overhead rate is applied by using machine hours at a rate of $95 per hour. a. Determine the balance on the job cost sheets for each job. Job 765 Job 766 b. Determine the cost per unit at the end of April. Round your answers to the nearest cent. Job 765 Job 766 a 118 D -F10 Previous Next > Darrow_forwardmazon.com - Onli... Homework i es Booking.com McAfee Security Debit Credit Built-Tite uses job order costing. The T-account below summarizes Factory overhead activity for the current year. Factory Overhead 16,200 106,600 25,200 60,200 Amazon.com - Onli... 1. Compute total applied overhead cost. 2. Compute total actual overhead cost. 3. Compute the underapplied or overapplied overhead. 1. Total applied overhead cost 2. Total actual overhead cost 3. 252Felearning.kctcs.es Content G Image result for cur... 360 360 Instructions Q Search Savedarrow_forwardeBook Job Order Cost Accounting Entries for a Service Business Media Connect Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 55% of media purchases. On April 1, the four advertising projects had the following accumulated costs: April 1 Balances First Bank $56,000 Reliable Airlines 16,800 Motel 26 39,200 Blue Mountain Beverages 24,100 During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY