Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 2, Problem 2.5BE
Data pertaining to
Prepare job cost sheets.
(LO 2), AP
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omplete the job cost sheet for Job Alpha. (Round your intermediate calculations to 2 decimal places.)
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Direct materials
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Direct labor
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Manufacturing overhead applied
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Total job cost
Manufacturing cost data for Cullumber Company, which uses a job - order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labour cost and the rate is the same.
Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 of raw materials
and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise
indicated.)
Direct Raw
Direct
Materials Used
Labor
Job 1
$ 2,800
$ 6,000
Job 2
4,000
6,000
8,000
Job 3
4,000
Total
$12,800
$18,000
Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed
during the period and Job 3 was sold for $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory
overhead was $11,300.
Required
a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.
c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the
amount is insignificant.
d. Prepare a schedule of cost of goods…
Chapter 2 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 2 - (a) Mary Barett is not sure about the difference...Ch. 2 - Prob. 2QCh. 2 - What type of industry is likely to use a job order...Ch. 2 - What type of industry is likely to use a process...Ch. 2 - Your roommate asks your help in understanding the...Ch. 2 - Prob. 6QCh. 2 - What source documents are used in accumulating...Ch. 2 - Entries to Manufacturing Overhead normally are...Ch. 2 - Stan Kaiser is confused about the source documents...Ch. 2 - What is the purpose of a job cost sheet?
Ch. 2 - Indicate the source documents that are used in...Ch. 2 - Explain the purpose and use of a materials...Ch. 2 - Sam Bowden believes actual manufacturing overhead...Ch. 2 - What elements are involved in computing a...Ch. 2 - Prob. 15QCh. 2 - Jane Neff believes that the cost of goods...Ch. 2 - Matt Litkee is confused about under- and...Ch. 2 - At the end of the year, under- or overapplied...Ch. 2 - Dicker Company begins operations on January 1....Ch. 2 - During January, its first month of operations,...Ch. 2 - In January, Dicker Company requisitions raw...Ch. 2 - Factory labor data for Dieker Company is given in...Ch. 2 - Data pertaining to job cost sheets for Dieker...Ch. 2 - Marquis Company estimates that annual...Ch. 2 - Assign manufacturing overhead to production.(LO...Ch. 2 - In March, Stinson Company completes Jobs 10 and...Ch. 2 - Prepare entries for service salaries and wages and...Ch. 2 - At December 31, balances in Manufacturing Overhead...Ch. 2 - During the current month, Wacholz Company incurs...Ch. 2 - Milner Company is working on two job orders. The...Ch. 2 - Washburn Company produces earbuds. During the...Ch. 2 - During the current month, Standard Corporation...Ch. 2 - For Eckstein Company, the predetermined overhead...Ch. 2 - The gross earnings of the factory workers for...Ch. 2 - Stine Company uses a job order cost system. On May...Ch. 2 - A job order cost sheet for Ryan Company is shown...Ch. 2 - Manufacturing cost data for Orlando Company, which...Ch. 2 - Ikerd Company applies manufacturing overhead to...Ch. 2 - Analyze job cost sheet aid prepare entry for...Ch. 2 - Crawford Corporation incurred the following...Ch. 2 - Enos Printing Corp. uses a job order cost system....Ch. 2 - At May 31, 2017, the accounts of Lopez Company...Ch. 2 - Tierney Company begins operations on April 1,...Ch. 2 - The following are the job cost related accounts...Ch. 2 - Determine cost of jobs end ending balance in work...Ch. 2 - Tombert Decorating uses a job order cost system to...Ch. 2 - Lott Company uses a job order cost system and...Ch. 2 - For the year ended December 31, 2017, the job cost...Ch. 2 - Prepare entries in a job order cost system and...Ch. 2 - Agassi Company uses a job order cost system in...Ch. 2 - Phillips Corporations fiscal year ends on November...Ch. 2 - Huegel Hollow Resort has ordered 20 rotomolded...Ch. 2 - Khan Products Company uses a job order cost...Ch. 2 - In the course of routine checking of all journal...Ch. 2 - Communication Activity You are the management...Ch. 2 - Prob. 2.5BYPCh. 2 - Prob. 2.6BYPCh. 2 - Prob. 2.7BYP
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- Manufacturing cost data for Sheffield company, which uses a job order cost system are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places)arrow_forwardManufacturing cost data for Sunland Company, which uses a job order cost system, are presented below.Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)   Case A  Case B  Work in process 1/1/22  $enter a dollar amount  (a)  $14,570   Direct materials used  enter a dollar amount  (b)  $78,020   Direct labor  47,000   131,600   Manufacturing overhead applied  39,480   enter a dollar amount  (d)  Total manufacturing costs  136,911   enter a dollar amount  (e)  Total cost of work in process  189,410   enter a dollar amount  (f)  Work in process 12/31/22  enter a dollar amount  (c)  11,092   Cost of goods manufactured  180,762   enter a dollar amount  (g)arrow_forwardA typical job-cost sheet would provide information about all the following items related to an order except: Select one: a. applied manufacturing overhead. b. direct labor costs incurred. c. the cost of direct materials used. d. administrative costs.arrow_forward
- Using data for Vicente, compute the total manufacturing overhead for P1, allocating service department costs stepwise, beginning with department S2. After a department expenses have been allocated, no expenses are assigned back to it.arrow_forwardManufacturing cost data for Sheffield Company, which uses a job order cost system, are presented below.Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)   Case A  Case B  Case C Direct materials used  $ enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (a)  $ 88,800   $ 64,150  Direct labor  55,000   146,900   enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (h) Manufacturing overhead applied  44,000   enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (d)  enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (i) Total manufacturing costs…arrow_forwardManufacturing cost data for Sheridan Company, which uses a job order cost system, are presented below.Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)   Case A  Case B  Case C Direct materials used  $ enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (a)  $ 85,400   $ 64,150  Direct labor  51,000   146,700   enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (h) Manufacturing overhead applied  43,350   enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (d)  enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places  (i) Total manufacturing costs…arrow_forward
- Built-Tite uses job order costing. The T-account below summarizes Factory overhead activity for the current year. Factory Overhead Debit Credit 17,500 111,800 26,500 61, 500 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.arrow_forwardIn a job order cost system, factory wage expense is debited to which account? A. raw materials inventory B. work in process inventory C. finished goods inventory D. cost of goods soldarrow_forwardFreeman Furnishings has summarized its data as shown: Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hoursarrow_forward
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