Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. Ben10 Co. reports the following for its job order production activities for August: Raw Materials purchases $16,000 8,450 Direct Materials used Direct Labor 11,900 Indirect Materials Indirect Labor Other Factory Overhead Ben10's predetermined overhead rate is 150% of direct labor costs. Job cost sheet information for the three jobs worked on during August follows: Work in Process inventory, July 31 Direct Materials used (in July) Direct Labor used (in July) Overhead applied (July) Costs incurred in August Direct Materials used Direct Labor used 5,000 3,500 9,500 Overhead applied Status on August 31 Job401 $3,600 1,700 2,550 3,550 5,100 ? Finished/Sold Job402 3,500 6,000 ? Finished/Unsold Job403 1,400 800 ? In process Required: a. Determine the cost for factory overhead, both actual and applied, during August. Compute the amount of any over- or underapplied overhead on August 31. b. Compute the total cost of (1) each job as of August 31, (2) the August 31 inventories for both Work in Process and Finished Goods, and (3) the cost of goods sold for August. c. Prepare journal entries for the month to record each part i-vi: i. Materials purchases (on credit), direct materials used, direct labor used, and overhead applied. ii. Actual overhead costs, consisting of indirect materials, indirect labor, & other overhead costs paid in cash. iii. Transfer of each completed job to the Finished Goods Inventory account. vi. Record cost of goods sold. v. Record sale (on credit) of Job 401 for $35,000. vi Close any underapplied or overapplied overhead in Factory Overhead to Cost of Goods Sold

1. Ben10 Co. reports the following for its job order production activities for August: Raw Materials purchases $16,000 8,450 Direct Materials used Direct Labor 11,900 Indirect Materials Indirect Labor Other Factory Overhead Ben10's predetermined overhead rate is 150% of direct labor costs. Job cost sheet information for the three jobs worked on during August follows: Work in Process inventory, July 31 Direct Materials used (in July) Direct Labor used (in July) Overhead applied (July) Costs incurred in August Direct Materials used Direct Labor used 5,000 3,500 9,500 Overhead applied Status on August 31 Job401 $3,600 1,700 2,550 3,550 5,100 ? Finished/Sold Job402 3,500 6,000 ? Finished/Unsold Job403 1,400 800 ? In process Required: a. Determine the cost for factory overhead, both actual and applied, during August. Compute the amount of any over- or underapplied overhead on August 31. b. Compute the total cost of (1) each job as of August 31, (2) the August 31 inventories for both Work in Process and Finished Goods, and (3) the cost of goods sold for August. c. Prepare journal entries for the month to record each part i-vi: i. Materials purchases (on credit), direct materials used, direct labor used, and overhead applied. ii. Actual overhead costs, consisting of indirect materials, indirect labor, & other overhead costs paid in cash. iii. Transfer of each completed job to the Finished Goods Inventory account. vi. Record cost of goods sold. v. Record sale (on credit) of Job 401 for $35,000. vi Close any underapplied or overapplied overhead in Factory Overhead to Cost of Goods Sold

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
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9P: Channel Products Inc. uses the job order cost system of accounting. The following is a list of the...
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question

Dont uplode images

1. Ben10 Co. reports the following for its job order production activities for August: Raw Materials purchases $16,000 8,450 Direct Materials used Direct Labor 11,900 Indirect Materials 5,000 3,500 9,500 Indirect Labor Other Factory Overhead Ben10's predetermined overhead rate is 150% of direct labor costs. Job cost sheet information for the three jobs worked on during August follows: Work in Process inventory, July 31 Direct Materials used (in July) Direct Labor used (in July) Overhead applied (July) Costs incurred in August Direct Materials used Direct Labor used Overhead applied Status on August 31 Job401 $3,600 1,700 2,550 3,550 5,100 ? Finished/Sold Job402 3,500 6,000 ? Finished/Unsold Job403 1,400 800 ? In process Required: a. Determine the cost for factory overhead, both actual and applied, during August. Compute the amount of any over- or underapplied overhead on August 31. b. Compute the total cost of (1) each job as of August 31, (2) the August 31 inventories for both Work in Process and Finished Goods, and (3) the cost of goods sold for August. c. Prepare journal entries for the month to record each part i-vi: i. Materials purchases (on credit), direct materials used, direct labor used, and overhead applied. ii. Actual overhead costs, consisting of indirect materials, indirect labor, & other overhead costs paid in cash. iii. Transfer of each completed job to the Finished Goods Inventory account. vi. Record cost of goods sold. v. Record sale (on credit) of Job 401 for $35,000. vi. Close any underapplied or overapplied overhead in Factory Overhead to Cost of Goods Sold.
Transcribed Image Text:1. Ben10 Co. reports the following for its job order production activities for August: Raw Materials purchases $16,000 8,450 Direct Materials used Direct Labor 11,900 Indirect Materials 5,000 3,500 9,500 Indirect Labor Other Factory Overhead Ben10's predetermined overhead rate is 150% of direct labor costs. Job cost sheet information for the three jobs worked on during August follows: Work in Process inventory, July 31 Direct Materials used (in July) Direct Labor used (in July) Overhead applied (July) Costs incurred in August Direct Materials used Direct Labor used Overhead applied Status on August 31 Job401 $3,600 1,700 2,550 3,550 5,100 ? Finished/Sold Job402 3,500 6,000 ? Finished/Unsold Job403 1,400 800 ? In process Required: a. Determine the cost for factory overhead, both actual and applied, during August. Compute the amount of any over- or underapplied overhead on August 31. b. Compute the total cost of (1) each job as of August 31, (2) the August 31 inventories for both Work in Process and Finished Goods, and (3) the cost of goods sold for August. c. Prepare journal entries for the month to record each part i-vi: i. Materials purchases (on credit), direct materials used, direct labor used, and overhead applied. ii. Actual overhead costs, consisting of indirect materials, indirect labor, & other overhead costs paid in cash. iii. Transfer of each completed job to the Finished Goods Inventory account. vi. Record cost of goods sold. v. Record sale (on credit) of Job 401 for $35,000. vi. Close any underapplied or overapplied overhead in Factory Overhead to Cost of Goods Sold.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS