Assistance please The Harriott manufacturing company uses job order costing system. The company uses machinehours to apply overthead cost to jobs. At the beginning of ao20, the company estimated that 31.400machine hours would be worked and s5.024,000 overhead cost would be incurred during a020.The following activities took place in the work in process inventory during February:WIP Inventory A/CNovember i Bal. b/f$51.a50Direct Materials Used256,400Other transactions incurred:• Indirect material issued to production was s40,36o• Total manufacturing labour incurred in November was sy68,000, 75% of this amountrepresented direct labour.Other manufacturing overhead costs incurred for November amounted to s340.490.Two jobs were completed with total costs of syk4.000 & sa70,000 respectively. They weresold on account at a margin of 33%% on sales.Required:i)Compute Harriott's predetermined manufacturing overhead rate for 2020.i)State the journal entries necessary to record the above transactions in the general journal:a) For direct materials used in Novemberb) For indirect material issued to production in Novembere) For total manufacturing labour incurred in Novemberd) To assign manufacturing labour to the appropriate accountse) For other manufacturing overhead incurredO For manufacturing overhead applied to production for November, given that Harriottmanufacturing company worked a,860 machine hours.g) To move the completed jobs into finished goods inventoryh) To sell the two completed jobs on accountCalculate the manufacturing overhead variance for Harriott and state the journal entriesnecessary to dispose of the variance.iii)iv)What is balance on the Cost of Goods Sold account after the adjustmentv)Calculate the gross profit earned by Harriott on the jobs completed.vi)Determine the balance in work in process inventory on November 30.

Job Costing It is a method of costing where all the costs like direct material, direct labour and…

The Harriott manufacturing company uses job order costing system. The company uses mac hours to apply overhead cost to jobs. At the beginning of aoao, the company estimated that machine hours would be worked and ss,04.000 overhead cost would be incumed during aon The following activities took place in the work in process inventory during February: WIP laventory A/C November Bal. b/f Direct Materials Used a56.00 Other transactions incurred: • Indirect material issued to production was sn o • Total manufacturing labour incurred in November was sy6k.oo0, 75% of this represented direct labour. • Other manufacturing overhead costs incurred for November amounted to s0490. • Two jobs were completed with total costs of syl.o0o & sayo,000 respectively. They sold on account at a margin of 3y% on sales.

The Harriott manufacturing company uses job order costing system. The company uses mac hours to apply overhead cost to jobs. At the beginning of aoao, the company estimated that machine hours would be worked and ss,04.000 overhead cost would be incumed during aon The following activities took place in the work in process inventory during February: WIP laventory A/C November Bal. b/f Direct Materials Used a56.00 Other transactions incurred: • Indirect material issued to production was sn o • Total manufacturing labour incurred in November was sy6k.oo0, 75% of this represented direct labour. • Other manufacturing overhead costs incurred for November amounted to s0490. • Two jobs were completed with total costs of syl.o0o & sayo,000 respectively. They sold on account at a margin of 3y% on sales.

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...

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Leen Production Co. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of May: a. Compute the total production cost of each job. b. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. c. Compute the selling price per unit for each job, assuming a mark-on percentage of 40%. d. Prepare the journal entries to record the sale of Job 1065.
Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580
On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Required: 1. Calculate the predetermined overhead rate based on direct labor cost. 2. Calculate the ending balance for each job as of August 31. 3. Calculate the ending balance of Work in Process as of August 31. 4. Calculate the cost of goods sold for August. 5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairles sales revenue for August.
OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of March: a. Compute the total production cost of each job. b. Prepare the journal entries to charge the costs of materials, labor, and factory overhead to Work in Process. c. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. d. Compute the unit cost of each job. e. Compute the selling price per unit for each job, assuming a mark-on percentage of 50%.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Terrills Transmissions uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows: The following transactions were completed during November: a. Materials purchases on account during the month, 74,000. b. Materials requisitioned during the month: 1. Direct materials, 57,000. 2. Indirect materials, 11,000. c. Direct materials returned by factory to storeroom during the month, 1,100. d. Materials returned to vendors during the month prior to payment, 2,500. e. Payments to vendors during the month, 68,500. Required: 1. Prepare general journal entries for each of the transactions. 2. Post the general journal entries to T-accounts. 3. Balance the accounts and report the balances of November 30 for the following: a. Cash b. Materials c. Accounts Payable
During March, the following costs were charged to the manufacturing department: $14886 for materials; $14,656 for labor; and $13,820 for manufacturing overhead. The records show that 30,680 units were completed and transferred, while 2,400 remained in ending inventory. There were 33,080 equivalent units of material and 31,640 of conversion costs. Using the weighted-average method, what is the cost of inventory transferred and the balance in work in process inventory?
On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Cairles selling and administrative expenses for August were 1,200. Required: Prepare an income statement for Cairle Company for August.
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at $1.25 for each direct labor dollar spent. What is the total cost for each of the jobs?
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information: During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March: At the end of March, Jobs 86, 87, and 89 were completed. Only Job 87 was sold. On March 1, the balance in Finished Goods was zero. Required: 1. Calculate the overhead rate based on direct labor cost. (Note: Round to three decimal places.) 2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of March 1 as well as direct materials and direct labor added in March. Apply overhead to the four jobs for the month of March, and show the ending balances. 3. Calculate the ending balances of Work in Process and Finished Goods as of March 31. 4. Calculate the Cost of Goods Sold for March.