Costing_ JOb Costing_27 Jan

August 15th, 2017

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2. The following cost data relate to the manufacturing activities of Black Company during the just completed year:

Manufacturing overhead costs:
Property taxes, factory	$	2,800
Utilities, factory		4,900
Indirect labor		9,900
Depreciation, factory		24,000
Insurance, factory		5,900

Total actual manufacturing overhead costs	$	47,500

Other costs incurred:
Purchases of raw materials	$	31,700
Direct labor cost	$	40,300
Inventories:
Raw materials, beginning	$	8,800
Raw materials, ending	$	6,700
Work in process, beginning	$	5,400
Work in process, ending	$	6,600

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 11,100 machine-hours was recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials.

Compute the amount of underapplied or overapplied overhead cost for the year. (Input the amount as a positive value.

2. Prepare a schedule of cost of goods manufactured for the year. (Input all amounts as positive values.)

Selected T-accounts for Rolm Company are given below for the just completed year:

1.	What was the cost of raw materials put into production during the year?
2.	How much of the materials in (1) above consisted of indirect materials?
3.	How much of the factory labor cost for the year consisted of indirect labor?
4.	What was the cost of goods manufactured for the year?
5.	What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?
6.	If overhead is applied to production on the basis of direct materials cost, what predetermined rate was in effect during the year?(Round your answer to 2 decimal places.)
7.	Was manufacturing overhead underapplied or overapplied? By how much?(Input the amount as a positive value.)
8.	Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,600 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturing overhead cost?(Round your predetermined overhead rate percentage and final answers to 2 decimal places.)

Ending balance in the work in process $

Direct labor cost $

Manufacturing overhead cost $

6.
Job 218 was one of the many jobs started and completed during the year. The job required $3,400 in direct materials and 500 hours of direct labor time at a rate of $12 per hour. If the job contained 540 units and the company billed at 75% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?

5.Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $235,500 of manufacturing overhead for an estimated allocation base of $157,000 direct material dollars.

The following transactions took place during the year (all purchases and services were acquired on account):

a.	Raw materials purchased, $152,000.
b.	Raw materials requisitioned for use in production (all direct materials), $145,000.
c.	Utility bills incurred in the factory, $24,000.
d.	Costs for salaries and wages were incurred as follows:

Direct labor	$	218,000
Indirect labor	$	79,300
Selling and administrative salaries	$	143,000

e.	Maintenance costs incurred in the factory, $16,000.
f.	Advertising costs incurred, $120,000.
g.	Depreciation recorded for the year, $50,000 (70% relates to factory assets, and the remainder relates to selling and administrative assets).
h.	Rental cost incurred on buildings, $85,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration).
i.	Miscellaneous selling and administrative costs incurred, $14,000.
j.	Manufacturing overhead cost was applied to jobs, $ ?
k.	Cost of goods manufactured for the year, $551,000.
l.	Sales for the year (all on account) totaled $1,200,000. These goods cost $530,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were as follows:

Raw Materials 23000

Work in Process 22000

Finished Goods $32000

1. Prepare Journal Entries to record A-L

Post your entries to T-accounts. (Don”t forget to enter the opening inventory balances above.) Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.(Record the transactions in the given order.)

3.	Prepare a schedule of cost of goods manufactured.(Input all amounts as positive values.)

4.	Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. Prepare a schedule of cost of goods sold 5. Prepare Income Statement for the YearClick here to have a similar paper done for you by one of our writers within the set deadline at a discounted…

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