Vancouver Landscaping Company uses a job order cost system. As of January 1, its

Question

Vancouver Landscaping Company uses a job order cost system. As of January 1, its records showed the following inventory account balances. VANCOUVER LANDSCAPING COMPANY INVENTORY BALANCES AT JANUARY 1 Materials Inventory (shrubs, trees, etc.) Work in Process Inventory Finished Goods Inventory 12,000 96,000 25,000 The work in process inventory consisted of two jobs VANCOUVER LANDSCAPING COMPANY JOBS IN PROCESS AT JANUARY 1 Manufacturing Direct Materials Direct Labor Overhead 14,500 S Job 500 (1600 Pennsylvania Ave) S Job 510 (10 Downing Street) 10,000 S 12,500 29,000 20,000 10,000 Provided below is the production information (in summarized form) for the company for the month of January. The company uses the perpetual inventory method to account for all inventories.

Explanation / Answer

Solution 1:

Solution 2:

Refer T accounts in 1:

Ending material inventory = $38,000

Ending Work in process inventory = $270,000

Ending finished goods inventory = $293,500

Overapplied overhead = $309,000

Solution 3:

Overapplied overhead to be closed in WIP = $309,000 * $270,000 / ($270,000 + $293,500 + $156,500)

= $115,875

Overapplied overhead to be closed to finished goods = $309,000 * $293,500 / ($270,000 + $293,500 + $156,500)

= $125,960

Overapplied overhead to be closed to COGS = $309,000 * $156,500 / ($270,000 + $293,500 + $156,500)

= $67,165

Job Cost Sheet Particulars Job 500 Job 510 Job 520 Total Beginning WIP $53,500.00 $42,500.00 $0.00 $96,000.00 Direct materials $13,000.00 $31,000.00 $45,000.00 $89,000.00 Direct labor $30,000.00 $65,000.00 $75,000.00 $170,000.00 Manufacturing overhead applied (200% of DL) $60,000.00 $130,000.00 $150,000.00 $340,000.00 Total Job Cost $156,500.00 $268,500.00 $270,000.00 $695,000.00

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.