, 2-4, 2-5, 2-, 2-51 $2-3 Comprehensive Job Order Costing Case Sampso labor hour
ID: 2338305 • Letter: #
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, 2-4, 2-5, 2-, 2-51 $2-3 Comprehensive Job Order Costing Case Sampso labor hours. Based on previous history, the company estimated its total overhead for the coming year (2016) to be $720,000 and its total direct labor hours to be 24,000. n Company uses a job order cost system with overhead applied to products based on direct On January 1, 2016, the general ledger of Sampson Company revealed that it had one job in process (Job 102) for which it had incurred a total cost of $15,000. Job 101 had been finished the previous month for a total cost of $30,000 but was not yet sold. The company had a contract for Job 103 but had not started working on it yet. Other balances in Raw Materials Inventory and other assets, liabilities, and stockholders' equity accounts are summarized on the next page.Explanation / Answer
4. In the books of Sampson Company:
5. Underapplied overhead = Applied overhead - Overhead incurred = $ 15,000 - $ 16,000 = $ 1,000.
6.
Transaction / Event Account Titles Debit Credit $ $ a. Raw Materials Inventory 10,000 Accounts Payable 10,000 b. Work in Process Inventory 7,000 Manufacturing Overhead 2,000 Raw Materials 9,000 c. Work in Process Inventory 10,000 Manufacturing Overhead 4,000 Selling, General and Administrative Expense 5,000 Salaries and Wages Payable 19,000 d. Work in Process Inventory ( $ 720,000 / 24,000) * 500 15,000 Manufacturing Overhead 15,000 e. Manufacturing Overhead 16,000 Cash 6,000 Accumulated Depreciation : Factory Equipment 5,000 Prepaid Insurance 3,000 Accounts Payable 2,000 f. Advertising Expense 2,000 Depreciation Expense 3,000 Miscellaneous Expense 1,000 Cash 2,000 Accumulated Depreciation : Office Equipment 3,000 Accounts Payable 1,000 g. Cash 55,000 Sales 55,000 g. Cost of Goods Sold 30,000 Fished Goods Inventory 30,000 h. Finished Goods Inventory 32,000 Work in Process Inventory 32,000Related Questions
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