2. Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwi
ID: 2395734 • Letter: 2
Question
2. Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $420,000 in Overhead and 30,000 direct labor hours. Pribil worked on five jobs in March. Data are as follows: 2Job 90 Job 93 $0 8,210 4,860 972 Job 89 Job 91 Job 92 Balance, 3/1 Direct Materials Direct Labor cost Direct Labor Hours $0 17,210 22,90015,240 11,500 16,250 9.750 1,950 $23,110 $18,240 S9,510 13,000 8,075 1,615 2,300 3,250 By March 31, Jobs 89 and 91 were com jobs remained in process. pleted and sold at Cost plus 55%. The rest of the Calculate the plantwide overhead rate. A) Create Job Cost Reports for the month B) Calculate the Work-in-Process on March 31 FG and COGS. C) Income Statement for the Month of MarchExplanation / Answer
Plant wide Overhead Rate
(A) Total Overheads in the year
$ 420,000.00
(B) Total Direct labor hours in the year
$ 30,000.00
(A/B) Plant wide Overhead Rate per labor hour
$ 14.00
Part A
Job Cost Report
Job 89
Job 90
Job 91
Job 92
Job 93
Opening WIP
$ 23,110.00
$ 18,240.00
$ 9,510.00
$ -
$ -
Direct Material
$ 13,000.00
$ 17,210.00
$ 22,900.00
$ 15,240.00
$ 8,210.00
Direct Labor cost
$ 8,075.00
$ 11,500.00
$ 16,250.00
$ 9,750.00
$ 4,860.00
Allocated Overhead (14*Labor Hours)
$ 22,610.00
$ 32,200.00
$ 45,500.00
$ 27,300.00
$ 13,608.00
Total Cost
$ 66,795.00
$ 79,150.00
$ 94,160.00
$ 52,290.00
$ 26,678.00
Part B
Work in progress
Job 90
$ 79,150.00
Job 92
$ 52,290.00
Job 93
$ 26,678.00
Total Work in Progress
$ 158,118.00
Finished Goods
$ 0*
*There are no goods in Finished stock
Cost of Goods Sold
Job 89
$ 66,795.00
Job 91
$ 94,160.00
Total Cost of Goods Sold
$ 160,955.00
Part C
Income Statement
sales
$ 249,480.25
Cost of Goods Sold
$ 160,955.00
Net Income
$ 88,525.25
Calculation of sales
(cogs+55%)
(160955+55%)
$ 249,480.25
Plant wide Overhead Rate
(A) Total Overheads in the year
$ 420,000.00
(B) Total Direct labor hours in the year
$ 30,000.00
(A/B) Plant wide Overhead Rate per labor hour
$ 14.00
Part A
Job Cost Report
Job 89
Job 90
Job 91
Job 92
Job 93
Opening WIP
$ 23,110.00
$ 18,240.00
$ 9,510.00
$ -
$ -
Direct Material
$ 13,000.00
$ 17,210.00
$ 22,900.00
$ 15,240.00
$ 8,210.00
Direct Labor cost
$ 8,075.00
$ 11,500.00
$ 16,250.00
$ 9,750.00
$ 4,860.00
Allocated Overhead (14*Labor Hours)
$ 22,610.00
$ 32,200.00
$ 45,500.00
$ 27,300.00
$ 13,608.00
Total Cost
$ 66,795.00
$ 79,150.00
$ 94,160.00
$ 52,290.00
$ 26,678.00
Part B
Work in progress
Job 90
$ 79,150.00
Job 92
$ 52,290.00
Job 93
$ 26,678.00
Total Work in Progress
$ 158,118.00
Finished Goods
$ 0*
*There are no goods in Finished stock
Cost of Goods Sold
Job 89
$ 66,795.00
Job 91
$ 94,160.00
Total Cost of Goods Sold
$ 160,955.00
Part C
Income Statement
sales
$ 249,480.25
Cost of Goods Sold
$ 160,955.00
Net Income
$ 88,525.25
Calculation of sales
(cogs+55%)
(160955+55%)
$ 249,480.25
Plant wide Overhead Rate
(A) Total Overheads in the year
$ 420,000.00
(B) Total Direct labor hours in the year
$ 30,000.00
(A/B) Plant wide Overhead Rate per labor hour
$ 14.00
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