Exercise 15-12 Don Lieberman and Associates, a CPA firm, uses job order costing
ID: 2418348 • Letter: E
Question
Exercise 15-12 Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.
Lynn Brian Mike Direct materials >>>> $660 $480 $300
Auditor labor costs >>>>> $6,180 $7,250 $3,570
Auditor hours >>>>> 74 90 51
1) Question are :
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $56 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $12,700.
(a) Determine the cost of each job. Cost Lynn $ Brian $ Mike $
(b) Indicate the balance of the Service Contracts in Process account at the end of November. Balance in service contracts in process account $
(c) Calculate the ending balance of the Operating Overhead account for November. Balance in operating overhead account $
Explanation / Answer
Don Lieberman and Associates, a CPA firm JOBS LYNN BRIAN MIKE Total Direct Material $ 660.00 $ 480.00 $ 300.00 $ 1,440.00 Auditors Labour Cost $ 6,180.00 $ 7,250.00 $ 3,570.00 $ 17,000.00 Auditor's Hours 74 90 51 Overhead Cost Applied $ 4,144.00 $ 5,040.00 $ 2,856.00 $ 12,040.00 (a) Total Cost of Job $ 10,984.00 $ 12,770.00 $ 6,726.00 $ 30,480.00 (b) Balance in service contract in process is the cost of LYNN job= $ 10,984.00 © Ending balance of operating acccount for the month of november Total Applied Ovehead $ 12,040.00 Actual Ovehead $ 12,700.00 Overhead under applied $ (660.00) The ending balance of manufacturing overhead will be a debit balance of -$660 The ending balance of manufacturing overhead would be Cost of goods sold $ 660.00 To factory overhead $ 660.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.