A machine shop that uses job order costing. Overhead isapplied to individual job
ID: 2433463 • Letter: A
Question
A machine shop that uses job order costing. Overhead isapplied to individual jobs ata predetermined rate based on directlabor costs. the job costs sheet for job no. 321 appearsbelow: Job Cost Sheet Job Number:321 Date Started: May 10 Product: 2" Brass Checkvalves Date Completes: May 21 Units Completed: 4,000 Direct omaterials used.....................................$7,720 Directlabor..................................................... 1,400 Manufacturing overheadapplied...................... 3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general entries to record the completion of job no.321 A machine shop that uses job order costing. Overhead isapplied to individual jobs ata predetermined rate based on directlabor costs. the job costs sheet for job no. 321 appearsbelow: Job Cost Sheet Job Number:321 Date Started: May 10 Product: 2" Brass Checkvalves Date Completes: May 21 Units Completed: 4,000 Direct omaterials used.....................................$7,720 Directlabor..................................................... 1,400 Manufacturing overheadapplied...................... 3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general entries to record the completion of job no.321 Direct omaterials used.....................................$7,720 Directlabor..................................................... 1,400 Manufacturing overheadapplied...................... 3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general entries to record the completion of job no.321Explanation / Answer
GENERAL JOURNAL
Work in Process Inventory
$12,200
Materials Inventory
$7,720
Direct Labor
$1,400
Manufacturing Overhead
$3,080
(Manufacturingcosts incurred on job no.321)
Finished Goods Inventory
$12,200
Work in Process Inventory
$12,200
(To recordcompletion of Job no. 321)
Accounts Receivable
$10,500
Sales
$10,500
(Torecord credit sale of 2,100 units from Job no. 321
@ $5 per unit)
Cost of Goods Sold
$6,405
Finished Goods Inventory
$6,405
(Torecord cost of sales for 2,100 units from Job no. 321
2,100 units * $3.05 per unit)
GENERAL JOURNAL
Work in Process Inventory
$12,200
Materials Inventory
$7,720
Direct Labor
$1,400
Manufacturing Overhead
$3,080
(Manufacturingcosts incurred on job no.321)
Finished Goods Inventory
$12,200
Work in Process Inventory
$12,200
(To recordcompletion of Job no. 321)
Accounts Receivable
$10,500
Sales
$10,500
(Torecord credit sale of 2,100 units from Job no. 321
@ $5 per unit)
Cost of Goods Sold
$6,405
Finished Goods Inventory
$6,405
(Torecord cost of sales for 2,100 units from Job no. 321
2,100 units * $3.05 per unit)
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