PART II: PROBLEMS (80 POINTS TOTAL) A. Job-Order Costing 21. The following data
ID: 2437342 • Letter: P
Question
PART II: PROBLEMS (80 POINTS TOTAL) A. Job-Order Costing 21. The following data was obtained from historical data from Smith Company: DMS $1,300 $868 NO?s i Total Cost JOB# 1101 1221 1426 Totals DLS $1,400 $1,100 $2,030 $4,530 MOHS 53,360 $2.640 $4,872 $10,872 6,060 $4,608 $9,262 $19,930 $4,528 Smith applies overhead based on direct labor dollars. Calculate the overhead application rate. a. ANSWER: (4pts) b. Using the data from Smith Company, Job 1101 is completed and sold. The other jobs are incomplete. What is the balance in the WIP account as shown on the Balance Sheet? ANSWER: (4pts) c. What is the balance in the FG account as shown on the Balance Sheet? ANSWER: 4pts)Explanation / Answer
1. Overhead application rate based on direct labour cost=Total Overheads/Total Direct Labour Cost
=$ 19,930/$4530=$ 4.40/$ of direct labour cost.
2. In the balance sheet Work-in-Process is shown as $4608+$9262( cost incurred on job 1221& job 1426)
i.eWork-In-Process= $ 13870
3. Balance in FG account as shown in the balance sheet=$6060( cost incurred on job 1101 which has been completed)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.