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Job cost sheets for Yoda Manufacturing are as follows: Job No 210 Quantity 1,500

ID: 2452408 • Letter: J

Question

Job cost sheets for Yoda Manufacturing are as follows:

Job No210                                                                                                           Quantity     1,500

            Date        DirectMaterials              DirectLabor                Overhead    

           July   1              7,000                          8,000                        12,000

                     8              8,500

                   10                                                11,000

                   15              5,500

                   25                                                14,000

Job No211                                                                                                           Quantity     1,200

            Date        DirectMaterials              DirectLabor                Overhead    

           July   1              4,000                          6,000                          9,000

                   10              9,000

                   15                                                  8,000

                   20              7,000

                   27                                                12,000

Part a: What was the balance in Work in Process Inventory onJuly 1 if these were the only

unfinished jobs?

Part b: What was the predetermined overhead rate in June ifoverhead was applied on the basis of direct labor cost?

Part c: If July is the start of a new fiscal year and theoverhead rate is 20% higher than in the preceding year, how muchoverhead should be applied to Job 210 in July?

Part d: Assuming Job 210 is complete, what is the total and unitcost of the job?

Part e: Assuming Job 211 is the only unfinished job at July 31,what is the balance in Work in

           Process Inventory on this date?

Explanation / Answer

a. Balance in Work inProcess Inventory

Job 210

Job 211

Total

21000 / 59000

21000 * 1.2

Job 210

66000 / 1500

a. Balance in Work inProcess Inventory

Job 210

Job 211

Total

Total Direct Material 21,000.00 20,000.00 41,000.00 Toatal Direct Labor Cost 33,000.00 26,000.00 59,000.00 Total Overhead 12,000.00 9,000.00 21,000.00 TotalBalance 66,000.00 55,000.00 121,000.00 b

21000 / 59000

PredeterminedOverhead rate inJune 35.59% c Over head to be applied in

21000 * 1.2

July Over head to be appliedin 25200 July d Total Cost of Job 210

Job 210

Total Direct Material 21,000.00 Toatal Direct Labor Cost 33,000.00 Total Overhead 12,000.00 TotalBalance 66,000.00 Unit Cost

66000 / 1500

UnitCost 44 e Balance in WIP inventory Job 211 Total Direct Material 20,000.00 Toatal Direct Labor Cost 26,000.00 Total Overhead 9,000.00 TotalBalance 55,000.00
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