Job No. Direct Materials Direct Labor (a) SHOW LIST OF ACCOUNTS SHOW SOLUTION SH
ID: 2498352 • Letter: J
Question
Job No.
Direct Materials
Direct Labor
(a)
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
SHOW ANSWER
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(b)
Job No. 50
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Job No. 51
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Job No. 52
Date
Direct Materials
Direct Labor
Manufacturing Overhead
SHOW LIST OF ACCOUNTS
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(c)
No.
Account Titles and Explanation
Debit
Credit
(1)
(2)
(3)
Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 20,800 , direct labor $ 12,480 , and manufacturing overhead $ 16,640 . As of January 1, Job No. 49 had been completed at a cost of $ 93,600 and was part of finished goods inventory. There was a $ 15,600 balance in the Raw Materials Inventory account.During the month of January, Deglman Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 126,880 and $ 164,320 , respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $ 93,600 on account. 2. Incurred factory labor costs of $ 72,800 . Of this amount $ 16,640 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $ 17,680 ; indirect labor $ 20,800 ; depreciation expense on equipment $ 19,760 ; and various other manufacturing overhead costs on account $ 16,640 . 4. Assigned direct materials and direct labor to jobs as follows.
Job No.
Direct Materials
Direct Labor
50 $ 10,400 $ 5,200 51 40,560 26,000 52 31,200 20,800Explanation / Answer
(a) Predetermined overhead rate for 2014, $ 1,019,200 manufacturing overhead costs / direct labor costs of $ 728,000 direct labor costs = 140% of direct labor costs.
(c)
1)Raw Materials Inventory............................................................................ 93,600
Accounts Payable........................................................................ 93,600
2)Factory Labor.............................................................................................. 72,800
Factory Wages Payable.............................................................. 56,160
Employer Payroll Taxes Payable.............................................. 16,640
3)Manufacturing Overhead........................................................................... 74,880
Accounts Payable........................................................................ 16,640
Accumulated Depreciation......................................................... 19,760
Raw Materials Inventory........................................................... 17,680
Factory Labor............................................................................. 20,800
(b) Job Cost Sheet Job No-50
Beg.
$20,800
$12,480
$16,640
$5,200
$7,280($5,200 X 140%)
Cost of completed job
Job Cost Sheet Job No-51
$26,000
$36,400($26,000 X 140%)
Cost of completed job
Job Cost Sheet Job No-52
$20,800
$29,120($20,800 X 140%)
Date Direct Materials Direct Labor Manufacturing OverheadBeg.
$20,800
$12,480
$16,640
Jan. $10,400$5,200
$7,280($5,200 X 140%)
$31,200 $17,680 $23,920Cost of completed job
Direct materials $31,200 Direct labor $17,680 Manufacturing overhead $23,920 Total cost $72,800Related Questions
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