Print by: Kyle Kassa W18 ACC3020 s5 MW@10:W18 ACC3020 S5 MW@10 / Chapter 23 Home

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Print by: Kyle Kassa W18 ACC3020 s5 MW@10:W18 ACC3020 S5 MW@10 / Chapter 23 Homework *Problem 23-6A (Part Level Submission) Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows. Direct materials 3 pounds at $1.10 per pound 1.70 hour at $8.00 per hour 2 hours (variable $4.40 per machine hour; fixed $2.70 per machine $3.30 13.60 14.20 $31.10 Direct labor Overhead Standard cost per unit Normal capacity for the month was 4,470 machine hours.Dg January, the following transactions applicable to Job No. 12 occurred hour) 1. Purchased 6,080 pounds of raw materials on account at $1.18 per pound 2. Requisitioned 6,080 pounds of raw materials for Job No. 12. 3. Incurred 3,306 hours of direct labor at a rate of $7.95 per hour. 4. Worked 3,306 hours of direct labor on Job No. 12. 5. Incurred manufacturing overhead on account $29,060 6. Applied overhead to Job No. 12 on basis of standard machine hours allowed. 7. Completed Job No. 12. 8. Billed customer for Job No. 12 at a selling price of $171,000

Explanation / Answer

Note: Two journal entries are required for 8.

Raw Materials Inventory 1 6688 2 6688 Factory Labor 3 26448 4 26448 Manufacturing Overhead 5 29060 6 26980 Materials Price Variance 1 486 Materials Quantity Variance 2 418 Labor Price Variance 3 165 Labor Quantity Variance 4 608 Work in Process Inventory 2 6270 7 59090 4 25840 6 26980 Finished Goods Inventory 7 59090 8 59090 Cost of Goods Sold 8 59090

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