B and c Instructions for Part 2 (Chapter 15) (a) Set up the job cost sheets for
ID: 2547447 • Letter: B
Question
B and c Instructions for Part 2 (Chapter 15) (a) Set up the job cost sheets for Job No. J57 and Job No. K52. Determine the total cost for each manufacturing special order for these jobs. (Round unit cost to nearest cent.) (b) Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period of time. (c) Assuming that Manufacturing Overhead has a credit balance of $3,600, determine whether overhead has been under/over applied and make the adjusting entryExplanation / Answer
Job Cost sheet Job No. J 57 Direct Materials Direct Labor Manufacturing overhead Date Amount Date Hours Rate Amount Date Machine hour Rate Amount (2/3)*4950 Dec.2 $ 3,300 Dec.3 4 $15.50 $62.00 Dec.3 2.5 $388 $970 (2/3)*1200 Dec.8 $ 800 Dec.9 4 $15.50 $62.00 Dec.9 3 $388 $1,164 (2/3)*3300 Dec 14 $ 2,200 Dec.15 4 $15.50 $62.00 Dec.15 3 $388 $1,164 Total $ 6,300 Total $186 Total $3,298 Overhead Machine hour rate $388/hour ($819456/2112hours) Cost summary Direct Materials $ 6,300 Direct Labor $186 Manufacturing Overhead $3,298 Total Cost $ 9,784 Quantity of production 230 Unit Product cost $ 42.54 (9784/230) Job Cost sheet Job No. K52 Direct Materials Direct Labor Manufacturing overhead Date Amount Date Hours Rate Amount Date Machine hour Rate Amount (1/3)*4950 Dec.2 $ 1,650 Dec.3 2 $15.50 $31.00 Dec.3 2 $388 $776 (1/3)*1200 Dec.8 $ 400 Dec.9 2 $15.50 $31.00 Dec.9 2 $388 $776 (1/3)*3300 Dec 14 $ 1,100 Dec.15 2 $15.50 $31.00 Dec.15 2 $388 $776 Total $ 3,150 Total $93 Total $2,328 Overhead Machine hour rate $388/hour ($819456/2112hours) Cost summary Direct Materials $ 3,150 Direct Labor $93 Manufacturing Overhead $2,328 Total Cost $ 5,571 Quantity of production 147 Unit Product cost $ 37.90 (9784/230) JOURNAL ENTRY Date Account title Debit Credit Dec.1 Raw material inventory $54,200 Accounts payable $54,200 Dec.2 Work in process $28,000 Raw material inventory $28,000 Dec.2 Manufacturing overhead $3,000 Raw material inventory $3,000 Dec.2 Work in process-J57 $ 3,300 Raw Material inventory $ 3,300 Dec.2 Work in process-K52 $ 1,650 Raw Material inventory $ 1,650 Dec.3 Work in process-J57 $62 Wages payable $ 62 Dec3 Work in process-K52 $31 Wages payable $ 31 Dec3 Work in process-J57 $970 Manufacturing overhead $ 970 Dec3 Work in process-K52 $776 Manufacturing overhead $ 776 Dec.8 Work in process-J57 $ 800 Raw Material inventory $ 800 Dec.8 Work in process-K52 $ 400 Raw Material inventory $ 400 Dec.9 Work in process-J57 $62 Wages payable $62 Dec9 Work in process-K52 $31 Wages payable $31 Dec9 Work in process-J57 $1,164 Manufacturing overhead $1,164 Dec9 Work in process-K52 $776 Manufacturing overhead $776 Dec.12 Wages & Salaries pyable $75,000 Cash $75,000 Dec.13 Manufacturing overhead $9,500 Cash $9,500 Dec.14 Work in process-J57 $ 2,200 Raw Material inventory $ 2,200 Dec.14 Work in process-K52 $ 1,100 Raw Material inventory $ 1,100 Dec.15 Work in process-J57 $62 Wages payable $62 Dec15 Work in process-K52 $31 Wages payable $31 Dec15 Work in process-J57 $1,164 Manufacturing overhead $1,164 Dec15 Work in process-K52 $776 Manufacturing overhead $776 Dec18 Finished goods inventory $25,000 Work in process $25,000 Dec21 Manufacturing overhead $17,000 Cash $17,000 .(c) Credit balance of $3,600 is overapplied overhead Manufacturing overhead account is debited with actual overhead incurred Manufacturing overhead account is credited with applied overhead at predetermined rate In this case , since there is a credit balance, applied overhead is more than actual overhead expenses It is overapplied overhead This can be credited to cost of goods accounts ADJUSTING JOURNAL ENTRY Date Account Title Debit Credit .Dec 31 Manufacturing overhead $3,600 Cost of goods sold $3,600
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