TAKE HOME ASSIGNMENT 2 220 002 rice its job at cost plus s with the following 2.
ID: 2547953 • Letter: T
Question
TAKE HOME ASSIGNMENT 2 220 002 rice its job at cost plus s with the following 2. SNC produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is top 30% markup. On January 1, 2016, there was only one job in proces costs: lob A-1 Direct materials 13,500 Direct labour Applied overhead 19800 Total 22,000 $55,300 The following balances were taken from the general ledger of the company as of January 1, 2016: Direct materials inventory $35,000 Finished goods inventory (for Job D-1) $48,000 During the year 2016, the following events occurred: Direct materials were purchased on account for $225,000. Two more jobs were started: Job B-1 and Job C-1. Direct materials and direct labour costs incurred by each job in process during the year 2016 are as follows: lobA-1 lobB-1 lob C1 Direct materials $150,000 $40,000 $10,000 Direct labour $130,000 $35,000 $18,000 The company incurred the following actual factory overhead during the year: Factory rent Factory supplies 30,500 Indirect labour $80,000 $ 52,250 Jobs A-1 and B-1 were completed and Jobs A-1 and D-1 were sold. Instructions (17 marks) (a) Calculate the total applied overhead for the year 2016 if the factory overhead costs are applied to each job on the basis of direct labour dollars and the rate has not changed from the prior year. (2 marks) (b) Prepare simple job-order cost sheets for jobs A-1, B-1, and C-1 for the year ended December 31, 2016. (6 marks)Explanation / Answer
Req a: Pre-determined OH rate: Estimated OH/ Estimated labour cost*100 19800/22000 *1100 = 90% Overheads applied A-1 B-1 C-1 Total Direct labour cost 130000 35000 18000 183000 OH rate 90% 90% 90% 90% OH applied 117000 31500 16200 164700 Req b: JOB COST SHEET A-1 B-1 C-1 Total Beginning balance 55300 Direct material 150,000 40,000 10,000 200,000 Direct labour 130000 35000 18000 183000 OH applied 117000 31500 16200 164700 COST OF JOBS 452300 106500 44200 547700 Req C: Overheads incurred: Factory rent 80000 factory supplies 30500 Indirect labour 52250 Overheds incurred 162720 OH applied 164700 Over-applied overheads 1980 Req D: SCHEDULE SHOWING COCST OF GOODS SOLD Cost of Goods manufactured 558800 (452300+106500) Add: Beginnning FG 9D-1) 48000 Cost of goods available for sale 606800 Lless: ending Inventory (B-1) 106500 Unadjusted cost of goods 500300 Less: Over-applied OH -1980 Adjusted cost of goods sold 498320 Req E: Cost of JobA-1 452300 Add: markup @ 30% 135690 Selling price 587990 Req F: Material Ending balance: Beginning balance: 35000 Add: Purchase 225000 Less: material used 200000 Ending balance of Material 60000 WIP ending balance (cost of JobC-1) 44200
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.