Papillion Corporation uses standard costs with its job order cost accounting system. In January, an order (Job

Question:

Papillion 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.

image

Normal capacity for the month was 4,200 machine hours. During January, the following transactions applicable to Job No. 12 occurred.1. Purchased 6,250 pounds of raw materials on account at $1.06 per pound.2. Requisitioned 6,250 pounds of raw materials for Job No. 12.3. Incurred 2,100 hours of direct labor at a rate of $7.75 per hour.4. Worked 2,100 hours of direct labor on Job No. 12.5. Incurred manufacturing overhead on account $25,800.6. 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 $70,000.Instructions(a) Journalize the transactions.(b) Post to the job order cost accounts.(c) Prepare the entry to recognize the total overhead variance.(d) Prepare the January 2012 income statement for management. Assume selling and administrative expenses were $2,000.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

Question Posted: