job cost sheets, journal entries

Project Description:

orbit products inc. completed job 2525 onmay 31, and there were
no jobs in process in the plant. prior to june 1, the predetermined
overhead application rate for june was computed from the following
data, based on an estimate of 5,000 direct labor hours:
estimated variable factory overhead. . . . . . . . . . . . . . . . . . . . . . $20,000
estimated fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
total estimated factory overhead. . . . . . . . . . . . . . . . . . . . . . . $30,000
estimated variable factory overhead per hour . . . . . . . . . . . $ 4
estimated fixed factory overhead per hour. . . . . . . . . . . . . . . 2
predetermined overhead rate per direct labor hour. . . . $ 6
the factory has one production department and uses the
direct labor hour method to apply factory overhead.
three jobs are started during the month, and postings are
made daily to the job cost sheets from the materials requisitions
and labor-time records. the following schedule shows the jobs
and amounts posted to the job cost sheets:
job
date
started
direct
materials direct labor
direct labor
hours
2526 . . . june 1 $ 5,000 $10,000 1,600
2527 . . . june 12 10,000 15,000 1,900
2528 . . . june 15 4,000 7,000 1,300
$19,000 $32,000 4,800
the factory overhead control account was debited during the month for actual factory overhead expenses of $27,000. on june 11, job 2526 was completed and delivered to the customer at a markup of 50% on manufacturing cost. on june 24, job 2527 was completed and transferred to finished goods. on june 30, job 2528 was still in process.

required:

1. prepare job cost sheets for jobs 2526, 2527, and 2528, including factory overhead applied when the job was completed or at the end of the month for partially completed jobs.

2. prepare journal entries as of june 30 for the following:

a. applying factory overhead to production.

b. closing the applied factory overhead account.

c. closing the factory overhead account.

d. transferring the cost of the completed jobs to finished goods.

e. recording the cost of the sale and the sale of job 2526.
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 9
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