Question

Stockman Co. began 2013 with three jobs in process.


During 2013, the following transactions occurred:
1. The firm purchased and paid for $ 542,000 of raw material.
2. Factory payroll records revealed the following: 
Indirect labor incurred was $ 54,000. 
Direct labor incurred was $ 602,800 and was associated with the jobs as follows:
Job No. Direct Labor Cost
247 ........... $ 17,400
251 ........... 8,800
253 ........... 21,000
254 ........... 136,600
255 ........... 145,000
256 ........... 94,600
257 ........... 179,400
3. Material requisition forms issued during the year revealed the following: 
Indirect material issued totaled $ 76,000. 
Direct material issued totaled $ 466,400 and was associated with jobs as follows:
Job No. Direct Material Cost
247 ........... $ 12,400
251 ........... 6,200
253 ........... 16,800
254 ........... $105,200
255 ........... 119,800
256 ........... 72,800
257 ........... 133,200
4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted OH of $ 240,000 and total DL cost of $ 600,000 for 2013. Actual total factory OH costs (including indirect labor and indirect material) for the year totaled $ 244,400.
5. Jobs # 247 through # 255 were completed and delivered to customers, who paid for the goods in cash. The revenue on these jobs was $ 2,264,774.
a. Journalize all preceding events. b. Determine the ending balances for the jobs still in process.
c. Determine the cost of jobs sold, adjusted for underapplied or overappliedoverhead.


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  • CreatedJune 03, 2014
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