A job order cost sheet for Lowry Company is shown below. Job No. 92 For 2,000 Units
Question:
A job order cost sheet for Lowry Company is shown below.
Job No. 92 | | | | | | For 2,000 Units |
Date | | Direct Materials | | Direct Labor | | Manufacturing Overhead |
Beg. bal. Jan. 1 | | 6,400 | | 6,300 | | 4,977 |
8 | | 6,300 | | | | |
12 | | | | 9,000 | | 7,560 |
25 | | 3,000 | | | | |
27 | | | | 5,000 | | 4,200 |
| | 15,700 | | 20,300 | | 16,737 |
Cost of completed job: | | |
Direct materials | | $15,700 |
Direct labor | | 20,300 |
Manufacturing overhead | | 16,737 |
Total cost | | $52,737 |
Unit cost ($52,737/2,000) | | $26.37 |
(a) On the basis of the foregoing data, answer the following questions.
(1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?
Balance in Work in Process Inventory on January 1 | | $ |
(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?
| | Last year | | Current year | |
Overhead rate | | | % | | % |
(b) Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92.
Date | Account Titles and Explanation | Debit | Credit |
Jan. 31 | | | |
| | | |
| (To record raw materials used) | | |
31 | | | |
| | | |
| (To record factory labor used) | | |
31 | | | |
| | | |
| (To record manufacturing overhead) | | |
31 | | | |
| | | |
| (To record job completed) | | |
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso