To keep records of the actual cost of a special order job, a Job Order Cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,025 Lamp Kits @ $16.70 per kit. 9-Jan 4,225 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 580 Direct Labor Hours @ $9.65 per hour. 30-Jan Payroll of 630 Direct Labor Hours @ $9.90 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead $ 1,331.00 $ 39,873.45 On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,025 Lamp Kits @ $16.70 per kit. 9-Jan 4,225 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 580 Direct Labor Hours @ $9.65 per hour. 30-Jan Payroll of 630 Direct Labor Hours @ $9.90 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead Cost of Direct Labor Incurred in Manufacturing Job 2407 Cost of Direct Material Incurred in Manufacturing Job 2407 Cost of Manufacturing Overhead Applied to Job 2407 $ 1,331.00 $39,873.45 Cost of manufacturing one lamp Round to two places, $##.## (13.01) {13.02} (13.03) (13.04) To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,025 Lamp Kits @ $16.70 per kit. 9-Jan 4,225 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 580 Direct Labor Hours @ $9.65 per hour. 30-Jan Payroll of 630 Direct Labor Hours @ $9.90 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead $ 1,331.00 $ 39,873.45 On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,025 Lamp Kits @ $16.70 per kit. 9-Jan 4,225 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 580 Direct Labor Hours @ $9.65 per hour. 30-Jan Payroll of 630 Direct Labor Hours @ $9.90 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead Cost of Direct Labor Incurred in Manufacturing Job 2407 Cost of Direct Material Incurred in Manufacturing Job 2407 Cost of Manufacturing Overhead Applied to Job 2407 $ 1,331.00 $39,873.45 Cost of manufacturing one lamp Round to two places, $##.## (13.01) {13.02} (13.03) (13.04)
Expert Answer:
Answer rating: 100% (QA)
a Total Kits used 4225 Purchased 4050 1640 Opening In... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
Students also viewed these accounting questions
-
b) enter a formula that computes what $100 in 2016 was worth in each current year's dollars. c) using years since 1947 as the input, use the slope and intercept functions to determine the slope and...
-
The Balance Sheet of the Street and Highway Fund of the City of Monroe as of December 31, 2019, follow. CITY OF MONROE Street and Highway Fund Balance Sheet As of December 31, 2019 Assets Cash $...
-
Identify the arguments in the following dialogue, then discuss each of them in terms of the fallacies presented in this section and the previous section. You should be able to find at least one case...
-
What is the asset-liability time mismatch that all banks face?
-
How might a lack of knowledge of the law negatively impact a business?
-
Coolum Pty Ltd manufactures sunglasses that are sold to department stores, pharmacies, optical dispensers and optometrists. During the current year, Coolum Pty Ltd produced 60 000 pairs of...
-
Refer to the data for Builder Bee Equipment in P5-48B. However, assume Builder Bee Equipment uses the average cost method. Requirements 1. Prepare a perpetual inventory record using average cost....
-
Mimasca Inc. manufactures various holiday masks. Each mask is shaped from a piece of rubber in the molding department. The masks are then transferred to the finishing department, where they are...
-
Solve Var(a+btxt) =
-
Pome Company produces a single product: the Core. The following table provides the Cores details. For the upcoming year, Pome Company expects to sell 500,000 units of the Core, have total fixed costs...
-
A stock paying $5 in annual dividends is now priced at $80. It has an expected return of 16%. What might investors expect to sell for this stock one year from now?
-
The Internet of Things (IoT), as discussed in Chapter 14, has blurred the line between products and services - and, as a result, taxes. The issue is how companies are taxed, because products are...
-
Look at the following research article to see how the statistical techniques you have already learned are used in practice: Watson, J., Kinstler, A., Vidonish III, W. P., Wagner, M., Li, L., Davis,...
-
Explain how Adelphia misreported non-GAAP information.
-
Letter to Shareholders. Berkshire Hathaway's annual letter to shareholders, written by CEO Warren Buffett, happens to be one of the most interesting, down-toearth, folksy, and unique communications...
-
The opportunity for the creation of WorldCom was the court-ordered breakup of ________________, which was then forced to lease long-distance phone lines.
-
Dorian Auto is considering manufacturing three types of autos: compact, midsize, and large. The resources required for, and the profits yielded by, each type of car are shown in Table. Currently,...
-
Write a while loop that uses an explicit iterator to accomplish the same thing as Exercise 7.3. Exercise 7.3. Write a for-each loop that calls the addInterest method on each BankAccount object in a...
-
What is the master budget, and what are its components?
-
To be able to use a standard costing system, a company must develop standards that will serve as the guide for the amount of a resource (e.g., direct materials, direct labor) that should be consumed...
-
What is the general goal of trend analysis?
-
In a general sense, why does the auditor acquire an understanding of the internal control structure?
-
Explain the relationship between the audit strategy and the necessary level of understanding of the internal control structure.
-
What type of audit procedure is performed when the auditor evaluates the effectiveness of the design and operation of relevant policies and procedures of the internal control structure?
Study smarter with the SolutionInn App