Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the...

 

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Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $808,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. 64 Direct Material $21,000 Direct Labor $35,000 Machine Hours 1,200 65 22,000 708 66 67 44,000 15,000 65,000 8,800 2,000 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($33,300), indirect labor ($60,100). indirect materials used ($5,100), and other factory costs ($139,600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,700 for the firm. 3. Determine the cost of jobs still in production as of March 31. Answer is complete but not entirely correct. Cost of the jobs in production $ 110,750 Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $808,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: Job No. 64 Direct Material $21,000 Direct Labor $35,000 Machine Hours 1,200 65 22,000 708 66 67 44,000 15,000 65,000 8,800 2,000 500 c. Manufacturing overhead during the first quarter included charges for depreciation ($33,300), indirect labor ($60,100). indirect materials used ($5,100), and other factory costs ($139,600). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,700 for the firm. 3. Determine the cost of jobs still in production as of March 31. Answer is complete but not entirely correct. Cost of the jobs in production $ 110,750

Answer rating: 100% (QA)

To determine the cost of jobs still in production as of March 31 we need to calculate the total costs incurred for the jobs in progress Given Jobs in progress at the start of 20x1 Job No 64 84100 and Job No 65 53500 Direct materials direct labor and machine hours for each job during the first quarter are provided Lets calculate the total costs for the jobs in progress as of March 31 Job No 64 Direct materials 21000 Direct labor 35000 Machine hours 1200 Total cost for Job No 64 Direct materials Direct labor 21000 35000 56000 Job No 65 Direct materials 22000 Direct labor 44000 Machine hours 2000 Total cost for Job No 65 Direct materials Direct labor 22000 44000 66000 Therefore the total cost ... View the full answer