ABC Corporation is a manufacturing company that uses a job order costing system. The following data...

 

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ABC Corporation is a manufacturing company that uses a job order costing system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, $50,000. B. Materials used for production: Jobs Materials Factory Labor 100 $3,525 $1,500 101 $1,250 $650 102 $1,015 $450 103 $4,700 $2,200 104 $900 $400 105 $2,900 $1,300 For General Use $780 $3,750 C. Other factory overhead costs incurred on account, $4,225. D. Depreciation expense, factory machinery, $1,780. E. Applied Factory Overhead is based on Direct Labor costs. The estimated factory overhead costs are $10,000 and the estimated direct labor costs are $8,000. a. Calculate the predetermined overhead rate based on the estimates. b. Use the predetermined overhead rate to apply overhead to jobs. F. Jobs completed include: 100, 101 & 102. For jobs completed, calculate the total cost of the individual jobs and include in the appropriate T Accounts. G. Jobs shipped to customers include: 100 & 101. For the jobs sold, include the total cost of the completed and sold jobs in the appropriate T Accounts. H. Calculate ending balances for all T Accounts. I. Close out the over/underapplied overhead to cost of goods sold. ABC Corporation is a manufacturing company that uses a job order costing system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, $50,000. B. Materials used for production: Jobs Materials Factory Labor 100 $3,525 $1,500 101 $1,250 $650 102 $1,015 $450 103 $4,700 $2,200 104 $900 $400 105 $2,900 $1,300 For General Use $780 $3,750 C. Other factory overhead costs incurred on account, $4,225. D. Depreciation expense, factory machinery, $1,780. E. Applied Factory Overhead is based on Direct Labor costs. The estimated factory overhead costs are $10,000 and the estimated direct labor costs are $8,000. a. Calculate the predetermined overhead rate based on the estimates. b. Use the predetermined overhead rate to apply overhead to jobs. F. Jobs completed include: 100, 101 & 102. For jobs completed, calculate the total cost of the individual jobs and include in the appropriate T Accounts. G. Jobs shipped to customers include: 100 & 101. For the jobs sold, include the total cost of the completed and sold jobs in the appropriate T Accounts. H. Calculate ending balances for all T Accounts. I. Close out the over/underapplied overhead to cost of goods sold.

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a To calculate the predetermined overhead rate based on the estimates Predetermined Overhead Rate Es... View the full answer