Citysites Sdn. Bhd. uses a job-order costing system. On Sept 1, Materials and Supplies Control account...

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Citysites Sdn. Bhd. uses a job-order costing system. On Sept 1, Materials and Supplies Control account had a balance of $28,000, whilst the Finished Goods (Job X10) balance on the same date was $15,000. Work in process as at Sept 1 consists of 2 jobs. Details as follows: Materials ($) 5,200 8,700 Labour ($) 2,300 3,200 Overhead ($) 3,300 5,775 Job XII X12 Direct labour cost ($) incurred and machine hours for the month of Sept : Direct Labour Cost ($) 1,900 2,300 2,500 Job Machine Hours XII 140 X12 180 X13 260 Materials (including supplies) purchased during the month amounted to $13,700. During the month of Sept, materials issued to Job XI1 were $7,500 whilst Job X12 was issued materials of $3.600. Job X13 was started during the month and received materials amounting to $8,300. No other jobs were worked on during the month. Closing balance of Materials and Supplies Control account on 30 Sept was $22,150. Jobs X11 and X13 were completed during Sept and transferred to Finished Goods. Job X10 was sold for $25,000 and Job X13 was sold for $28,800 in Sept. Other information : • Indirect labour amounted to $1,300 • Depreciation of plant equipment amounted to $5,500 • Electricity for the plant amounted to $2,200 • Factory Rental amounted to $3,800 Factory overhead is allocated on the basis of machine hours. Total factory overhead is estimated to be $1,980,000 for the current year. Citysites estimates total machine hours for the year are 72,000 hours. Citysites transfers all under / over allocated overheads to the Cost of Goods Sold at the end of each month. Required (a) Determine the predetermined overhead rate per machine hour for the year. (1 mark) (b) Determine the Indirect Materials used. (1 mark) (c) Prepare all necessary journal entries. (7 marks) (d) Compute the cost of Job X12. (1 mark) (e) Determine the under / over allocation of overhead for the month of Sept. Prepare the journal entry to record the under / over allocation of overhead. (2 marks) Citysites Sdn. Bhd. uses a job-order costing system. On Sept 1, Materials and Supplies Control account had a balance of $28,000, whilst the Finished Goods (Job X10) balance on the same date was $15,000. Work in process as at Sept 1 consists of 2 jobs. Details as follows: Materials ($) 5,200 8,700 Labour ($) 2,300 3,200 Overhead ($) 3,300 5,775 Job XII X12 Direct labour cost ($) incurred and machine hours for the month of Sept : Direct Labour Cost ($) 1,900 2,300 2,500 Job Machine Hours XII 140 X12 180 X13 260 Materials (including supplies) purchased during the month amounted to $13,700. During the month of Sept, materials issued to Job XI1 were $7,500 whilst Job X12 was issued materials of $3.600. Job X13 was started during the month and received materials amounting to $8,300. No other jobs were worked on during the month. Closing balance of Materials and Supplies Control account on 30 Sept was $22,150. Jobs X11 and X13 were completed during Sept and transferred to Finished Goods. Job X10 was sold for $25,000 and Job X13 was sold for $28,800 in Sept. Other information : • Indirect labour amounted to $1,300 • Depreciation of plant equipment amounted to $5,500 • Electricity for the plant amounted to $2,200 • Factory Rental amounted to $3,800 Factory overhead is allocated on the basis of machine hours. Total factory overhead is estimated to be $1,980,000 for the current year. Citysites estimates total machine hours for the year are 72,000 hours. Citysites transfers all under / over allocated overheads to the Cost of Goods Sold at the end of each month. Required (a) Determine the predetermined overhead rate per machine hour for the year. (1 mark) (b) Determine the Indirect Materials used. (1 mark) (c) Prepare all necessary journal entries. (7 marks) (d) Compute the cost of Job X12. (1 mark) (e) Determine the under / over allocation of overhead for the month of Sept. Prepare the journal entry to record the under / over allocation of overhead. (2 marks)

Answer rating: 100% (QA)

a Predetermined overhead rate based on machine hour 1980000 72000 Total manufacturing overheads 2750 ... View the full answer