L01 PROBLEM 17.4A Job Order Costing: A Comprehensive Problem excel through LO5 Problem Set A Precision...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
L01 PROBLEM 17.4A Job Order Costing: A Comprehensive Problem excel through LO5 Problem Set A Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to indi- vidual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of machine-hours, and in Department B, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates: Direct labor.. Manufacturing overhead. Machine-hours Direct labor hours. Department A $420,000 $540,000 18,000 28,000 Job no. 399 (4,000 units of product): Cost of materials used on job Direct labor cost Direct labor hours Machine-hours Department B $300,000 $412,500 1,900 25,000 Production of 4,000 tachometers (job no. 399) was started in the middle of January and com- pleted two weeks later. The cost records for this job show the following information: Department A $6,800 $8,100 540 250 791 Department B $4,500 $7,200 600 100 Instructions a. Determine the overhead rate that should be used for each department in applying overhead costs to job no. 399. b. What is the total cost of job no. 399, and what is the unit cost of the product manufactured on this production order? C. Prepare the journal entries required to record the sale (on account) of 1,000 of the tachometers to SkiCraft Boats. The total sales price was $19,500. d. Assume that actual overhead costs for the year were $517,000 in Department A and $424,400 in Department B. Actual machine-hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. On the basis of this information, deter- mine the over- or underapplied overhead in each department for the year. L01 PROBLEM 17.4A Job Order Costing: A Comprehensive Problem excel through LO5 Problem Set A Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to indi- vidual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of machine-hours, and in Department B, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates as a step toward determining the overhead application rates: Direct labor.. Manufacturing overhead. Machine-hours Direct labor hours. Department A $420,000 $540,000 18,000 28,000 Job no. 399 (4,000 units of product): Cost of materials used on job Direct labor cost Direct labor hours Machine-hours Department B $300,000 $412,500 1,900 25,000 Production of 4,000 tachometers (job no. 399) was started in the middle of January and com- pleted two weeks later. The cost records for this job show the following information: Department A $6,800 $8,100 540 250 791 Department B $4,500 $7,200 600 100 Instructions a. Determine the overhead rate that should be used for each department in applying overhead costs to job no. 399. b. What is the total cost of job no. 399, and what is the unit cost of the product manufactured on this production order? C. Prepare the journal entries required to record the sale (on account) of 1,000 of the tachometers to SkiCraft Boats. The total sales price was $19,500. d. Assume that actual overhead costs for the year were $517,000 in Department A and $424,400 in Department B. Actual machine-hours in Department A were 17,000, and actual direct labor hours in Department B were 26,000 during the year. On the basis of this information, deter- mine the over- or underapplied overhead in each department for the year.
Expert Answer:
Answer rating: 100% (QA)
The image youve provided is a screenshot from a textbook or educational resource detailing a job order costing problem specifically PROBLEM 174A relat... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Monark Electronics uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of machine...
-
Precision Instruments, Inc., uses job order costing and applies manufacturing overhead to individual jobs by using predetermined overhead rates. In Department A, overhead is applied on the basis of...
-
In the Tokyo subway system, routes are labeled by letters and stops by numbers, such as G-8 or A-3. Stations allowing transfers are sets of stops. Find a Tokyo subway map on the web, develop a simple...
-
Sterling is a college professor with an extensive stock portfolio. Last year, he met Wheeler, a stockbroker with the firm of Ransom, LaForge, and Adkins. To get Sterling's business, Wheeler offered...
-
The assets and liabilities of Impeccable Travel Service at November 30, 2010, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner, Charly...
-
Euclid Corporation is subject to the book minimum tax. It has the following adjusted financial statement incomes (before the adjustment for prior financial statement losses): All four of these years...
-
Consider the liquid-level PI control system shown in Figure with the following parameter values: A = 3 ft2, R = 1.0 min/ft2, Kv = 0.2 cfm/psi, Km = 4 mA/ft, Kc 4, and 1 = 3 min. Suppose that the...
-
A sphere of 10 N is hanged as shown in figure. Find tension in the rope and reaction of wall. Wall- T R- 10 N String Sphere 60 120 R 90 10 N Free body diagram
-
Define the concept of law, ethics, and situational ethics. Once you have done this, apply these concepts to this excerpt from the Small Business Administration. The primary purpose of the Paycheck...
-
A company has 410,000 basic shares outstanding and a current stock price of $4000. A financial buyer decides to offer a 65% premium to the current share price. Calculate the equity purchase price in...
-
Lola Lewis has loved fashion all her life and grew up wanting to have her very own shop where she could buy and sell different kinds of haute couture clothing. She achieved her goal March 2023. She...
-
A multi-year lease agreement for commercial office space requires annual beginning of-year lease payments of $120,000 for each of the next five years. If the cost of capital is 10%, what is the value...
-
After tracking your cash inflows and outflows, Categorise your expenses into fixed and variable costs, and look deep into options to reduce your costs. prepare your personal financial statements...
-
What are some important properties of language? What is the difference between phonemes and morphemes? What is semantics? What is coarticulation, and why is it important? What does the view of...
-
Calculate the return on assets given the following information: common shares outstanding = 250,000; earning per share = $2.00; total assets = $2,000,000; total equity = $800,000. A. 21% B. 22% C....
-
Separate variables and use partial fractions to solve the initial value problems in Problems 18. Use either the exact solution or a computer-generated slope field to sketch the graphs of several...
-
Assume that Department A has a higher contribution margin ratio but a lower responsibility mar gin ratio than Department B. If $10,000 in advertising is expected to increase the sales of either...
-
In a process costing system, what condition must be present in order for accountants to combine direct labor and manufacturing overhead costs and treat them simply as conversion costs?
-
Eastern Supply sells a variety of merchandise to retail stores on account, but it insists that any customer who fails to pay an invoice when due must replace their account receivable with an...
-
A company owns a 6-year-old gear hobber that has a book value of \($60,000.\) The present market value of the hobber is \($80,000.Anew\) gear hobber can be purchased for \($450,000.\) Using an...
-
Identify something you own, perhaps even something you still use regularly. a. Give a list of at least six reasons why you might consider replacing the identified item. b. Identify at least two...
-
Ten reasons why companies use equipment long after replacements would be justified economically. In many cases, these reasons do not apply just to companies; rather, they apply to us as individuals....
Study smarter with the SolutionInn App