The Robbins Company manufactures special purpose machines to order. On January 1, there were two jobs...
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The Robbins Company manufactures special purpose machines to order. On January 1, there were two jobs in process, #705 and #706. The following costs were applied to these jobs in the prior year: Job No. Direct material Direct labor Overhead Total * * During January, the following transactions took place: Raw material costing $40,000 was purchased on account. Jobs # 707 , #708, and #709 were started and the following costs were applied to them: Direct materials Direct labor 705 $ 5,000 4,000 4,400 $13,400 * 707 $3,000 5,000 706 $ 8,000 Requirement: 3,000 3,300 $14,300 Job # 705 and Job # 706 were completed after incurring additional direct labor costs of $2,000 and $4,000, respectively Wages paid to production employees during January totaled $25,000. * Depreciation for the month of January totaled $10,000. JOB 1. Determine the January overhead rate. 2. Determine the cost of each job. 3. Determine the total cost of goods manufactured. 708 $10,000 6,000 * Utilities bills in the amount of $10,000 were paid for operations during December. * Utilities bills totaling $12,000 were received for January operations. Supplies costing $2,000 were used. Miscellaneous overhead expenses totaled $24,000 for January. Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs. 709 $7,000 4,000 The Robbins Company manufactures special purpose machines to order. On January 1, there were two jobs in process, #705 and #706. The following costs were applied to these jobs in the prior year: Job No. Direct material Direct labor Overhead Total * * During January, the following transactions took place: Raw material costing $40,000 was purchased on account. Jobs # 707 , #708, and #709 were started and the following costs were applied to them: Direct materials Direct labor 705 $ 5,000 4,000 4,400 $13,400 * 707 $3,000 5,000 706 $ 8,000 Requirement: 3,000 3,300 $14,300 Job # 705 and Job # 706 were completed after incurring additional direct labor costs of $2,000 and $4,000, respectively Wages paid to production employees during January totaled $25,000. * Depreciation for the month of January totaled $10,000. JOB 1. Determine the January overhead rate. 2. Determine the cost of each job. 3. Determine the total cost of goods manufactured. 708 $10,000 6,000 * Utilities bills in the amount of $10,000 were paid for operations during December. * Utilities bills totaling $12,000 were received for January operations. Supplies costing $2,000 were used. Miscellaneous overhead expenses totaled $24,000 for January. Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs. 709 $7,000 4,000
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Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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