Predetermined overhead rate = $4347200/572000 = $7.60 per machine hour
1.
No. | General Journal | Debit | Credit |
a. | Raw materials | 314000 | |
Accounts payable | 314000 | ||
(To record raw material purchased on account) | |||
b. | Work in process (80% x $259000) | 207200 | |
Manufacturing overheads (20% x $259000) | 51800 | ||
Raw materials | 259000 | ||
(To record materials used in production) | |||
c. | Work in process ($153000 x 1/3) | 51000 | |
Manufacturing overheads ($153000 x 2/3) | 102000 | ||
Wages payable | 153000 | ||
(To record labor cost accrued) | |||
d. | Manufacturing overheads | 63600 | |
Accumulated depreciation-factory equipment | 63600 | ||
(To record depreciation expense) | |||
e. | Manufacturing overheads | 84200 | |
Accounts payable | 84200 | ||
(To record other manufacturing costs incurred) | |||
f. | Work in process (40940 x $7.60) | 311144 | |
Manufacturing overheads | 311144 | ||
(To record manufacturing overheads applied) |
2.
Manufacturing Overhead | |||
b. | 51800 | 311144 | f. |
c. | 102000 | ||
d. | 63600 | ||
e. | 84200 | ||
End. Bal. | 9544 | ||
Work in Process | |||
b. | 207200 | ||
c. | 51000 | ||
f. | 311144 | ||
End. Bal. | 569344 |
Note: Journal entry g. has not not been posted to T-accounts since not asked for in the question.
3.
No. | General Journal | Debit | Credit |
g. | Finished goods | 569344 | |
Work in process | 569344 | ||
(To record transfer to finished goods) |
4. Cost per unit = $569344/12500 = $45.55
Portion of job cost included in cost of goods sold = 10200 x $45.55 = $464610
Exercise 3-10 Applying Overhead; Journal Entries; T-accounts (LO3-1, LO3-2] Dillon Products manufactures various machined parts to...
EXERCISE 3-10 Applying Overhead; Journal Entries; T-accounts LO3-10, L03-2 Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,800,000 in manufacturing overhead cost at an activity level of 240,000 machine-hours. The company spent the entire month of January working on a large order for...
Exercise 3-10 Applying Overhead; Journal Entries; T-accounts [LO3-1, LO3-2] Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,192,500 in manufacturing overhead cost at an activity level of 559,000 machine-hours. The company spent the entire month of January working on a large order for...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would Incur $4,385,200 In manufacturing overhead cost at an activity level of 577,000 machine-hours. The company spent the entire month of January working on a large order for 12,900 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,207,500 in manufacturing overhead cost at an activity level of 561,000 machine-hours. The company spent the entire month of January working on a large order for 12,100 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,245,000 in manufacturing overhead cost at an activity level of 566,000 machine-hours. The company spent the entire month of January working on a large order for 12,600 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,800,000 in manufacturing overhead cost at an activity level of 240,000 machine hours. The company spent the entire month of January working on a large order for 16,000 custom-made machined parts. The company had...
Check m Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,230,000 in manufacturing overhead cost at an activity level of 564,000 machine-hours. The company spent the entire month of January working on a large order for 12,500 custom-made machined parts. The company had...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,166,200 in manufacturing overhead cost at an activity level of 563,000 machine-hours. The company spent the entire month of January working on a large order for 12,000 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,114,400 in manufacturing overhead cost at an activity level of 556,000 machine-hours. The company spent the entire month of January working on a large order for 12,200 custom-made machined parts. The company had no work...
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,252,500 in manufacturing overhead cost at an activity level of 567,000 machine-hours. The company spent the entire month of January working on a large order for 12,700 custom-made machined parts. The company had no work...