Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $169,260. Estimated direct labor cost was $457,560 for 18,600 hours.
Actual costs for the most recent month are summarized here:
Item Description | Total Cost | |
Direct labor (1,860 hours) | $ | 45,757 |
Indirect costs | ||
Indirect labor | 2,520 | |
Indirect materials | 3,470 | |
Factory rent | 3,350 | |
Factory supervision | 4,840 | |
Factory depreciation | 5,750 | |
Factory janitorial work | 1,290 | |
Factory insurance | 1,890 | |
General and administrative salaries | 4,220 | |
Selling expenses | 5,320 | |
1. Record the application of manufacturing overhead to production.
2. Record the actual manufacturing overhead cost incurred.
3. Record the transfer of manufacturing overhead account balance to cost of goods sold.
1) Journal entry
Date | account and explanation | Debit | Credit |
Work in process (169260/18600*1860) | 16926 | ||
Manufacturing overhead | 16926 | ||
(To record applied overhead) |
2) Journal entry
Date | account and explanation | Debit | Credit |
Manufacturing overhead | 23110 | ||
Account payable/Cash | 23110 | ||
(To record actual overhead) |
3) Journal entry
Date | account and explanation | Debit | Credit |
Cost of goods sold (23110-16926) | 6184 | ||
Manufacturing overhead | 6184 | ||
(To record transfer manufacturing overhead) |
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $173,880. Estimated direct labor cost was $438,480 for 18,900 hours. Actual costs for the most recent month are summarized here: Total Cost $43,849 Item Description Direct labor (1,890 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $191,040. Estimated direct labor cost was $493,520 for 19,900 hours. Actual costs for the most recent month are summarized here: Total Item Description Direct labor (1,990 hours) Cost $49,353 Indirect costs Indirect labor 2,470 3,450 3,220 4,850 5,790 1,220 1,890 4,270 5,320 Indirect materials Factory...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $177,510. Estimated direct labor cost was $435,540 for 18,300 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,830 hours) $ 43,555 Indirect costs Indirect labor 2,420 Indirect materials 3,420 Factory rent 3,390 Factory supervision 4,770 Factory...
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Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $175,570. Estimated direct labor cost was $448,880 for 18,100 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,810 hours) $ 44,889 Indirect costs Indirect labor 2,590 Indirect materials 3,420 Factory rent 3,240 Factory supervision 4,750 Factory...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $175,570. Estimated direct labor cost was $448,880 for 18,100 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,810 hours) $ 44,889 Indirect costs Indirect labor 2,590 Indirect materials 3,420 Factory rent 3,240 Factory supervision 4,750 Factory...