Tamarisk’s Van Service customizes light trucks according to customers’ orders. This month the company worked on five jobs, numbered 207 through 211. Materials requisitions for the month were as follows:
Ticket | Carpet | Paint | Electronics | Other | Total | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
207 | $ | 40 | $ | 325 | $ | 635 | — | $ | 1,000 | |||||||
208 | 75 | 185 | 410 | — | 670 | |||||||||||
209 | 190 | 425 | 200 | — | 815 | |||||||||||
210 | 30 | 140 | 840 | — | 1,010 | |||||||||||
211 | 60 | — | 55 | — | 115 | |||||||||||
Indirect | — | — | — | $ | 750 | 750 | ||||||||||
Total costs | $ | 4,360 |
An analysis of the payroll records revealed the following distribution for labour costs:
Job | 207 | 208 | 209 | 210 | 211 | Other | Total | |||||||||||||||
Direct labour | $ | 1,300 | $ | 1,200 | $ | 700 | $ | 1,600 | $ | 400 | — | $ | 5,200 | |||||||||
Indirect labour | — | — | — | — | — | $ | 2,200 | 2,200 | ||||||||||||||
Total costs | $ | 7,400 |
Other overhead costs (consisting of rent, amortization, taxes, insurance, utilities, etc.) amounted to $3,600. At the beginning of the period, management anticipated that overhead costs would be $6,400 and total direct labour would amount to $5,000. Overhead is allocated on the basis of direct labour dollars.
Jobs 207 through 210 were finished during the month; Job 211 is still in process. Jobs 207 through 209 were picked up and paid for by customers. Job 210 is still on the lot, waiting to be picked up.
List of Accounts
Prepare the journal entries to reflect the incurrence of materials, labour, and overhead costs; the allocation of overhead; and the transfer of units to finished goods and cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)
Close overapplied or underapplied overhead to cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)
Overhead rate = $6400 / 5000 = $1.28 per dollar of direct labor
207 | 208 | 209 | 210 | 211 | Total | |
Direct Material | $ 1,000 | $ 670 | $ 815 | $ 1,010 | $ 115 | $ 3,610 |
Direct Labor | $ 1,300 | $ 1,200 | $ 700 | $ 1,600 | $ 400 | $ 5,200 |
Overhead Applied | $ 1,664 | $ 1,536 | $ 896 | $ 2,048 | $ 512 | $ 6,656 |
Total Costs | $ 3,964 | $ 3,406 | $ 2,411 | $ 4,658 | $ 1,027 | $ 15,466 |
Account Titles | Debit | Credit | |
Work in Process Inventory | $ 3,610 | ||
Manufacturing Overhead | $ 750 | ||
Raw Material Inventory | $ 4,360 | ||
(To record direct materials) | |||
Work in Process Inventory | $ 5,200 | ||
Manufacturing Overhead | $ 2,200 | ||
Raw Material Inventory | $ 7,400 | ||
(To record direct materials) | |||
Work in Process Inventory | $ 6,656 | ||
Manufacturing Overhead | $ 6,656 | ||
(To record overhead allocated) | |||
Manufacturing Overhead | $ 3,600 | ||
Other Payables | $ 3,600 | ||
(To record other overhead costs) | |||
Finished Goods Inventory | $ 14,439 | ||
Work in Process Inventory | $ 14,439 | ||
(To record cost of goods manufactured) | |||
Cost of Goods sold | $ 9,781 | ||
Finished Goods Inventory | $ 9,781 | ||
(To record cost of goods sold) | |||
Manufacturing Overhead | $ 106 | =6656-(750+2200+3600) | |
Cost of Goods Sold | $ 106 | ||
(To close over applied overhead) |
Tamarisk’s Van Service customizes light trucks according to customers’ orders. This month the company worked on...
Exercise 5.38 Indigo's Van Service customizes light trucks according to customers' orders. This month the company worked on five jobs, numbered 207 through 211. Materials requisitions for the month were as follows: Other - Carpet Paint Electronics $ 40 $ 365 $ 550 80 185 395 420 190 145 65 - - Total $ 955 660 805 Ticket 207 208 209 210 211 Indirect Total costs - 765 935 $ 750 115 750 $ 4,220 An analysis of the payroll...
ACC378 Cost Accounting Assignment CH5 Perry Company employs a job-order costing system. Only three jobs-Job #205, Job # 206, and Job #207- were worked on during January and February. Job #205 was completed February 10; the other two jobs were still in production on February 28, the end of the company's operating year. Job cost sheets on the three jobs follow: Job Cost Sheet Job #206 Job #205 Job #207 Totals January costs incurred: Direct material $16,500 13,000 20,800 $...
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Question 5 Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,600, direct labour $15,300, and manufacturing overhead $20,800. As of January 1, Job No. 49 had been completed at a cost of $120,000 and was part of finished goods inventory. There...
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