Company X uses a job cost system and applies overhead to production on the basis of direct labor cost. On January 1, 2018, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: DM of TL27,000, DL of TL11,600, and MOH of TL15,008. As of January 1, Job 49 had been completed at a cost of TL85,004 and was part of finished goods inventory. There was a TL13,500 balance in the raw materials inventory account. During the month of January, Company X began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for TL122,600 and TL158,040, respectively. Following additional events occurred during the month:
• Purchased additional raw materials of TL95,007 on account.
• Incurred factory labor costs of TL64,600 exclusive of payroll taxes. Payroll taxes amounted to TL16,080.
• Incurred indirect materials of TL17,000, and indirect labor of TL20,008
• Depreciation on factory equipment totalled to TL12,000
• Other factory expenses on account were TL14,000 2
• During the month, Company X assigned following costs to respective jobs as follows:
Assigned Costs DM DL
Job 50 10,000 5,700
Job 51 39,000 25,040
Job 52 30,800 20,000
Company X estimates total manufacturing overhead costs of TL887,000, direct labor costs of TL700,080 and direct labor hours 20,060 for the year.
Q-1) Compute the balance of WIP as at January 31.
Q-2) Compute the balance of FG as at January 31.
Q-3) Calculate the balance of MOH account as at January 31.
Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
Company X | ||
Predetermined overhead rate | Amount TL | Note |
Expected MOH costs | 887,000.00 | A |
Estimated direct labor costs | 700,080.00 | B |
Predetermined overhead rate | 126.70% | C=A/B |
Job Cost sheet |
|
|
|
|
|||||
Particulars | Job 50 | Job 51 | Job 52 | Total | Note | ||||
Opening work in process | |||||||||
Direct Materials | 22,700.00 | 22,700.00 | |||||||
Direct Labor | 11,600.00 | 11,600.00 | |||||||
Overhead | 15,008.00 | 15,008.00 | |||||||
Cost incurred during the month | |||||||||
Direct Materials | 10,000.00 | 39,000.00 | 30,800.00 | 79,800.00 | |||||
Auditor Labor costs | 5,700.00 | 25,040.00 | 20,000.00 | 50,740.00 | D | ||||
Overhead applied | 7,221.89 | 31,725.63 | 25,339.96 | 64,287.48 | E=C*D | ||||
Total Cost | 72,229.89 | 95,765.63 | 76,139.96 | 244,135.48 | F |
Answer 1 |
|
||
Work in Process Inventory | $ 76,139.96 | ||
|
|||
Answer 2 | Job 51 | ||
Finished goods Inventory | $ 95,765.63 | ||
Answer 3 | |||
Balance of MOH account |
|
||
Indirect materials | 17,000.00 | ||
Indirect labor | 20,008.00 | ||
Depreciation on factory equipment | 12,000.00 | ||
Other factory expenses | 14,000.00 | ||
Actual overhead | 63,008.00 | G | |
Less: Overhead applied |
|
See E | |
Balance of MOH account (Credit balance) | 1,279.48 | H=E-G |
Company X uses a job cost system and applies overhead to production on the basis of...
Use below information for Questions 5 to 7: Company X uses a job cost system and applies overhead to production on the basis of direct labor cost. On January 1, 2018, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: DM of TL27,000, DL of TL11,600, and MOH of TL15,003. As of January 1, Job 49 had been completed at a cost of TL85,007 and was part of...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,600, direct labor $12,960, and manufacturing overhead $17,280. As of January 1, Job 49 had been completed at a cost of $97,200 and was part of finished goods inventory. There was a $16,200...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $23,200, direct labor $13,920, and manufacturing overhead $18,560. As of January 1, Job 49 had been completed at a cost of $104,400 and was part of finished goods inventory. There was a $17,400...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $23,200, direct labor $13,920, and manufacturing overhead $18,560. As of January 1, Job 49 had been completed at a cost of $104,400 and was part of finished goods inventory. There was a $17,400...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,600, direct labor $12,960, and manufacturing overhead $17,280. As of January 1, Job 49 had been completed at a cost of $97,200 and was part of finished goods inventory. There was a $16,200...
Coronado Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On Janu 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24.000, direct labor $14,400, and manufacturing overhead $19,200. As of January 1, Job 49 had been completed at a cost of $108,000 and was part of finished goods inventory. There was a $18,000...
Lott Company uses a job order cost system and applies overhead
to production on the basis of direct labor costs. On January 1,
2020, Job 50 was the only job in process. The costs incurred prior
to January 1 on this job were as follows: direct materials $20,000,
direct labor $12,000, and manufacturing overhead $16,000. As of
January 1, Job 49 had been completed at a cost of $90,000 and was
part of finished goods inventory. There was a $15,000...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $23,400, direct labor $14,040, and manufacturing overhead $18,720. As of January 1, Job 49 had been completed at a cost of $105,300 and was part of finished goods inventory. There was a $17,550...
Sunland Company uses a job order cost system and applies
overhead to production on the basis of direct labor costs. On
January 1, 2020, Job 50 was the only job in process. The costs
incurred prior to January 1 on this job were as follows: direct
materials $23,800, direct labor $14,280, and manufacturing overhead
$19,040. As of January 1, Job 49 had been completed at a cost of
$107,100 and was part of finished goods inventory. There was a
$17,850...
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $22,600, direct labor $13,560, and manufacturing overhead $18,080. As of January 1, Job 49 had been completed at a cost of $101,700 and was part of finished goods inventory. There was a $16,950...