Question

Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company's inventory on December 2 for $5,106; on December 8 for $1,056; and on December 14 for $3,489. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $16.5 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The predetermined overhead rate is based on machine hours. The expected machine hour use for the year is 2,127 hours, and the anticipated overhead costs are $850,800 for the year. The machines were used by workers on projects K52 and J57 on December 3, 9, and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project 357 (2.5 the first day and 3 each of the other days). Both of these special orders were completed on December 15, producing 200 sprinkler heads for 357 and 100 sprinkler heads for K52. Additional job order activities during this period included: Dec. 1 Purchased raw materials from Durbin Supply Company on account for $53,400. Dec. 2 Issued $39,600 of direct materials from the company's inventory to jobs other than K52 and J57 and $3,000 of indirect materials. Dec. 12 Paid Waterways' factory salaries and wages for $64,800. Dec. 13 Paid the factory's water bill of $8,900. Dec. 18 Transferred $49,700 of costs from other completed jobs to finished goods. Dec. 21 Paid the factory's electric bill of $12,000 for Waterways' factory. Dec. 31 Made adjusting entries forth factory that included accrued property taxes of $11,900, prepaid insurance of $8,800, and accumulated depreciation of $16,200.

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Answer (a) JOB COST SHEET Direct Date Direct Direct Labor Direct Date Manufacturing Overhead Rate Amount Hours $ 3,404 S 66 2 1/2 S 400 S 1,000 S 704 02-Dec 03-Dec 08-Dec 09-Dec 14-Dec 15-Dec 3 $ 400 $ 1.200 $ 2,326 66 3 S 400 $ 1.200 Cost Summary Direct materials Direct labor Manufacturing overhead Total Cost Unit Cost ($10,032/200) Manufacturing overhead rate $ 6,434 S 198 3,400 S 10,032 $ 50.16 $850.800/2.127 Direct Materials Direct Labor Date Manufacturing Overhead Rate Amount Hours $ 1,702 33 2 S 400 S 800 $ 352 02-Dec 03-Dec 08-Dec 09-Dec 14-Dec 15-Dec S 33 2 S 400 S 800 $ 1.163 $ 33 2 S 400 S 800 Cost Summary Direct materials Direct labor Manufacturing overhead Total Cost Unit Cost ($5.716/100) Manufacturing overhead rate $ 3,217 $ 99 2.400 S 5,716 S 57.16 $850.800/2.127 3 500 Cost of Goods Sold Manufacturing Overhead (To transfer underapplied overhead to cost of goods sold) 3.500