Question

At the beginning of the month, Mark’s Masonry had two jobs in process that had the following costs assigned from previous months:

Job Number: JB111 Direct Labor: $24k Applied Overhead: ??

Job Number: JB115 Direct Labor: $15k Applied Overhead: ??

During the month, Jobs JB111 and JB115 were completed but not billed to customers. The completion costs for JB111 required $26,000 in direct labor. For JB115, $75,000 in direct labor was used. During the month, one new job, JB120, was started but not finished. Total direct labor costs for all jobs amounted to $155,000 for the month. Overhead in this company refers to the cost of work that is not directly traced to particular jobs, including copying, printing, and travel costs to meet with clients. Overhead is applied at a rate of 70 percent of direct labor costs for this and previous periods. Actual overhead for the month was $95,000. Answer the following questions:

a. What are the costs of Jobs JB111 and JB115 at (1) the beginning of the month and (2) when completed?

b. What is the cost of Job JB120 at the end of the month?

c. How much was under- or over-applied service overhead for the month?

Part 2: Process Costing Future Robotics provides the following information for one of its department’s operations for June (no new material is added in Department A):

WIP inventory -- Department A

Beginning inventory (20,000 units, 55% complete with respect to Department A costs)

Transferred-in costs (from Department Z) $110,000

Department A conversion costs 54,000

Current work (30,000 units started)

Prior department costs 275,000

Department A costs 210,000

The ending inventory has 4,000 units, which are 30 percent complete with respect to Department A costs and 100 percent complete for prior department costs.

Complete the following:

a. Prepare a production cost report using FIFO.

Part 3: Activity-Based Costing Banquet Services uses activity-based costing to compute the costs of their catered parties. Each party is limited to 40 guests and requires five people to serve and clean up. Two types of parties, an afternoon picnic and an evening formal dinner, are offered. The breakdown of the costs follows:

Activities (and cost drivers) Afternoon Picnic Formal Dinner

Advertising (parties) $175 per party $100 per party

Planning (parties) $50 per party $75 per party

Renting equipment $75 per party plus $75 per party plus

(parties, guests) $20 per guest $20 per guest

Obtaining insurance (parties) $200 per party $400 per party

Serving (parties, servers) $60 per server per prty $90 per server per party

Preparing food (guests) $20 per guest $30 per guest

Per party costs do not vary with the number of guests. Complete the following: a. Compute the cost of a 40-guest afternoon picnic. b. Compute the cost of a 40-guest evening formal dinner. c. How much should Banquet Services charge per guest at a minimum for both Afternoon Picnics and Formal Dinners to cover their costs?

Answer 1

As per Chegg guidelines, I have answered only one question.

1 a) 2 The cost of jobs at the beginning of the month 3 JB 111 4 JB 115 40800 25500 5 85000 153000 6 The cost of jobs when completed 7 JB 111 8 JB 115 9 10 b) 11 Direct labor cost for Job JB 120 12 The cost of job JB 120 at the end of month 12 Directols or fots fer 126 at the end of month 54000 91800 13 14 c) 15 Overhead applied 16 Underapplied overhead 17 108500 -13500

А 1 a) 2 The cost of jobs at the beginning of the month 3 JB 111 4. JB 115 =24000+(24000*70%) =15000+(15000*70%) 5 6 The cost of jobs when completed 7 JB 111 8 JB 115 =40800+26000+(26000*70%) =25500+75000+(75000*70%) 10 b) 11 Direct labor cost for Job JB 120 =155000-26000-75000 12 The cost of job JB 120 at the end of month 1=54000+(54000*70%) 13 14 c) 15 Overhead applied 16 Underapplied overhead 17 =155000*70% =95000-108500