Question

ACC378 Cost Accounting Assignment CHS Perry Company employs a job-order costing system. Only three jobs Job 205. Job W206, 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 #205 Job Cost Sheet Job #206 Job #207 Totals $ - January costs incurred: Direct material Direct labor Manufacturing overhead $16,500 13,000 20,800 $9,300 7,000 11,200 February costs incurred: Direct materials Direct labor Manufacturing overhead Totals 8,200 6,000 4.000 21,300 10,000 ? The following additional information is available: a. Manufacturing overhead is assigned to jobs on the basis of direct labor cost. b. Balances in the inventory accounts at January 31 were as follows: $40,000 Raw Material Work in Process Finished Goods 85,000

Answer 1

Predetermined overhead rate Manufacturing overhead cost Direct labor Cost Job 205 Job 206 20800 13000 11200 7000 1.60 1.60 per DLC per DLC Prepare T-accounts Work in process inventory balance as on January 31 16500+13000+20800+9300+7000+11200 77800 Raw Material BB 40000 ВВ 29500 4000 Work In Process Inventory 77800 60700 29500 20000 32000 98600 6500

BB Finished Goods Inventory 85000 60700 Manufacturing Overhead Control 4000 32000 8000 19000 1000 145700 Credit Account title & explanation Debit Work In Process Manufacturing Overhead Control Materials (To record direct and indirect material used) 29,500 4,000 33,500 20,000 8,000 Work In Process Manufacturing Overhead Control Wages Payable (To record direct and indirect labor used) 28,000 19000 Manufacturing Overhead Control Accounts Payable (To record manufacturing overhead) 19000 32,000 Work In Process Manufacturing Overhead Control (To record overheads applied) 32,000

60,700 Finished goods Work In Process (To record finished goods) 60,700