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CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION 4 BACK NEXT Exercise 2-2 (Video) Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $4,140 and two jobs in process: Job No. 429 $2,450, and Job No. 430 $1,690. During May, a summary of source documents reveals the following. Materials Labor Time Job Number Requisition Slips Tickets 429 $2,920 $2,200 430 3,610 3,400 4,870 $11,400 8,000 $13,600 General use 1,600 $12,360 $15,200 431 960 Stine Company applies manufacturing overhead to jobs at an overhead rate of 65% of direct labor cost. Job No. 429 is completed during the month. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Debit Credit No. Date Account Titles and Explanation (1) May 31 (2) 31 (3) 31 (4) 31 Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Post entries in the order of journal entries presented in the previous part.) Work In Process Inventory . + Job Beginning Work No. In Process Job Cost Sheets Direct Direct Material Labor Manufacturing Overhead Total 430 $ 431 Exercise 2-5 (Video) Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $344,025 for the year, and machine usage is estimated at 125,100 hours. For the year, $366,875 of overhead costs are incurred and 130,100 hours are used. Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.) Manufacturing overhead rate per machine hour What is the amount of under-or overapplied overhead at December 31? Manufacturing Overhead Prepare the adjusting entry to assign the under or overapplied overhead for the year to cost of goods sold. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Exercise 2-6 (Video) A job cost sheet of Sandoval Company is given below. JOB NO. ITEM Job Cost Sheet 469 Quantity White Lion Cages Date Requested Todd Company Date Completed Direct Direct Materials Labor FOR 2,000 7/2 7/31 Manufacturing Overhead Date 7/10 700 12 900 15 400 480 22 300 360 24 1,620 1,520 27 31 500 600 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost MY INSTRUCTOR FULL SCREEN PRINTER VERSION & BACK NE (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? Source Documents Direct materials + Direct labor Manufacturing overhead . (2) Overhead is applied on the basis of direct labor cost. What is the predetermined manufacturing overhead rate? Predetermined manufacturing overhead rate % (3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.) Total cost of the Lompleted job $ Unit cost of the completed job $ Prepare the entry to record the completion of the job. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 1. 3. Exercise 2-7 (Video) Crawford Corporation incurred the following transactions Purchased raw materials on account $53,000 2. Raw Materials of $45,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,400 was classified as indirect Factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. Time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. Manufacturing overhead costs incurred on account were $81,700 6. Depreciation on the company's office building was $8,100. Manufacturing overhead was applied at the rate of 160% of direct labor cost Goods costing $89,400 were completed and transferred to finished goods. Finished goods costing $76,000 to manufacture were sold on account for $105,100. 4. 7. 8 (1) (2) (3) (5) (6) (8) (9) (To record the sale) (To record the cost of the sale) ESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION CES Exercise 2-8 (Video) Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. Materials purchased on account $193,600, and factory wages incurred $94,300. 2. Materials requisitioned and factory labor used by Job: Materials Job Number A20 A21 A22 A23 General factory use $37,540 45,820 37,300 41,470 4,770 $166,900 Factory Labor $19,300 23,300 17,100 26,600 8,000 $94,300 udy 3. Manufacturing overhead costs incurred on account $51,800, 4. Depreciation on factory equipment $16,450. 5. Depreciation on the company's office building was $15,000. 6. Manufacturing overhead rate is 85% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23. Prepare a schedule showing the Individual cost elements and total cost for each job In Item 7. Direct Direct Manufacturing Job Materials Labor Overhead Total A20 A21 A23 Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amo manually.) No. Account Titles and Explanation Debit Credit (1) (To record materials purchases) (To record factory wages) (To record labor put into production) (3) 4) (5) (6) (3) (4) (5) (6) (7) Exercise 2-9 (Video) At May 31, 2020, the accounts of Lopez Company show the following. 1. May 1 Inventories-finished goods $15,000, work in process $16,900, and raw materials $9,300. 2. May 31 Inventories-finished goods $9,900, work in process $17,100, and raw materials $7,300. 3. Debit postings to work in process were direct materials $64,500, direct labor $52,400, and manufacturing overhead applied $42,700. (Assume that overhead applied was equal to overhead incurred.) 4. Sales revenue totaled $216,500. Prepare a condensed cost of goods manufactured schedule. Prepare a condensed cost of goods manufactured scheduises. LOPEZ COMPANY Cost of Goods Manufactured Schedule Prepare an income statement for May through gross profit. LOPEZ COMPANY (Partial) Income Statement Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2020. LOPEZ COMPANY (Partial) Balance sheet + ly CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT CELE 2-22 Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November. Waters Inc. Renolds Inc. Bayfield Inc. Direct materials $610 $410 $210 Auditor labor costs $5,500 $6,700 $3,475 Auditor hours 73 89 46 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $51 per auditor hour. The Waters job is the only incomplete job at the end of November. Actual overhead for the month was $12,100. (a) Determine the cost of each job. Cost Waters $ Renolds Bayfield (b) Indicate the balance of the Service Contracts in Process account at the end of November Balance in service contracts in process account $ (c) Calculate the ending balance of the Operating Overhead account for November Balance in operating overhead account Problem 2-1A (Video) 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 $24,800, direct labor $14,880, and manufacturing overhead $19,840. As of January 1, Job 49 had been completed at a cost of $111,600 and was part of finished goods inventory. There was a $18,600 balance in the Raw Materials Inventory account. During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs. 50 and 51. Jobs 49 and 50 were also sold on account during the month for $151,280 and $195,920, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $111,600 on account. 2. Incurred factory labor costs of $86,800. of this amount $19,840 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: Indirect materials $21,080; Indirect labor $24,800; depreciation expense on equipment $14,880; and various other manufacturing overhead costs on account $19,840. Assigned direct materials and direct Inbor to jobs as follows. Job No. Direct Materials Direct Labor 50 $12,400 $6,200 51 48,360 31,000 52 37,200 24,800 3. Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $1,041,600, direct labor costs of $868,000, and direct labor hours of 24,800 for the year. Predetermined overhead rate Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) I y Prepare the journal entries to record the assignment of (1) direct materials, (2) direct labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not Indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) (3) I Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessar Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. Jan. Cost of completed job Direct materials $ ly Direct labor Manufacturing overhead Total cost $ Job No. 51 Date Direct M Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost $ Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically ind entered. Do not indent manually.) Prepare the journal entry to record the completion of any job(s) during the month. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entries to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not Indent manually.) Debit Credit No. Account Titles and Explanation (1) (To record sale of jobs) (2) (To record cost of jobs) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of? Finished Goods Inventory I $ What is the amount of over or underapplied overhead? Manufacturing Overhead