Question
1. Direct Labor Costs During August, Darling Company accumulated 570 hours of direct labor costs on Job 40 and 700 hours on Job 42. The
1.
Direct Labor Costs
During August, Darling Company accumulated 570 hours of direct labor costs on Job 40 and 700 hours on Job 42. The total direct labor was incurred at a rate of $18 per direct labor hour for Job 40 and $22 per direct labor hour for Job 42.
Journalize the entry to record the flow of labor costs into production during August.
2.
Issuance of Materials
On August 4, Keenan Company purchased on account 830 units of raw materials at $14 per unit. During August, raw materials were requisitioned for production as follows: 274 units for Job 40 at $11 per unit and 357 units for Job 42 at $14 per unit.
Journalize the entry on August 4 to record the purchase.
Aug. 4 | |||
Journalize the entry on August 31 to record the requisition from the materials storeroom.
Aug. 31 | |||
3.
Factory Overhead Costs
During August, Keenan Company incurred factory overhead costs as follows: indirect materials, $2,400; indirect labor, $5,870; utilities cost, $2,330; and factory depreciation, $5,670.
Journalize the entry to record the factory overhead incurred during August.
For a compound transaction, if an amount box does not require an entry, leave it blank.
4.
Applying Factory Overhead
Jernigan Company estimates that total factory overhead costs will be $77,000 for the year. Direct labor hours are estimated to be 11,000.
a. For Jernigan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places. $ per direct labor hour
b. During August, Jernigan Company accumulated 570 hours of direct labor costs on Job 40 and 630 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. $
c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
5.
Job Costs
At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 200 units, and Job 42 is for 2,000 units.
The following data relate to these two jobs:
On August 4, raw materials were requisitioned for production as follows: 300 units for Job 40 at $22 per unit and 1,300 units for Job 42 at $18 per unit.
During August, Kaye Company accumulated 700 hours of direct labor costs on Job 40 and 600 hours on Job 42. The total direct labor was incurred at a rate of $10 per direct labor hour for Job 40 and $20 per direct labor hour for Job 42.
The predetermined factory overhead rate is $13.00 per direct labor hour.
a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
Job 40 | $ |
Job 42 | $ |
b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.
Job 40 | $ |
Job 42 | $ |
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