Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

38. Comparing job costs to management's expectations. Polebarn Construction Incorporated uses a job costing system. It applies overhead to jobs at a rate of 60

image text in transcribed

38. Comparing job costs to management's expectations. Polebarn Construction Incorporated uses a job costing system. It applies overhead to jobs at a rate of 60 percent of direct labor cost. On November 1, the balance in the Work-in-Process Inventory account was $100,000. It had the following jobs in process on November 1: Job No. 15 Total $ 45,000 18,000 37,000 $100,000 16 17 Total Selected transactions for the month of November follow: (1) Direct materials issued: Job 17, $23,000; Job 18, $15,500; Job 19, $29,000. (2) Polebarn assigned direct labor costs as follows: Job 15, $13,000; Job 16, $8,500; Job 17, $10,500; Job 18, $26,000; Job 19, $34,500. (3) It applies overhead for November to jobs using an overhead rate of 60 percent of direct labor costs. Actual overhead for the month was $70,352. (4) It completed Jobs 15 and 16 in November. Polebarn Construction Inc.'s management is concerned that costs are higher than anticipated. Managers had expected the cost of completed jobs to be as follows: Job 15: $70,000, when complete Job 16: $30,000, when complete Job 17: $60,000, as of November 30 Job 18: $60,000, as of November 30 Job 19: $80,000, as of November 30 Compare the actual job costs to management's expected costs, and report your results

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

14th Canadian Edition

0135222419, 978-0135222416

More Books

Students also viewed these Accounting questions

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago