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    "question_id": "4438396",
    "url": "\/study-help\/questions\/abc-company-uses-a-job-order-cost-system-and-applies-4438396",
    "question_creation_date_js": "2024-06-29T01:25:06-04:00",
    "question_creation_date": "Jun 29, 2024 01:25 AM",
    "meta_title": "[Solved] ABC Company uses a job order cost system | SolutionInn",
    "meta_description": "Answer of - ABC Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On Jan | SolutionInn",
    "meta_keywords": "abc,company,job,order,cost,system,applies,overhead,production,basis,direct,labor",
    "question_title_h1": "ABC Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job",
    "question_title": "ABC Company uses a job order cost system and applies overhead to",
    "question_title_for_js_snippet": "ABC Company uses a job order cost system and applies overhead to production on the basis of direct labor costs  On January 1, 2014, Job No  50 was the only job in process  The costs incurred prior to January 1 on this job were as follows  direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000  As of January 1, Job No  49 had been completed at a cost of $90,000 and was part of finished goods inventory  There was a $15,000 balance in the Raw Materials Inventory account  During the month of January, ABC Company began production on Jobs 51 and 52, and completed Jobs 50 and 51  Jobs 49 and 50 were sold on account during the month for $122,000 and $158,000, respectively  The following additional events occurred during the month  1 Purchased additional raw materials of $90,000 on account  2 Incurred factory labor costs of $70,000  Of this amount $16,000 related to employer payroll taxes  3 Incurred manufacturing overhead costs as follows  indirect materials $17,000  indirect labor $20,000  depreciation expense on equipment $19,000  and various other manufacturing overhead costs on account $16,000  4 Assigned direct materials and direct labor to jobs as follows  Job No Direct MaterialsDirect Labor 50$10,000$ 5,000 51 39,000 25,000 52 30,000 20,000 Required  All answers will be entered in the Excel Spreadsheet that you will download  The spreadsheet has tabs labeled for the different parts of the problem  Once you have completed the problem, you will upload the spreadsheet to the Unit 6  Assignment  4 Dropbox  You must upload the file before 11 59 pm on Tuesday  a Calculate the predetermined overhead rate for 2014, assuming ABC Company estimates total manufacturing overhead costs of $980,000  direct labor costs of $700,000  and direct labor hours of 20,000 for the year  b Open job cost sheets for Jobs 50, 51, and 52  Enter the January 1 balances on the job cost sheet for Job No  50  c Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January  d Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production  In assigning manufacturing overhead costs, use the overhead rate calculated in (a)  Post all costs to the job cost sheets as necessary  e Total the job cost sheets for any job(s) completed during the month  Prepare the journal entry (or entries) to record the completion of any job(s) during the month  f Prepare the journal entry (or entries) to record the sale of any job(s) during the month  g What is the balance in the Finished Goods Inventory account at the end of the month  h What is the amount of over applied or under applied overhead ",
    "question_description": "<p>ABC Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.<\/p> <p> <\/p> <p>During the month of January, ABC Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.<\/p> <p> <\/p> <p>1.Purchased additional raw materials of $90,000 on account.<\/p> <p>2.Incurred factory labor costs of $70,000. Of this amount $16,000 related to employer payroll taxes.<\/p> <p>3.Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $20,000; depreciation expense on equipment $19,000; and various other manufacturing overhead costs on account $16,000.<\/p> <p>4.Assigned direct materials and direct labor to jobs as follows:<\/p> <p> <\/p> <p>Job No.Direct MaterialsDirect Labor<\/p> <p>50$10,000$ 5,000<\/p> <p>51 39,000 25,000<\/p> <p>52 30,000 20,000<\/p> <p> <\/p> <p>Required:<\/p> <p>All answers will be entered in the Excel Spreadsheet that you will download. The spreadsheet has tabs labeled for the different parts of the problem. Once you have completed the problem, you will upload the spreadsheet to the Unit 6: Assignment #4 Dropbox. You must upload the file before 11:59 pm on Tuesday. <\/p> <p> <\/p> <p>a.Calculate the predetermined overhead rate for 2014, assuming ABC Company estimates total manufacturing overhead costs of $980,000; direct labor costs of $700,000; and direct labor hours of 20,000 for the year.<\/p> <p>b.Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.<\/p> <p>c.Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.<\/p> <p>d.Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.<\/p> <p>e.Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.<\/p> <p>f.Prepare the journal entry (or entries) to record the sale of any job(s) during the month.<\/p> <p>g.What is the balance in the Finished Goods Inventory account at the end of the month?<\/p> <p>h.What is the amount of over-applied or under-applied overhead?<\/p>",
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    "related_book": {
        "title": "Intermediate Accounting",
        "isbn": "470964731, 978-0470964736, 978-0470161012",
        "edition": "9th Canadian Edition, Volume 2",
        "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.",
        "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg",
        "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516",
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    "question_posted": "2024-06-29 01:25:06",
    "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12",
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