Accounting $2120$

Chapter $16-$Job Order Costing

Assignment $1$

I. Journalizing transactions; calculating overhead; adjusting manufacturing overhead; proving ledger account balances

a$.$ Follow instructions in numbers $1$ & $2.**$The job cost sheets are shown below $($page $2).$ For #$1$ just name each cost sheet and enter beginning balances shown

b$.$ For #$2,$ Name the cost sheet

c$.$ Journalize numbers $3,5$ through $10,$ and $12$;$**$ Number $4$ just requires you to calculate the predetermined overhead rate; #$11$ requires you to determine over or under applied overhead

At the beginning of the period, May $1,$ three jobs were in process: Job $510(DM=$$$6500$; $DL=$$$8200$;$MO=$$$6150,$ and Job $)=$$$6,300$;$DL=$$$8,800$;$MO=($$$6,600$; Job $512($DM $=$$$4,400$;$DL=$$$5,900$;$MO=$$$4,425).$ Create job cost sheets for each job.

During the month Job $513$ was started. Create a job sheet for this job.

Purchased raw material on account $$102,500$

Estimated annual overhead costs: $$251,250$; Cost driver identified: Direct labor costs; estimated annual direct labor costs: $$335,000$; Calculate the pre$-$determined overhead rate. $75$ or $75\%$

Requisitioned $$43,000$ of material; $$10,250$ was for Job $510,$$$8,500$ was for job $511,$ $$12,200$ was for Job $512,$$$10,500$ was for Job $513,$ and the remainder was indirect material. Update the job cost sheets

Assigned $$65,000$ in labor costs; $$14,250$ was for Job $510,$$$13,425$ was for Job $511,$ $$12,950$ was for Job $512,$$$13,100$ was for Job $513,$ and the remainder was indirect labor. Update the job cost sheets.

Calculate the amount of overhead to apply if total direct labor costs for the period equals $$53,725($journalize the transaction and round to nearest dollar$)$; calculate the amount of overhead to apply to jobs $510,511,$ and $512,$ and $513.$ Update the job cost sheet.

Other manufacturing overhead costs for the period include:

a$.$ Factory utilities: $$6,500$

b$.$ Factory depreciation: $$6,000$

c$.$ Factory Rent $($paid in advance$)7,000$

d$.$ Insurance $($paid in advance$)$: $$2,000$

e$.$ Repairs $($charge to $\frac{a}{p})$: $$3,500$

f Factory Maintenance $($paid$)$: $$3,000$

Jobs $510,511,$ and $512$ were completed this period. Total the job cost sheets and prepare necessary journal entry.

Job $510$ was sold for $$71,000($customer paid $20\%$ and the remainder was on account$)$; Job $511$ was sold for $$67,500($customer paid $$18,000$ and the remainder is on account$)$; Job $512$ was sold for $$62,000$ cash.

Calculate over or under applied overhead for the period

Prepare the adjusting entry for manufacturing overhead