Accounting 2120 Chapter 16-Job Order Costing Assignment 3 L Jounalizing Transactions, completing a job cost sheet; calculating overhead Instructions: Follow instructions in numbers 1 & 2. *"The job cost sheet is shown below. For #1 just name the sheet "Job 300 b. a Jounalize numbers 3-8 and 10-12; Number 9 just requires you to calculate the total cost of the job 1. Create a job cost sheet for Job 300 2. Estimated annual overhead costs: $122,850; Cost driver identified: Direct labor cost; estimated annual direct labor cost: $117,000; Calculate the pre-determined overhead rate 3. Purchased raw material on account S60,000 4. Incurred $28,000 in factory labor costs, of which $3000 was employer payroll taxes. 5. Actual OH costs were as follows: a Factory utilities: $2,500 b. Factory rent: $3,000 (prepaid) c. Factory insurance: $1650 (prepaid) d. Repairs: $800 (charge to accounts payable) e. Depreciation: $1,200 6. Requisitioned $25,000 of material; $21,000 was for Job 300 and the remainder was indirect material 7. Assigned $28,000 in factory labor costs; $20,000 was for Job 300; remainder was indirect labor 8. Calculate the amount of overhead to apply if total direct labor cost for the period equals $20,000 (journalize the transaction) 9. Calculate the cost of job 300 (which has been completed) 10. Transfer job 300 to finished goods 11. Job 300 was sold on account for $71,000 12. Calculate over or under applied overhead; prepare adjusting entry Direct Labor Direct Materials Man. Overhead Total Job Cost P17.1A (LO 1, 2, 3) Combat Fire, Inc. manufactures steel cylinders and nozzles for two raodcis ui tre extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home moidei is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemi- cal at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000 10,200)]. Estimated annual manufacturing overhead is $1,584,280. Thus, the predetermined overhead rate is $16.45 or (S1,584,280 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Estimated Use Estimated of Drivers by Use of Product Estimated Cost Cost Drivers Overhead Drivers Home Commercial Pounds 80,400 335,000 35,000 217,000 215,000 27,000 120,000 8,000 52,000 10,000 1,578 120,000 150,500 412.300 Machine hours Number of parts 165,000 15,500 3,680 215,000 51,000 52,580 837,500 $1.584,280 25,500 5,258 335,000 Number of tests Gallons Pounds i nga gint Instructions a. Under traditional product costing, compute the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product (similar to Illustration 17.3). a. Uni b. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). c. Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Include a computation of overhead cost per unit, rounding to the nearest cent.) d. Compute the total cost per unit for each product under ABC. Classify each of the activities as a value-added activity or a non-value-added activity c. Cos $1,0 d. Cos e. f. Comment on (1) the comparative overhead cost per unit for the two products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC. Assign ..leen hinh dainition television models: Accounting 2120 Chapter 16-Job Order Costing Assignment 3 L Jounalizing Transactions, completing a job cost sheet; calculating overhead Instructions: Follow instructions in numbers 1 & 2. *"The job cost sheet is shown below. For #1 just name the sheet "Job 300 b. a Jounalize numbers 3-8 and 10-12; Number 9 just requires you to calculate the total cost of the job 1. Create a job cost sheet for Job 300 2. Estimated annual overhead costs: $122,850; Cost driver identified: Direct labor cost; estimated annual direct labor cost: $117,000; Calculate the pre-determined overhead rate 3. Purchased raw material on account S60,000 4. Incurred $28,000 in factory labor costs, of which $3000 was employer payroll taxes. 5. Actual OH costs were as follows: a Factory utilities: $2,500 b. Factory rent: $3,000 (prepaid) c. Factory insurance: $1650 (prepaid) d. Repairs: $800 (charge to accounts payable) e. Depreciation: $1,200 6. Requisitioned $25,000 of material; $21,000 was for Job 300 and the remainder was indirect material 7. Assigned $28,000 in factory labor costs; $20,000 was for Job 300; remainder was indirect labor 8. Calculate the amount of overhead to apply if total direct labor cost for the period equals $20,000 (journalize the transaction) 9. Calculate the cost of job 300 (which has been completed) 10. Transfer job 300 to finished goods 11. Job 300 was sold on account for $71,000 12. Calculate over or under applied overhead; prepare adjusting entry Direct Labor Direct Materials Man. Overhead Total Job Cost P17.1A (LO 1, 2, 3) Combat Fire, Inc. manufactures steel cylinders and nozzles for two raodcis ui tre extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home moidei is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemi- cal at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000 10,200)]. Estimated annual manufacturing overhead is $1,584,280. Thus, the predetermined overhead rate is $16.45 or (S1,584,280 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows. Estimated Use Estimated of Drivers by Use of Product Estimated Cost Cost Drivers Overhead Drivers Home Commercial Pounds 80,400 335,000 35,000 217,000 215,000 27,000 120,000 8,000 52,000 10,000 1,578 120,000 150,500 412.300 Machine hours Number of parts 165,000 15,500 3,680 215,000 51,000 52,580 837,500 $1.584,280 25,500 5,258 335,000 Number of tests Gallons Pounds i nga gint Instructions a. Under traditional product costing, compute the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product (similar to Illustration 17.3). a. Uni b. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). c. Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Include a computation of overhead cost per unit, rounding to the nearest cent.) d. Compute the total cost per unit for each product under ABC. Classify each of the activities as a value-added activity or a non-value-added activity c. Cos $1,0 d. Cos e. f. Comment on (1) the comparative overhead cost per unit for the two products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC. Assign ..leen hinh dainition television models