Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Baehr Company is a manufacturing company that uses a normal job-costing system for its production costs. Use the following information for November to answer the

Baehr Company is a manufacturing company that uses a normal job-costing system for its production costs. Use the following information for November to answer the next four questions.

Inventories November 1: Materials used for production: Raw materials $10,500 Job 50 $ 45,000 Work-in-process (Job No. 50) 54,000 Job 51 37,500 Finished goods 112,500 Job 52 25,500 Indirect materials 12,000 $120,000 Purchases of raw materials: $150,000 Factory direct labor hours: Factory labor costs: Job No. 50 3,500 Direct labor wages $51,000 Job No. 51 3,000 Indirect labor wages 15,000 Job No. 52 2,000 (4,000 hours) 8,500 Supervisory salaries 6,000 $72,000 Building occupancy costs (heat, light, Factory equipment costs: depreciation, etc.): Power $4,000 Factory facilities $6,500 Repairs and maintenance 1,500 Sales offices 1,500 Depreciation 1,500 Administrative offices 1,000 Other 1,000 $8,000 Additional Information: All direct factory labor workers are paid the same hourly rate of $6.00 per hour. The budgeted manufacturing overhead rate for the current year is $4.50 per direct factory labor hour. Jobs No. 50 and No. 51 were completed during November.

15. What was the actual manufacturing overhead incurred in November? a. $39,500 b. $41,500 c. $47,500 d. $38,250 e. $50,000

16. What is the total cost of Job No. 50? a. $81,750 b. $135,750 c. $66,000 d. $45,000 e. $120,000

17. What is the ending balance in Work-in-Process Inventory on November 30? a. $37,500 b. $25,500 c. $21,000 d. $46,500 e. $100,500

18. What is the total amount of manufacturing overhead allocated to jobs during November? a. $29,250 b. $38,250 c. $47,250 d. $56,250 e. $47,500

19. When direct materials that were bought and paid for in a previous period are placed into the production process, what is the effect on the income statement and the balance sheet?

Income Assets Liabilities Equity a. no effect no effect no effect no effect b. decrease decrease no effect decrease c. no effect decrease no effect decrease d. increase increase no effect increase

(BE DETAILED PLEASE)

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

Students also viewed these Accounting questions

Question

What were your most important educational experiences?

Answered: 1 week ago

Question

Which personal relationships influenced you the most?

Answered: 1 week ago