Coronado Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarters production. 1. Materials purchased on account $197,100, and factory wages incurred $93,300. 2. Materials requisitioned and factory labor used by job: Job Number Materials Factory Labor A20 $37,840 $19,000 A21 44,620 23,700 A22 36,700 15,700 A23 40,370 26,500 General factory use 5,270 8,400 $164,800 $93,300 3. Manufacturing overhead costs incurred on account $52,200. 4. Depreciation on factory equipment $16,750. 5. Depreciation on the companys office building was $15,000. 6. Manufacturing overhead rate is 86% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23.
Exercise 15-08 (Video) Coronado Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. Materials purchased on account $197,100, and factory wages incurred $93,300. 2. Materials requisitioned and factory labor used by job: Job Number Materials A20 A21 A22 $37,840 44,620 36,700 40,370 5,270 Factory Labor $19.000 23,700 15,700 26,500 8,400 $93,300 A23 General factory use $164,800 3. Manufacturing overhead costs incurred on account $52,200. 4. Depreciation on factory equipment $16,750. 5. Depreciation on the company's office building was $15,000. 6. Manufacturing overhead rate is 86% of direct labor cost. 7. Jobs completed during the quarter: A20, A21, and A23. Prepare a schedule showing the individual cost elements and total cost for each job in item 7. Direct Direct Manufacturing Job Materials Labor Overhead Total A20 $ $ A21 A23 $ Prepare entries to record the operations summarized above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (1) Raw Materials Inventory Accounts Payable (To record materials purchases) Factory Labor Factory Wages Payable (To record factory wages) (2) Work in Process Inventory Manufacturing Overhead Raw Materials Inventory (To record materials put into production) Work in Process Inventory Manufacturing Overhead Factory Labor Prepare encries to the operations summarized above. tities are atically indented when amount Debit Credit No. Account Titles and Explanation (1) Raw Materials Inventory Accounts Payable (To record materials purchases) Factory Labor Factory Wages Payable (To record factory wages) (2) Work in Process Inventory Manufacturing Overhead Raw Materials Inventory (To record materials put into production) Work in Process Inventory Manufacturing Overhead Factory Labor (To record labor put into production) (3) Manufacturing Overhead Accounts Payable (4) Manufacturing Overhead Accumulated Depreciation Equipment (5) Depreciation Expense Accumulated Depreciation-Buildings (6) Work in Process Inventory Manufacturing Overhead (7) Finished Goods Inventory Work in Process Inventory Exercise 15-12 Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November Coronado Inc. Sunland Inc. Bonita Inc. Direct materials $710 5500 $230 Auditor labor costs $5,500 $7,700 $3,475 Auditor hours 76 91 49 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $57 per auditor hour. The Coronado job is the only incomplete job at the end of November. Actual overhead for the month was $12,600. (a) Determine the cost of each job. Cost Coronado $ Sunland Bonita $ (6) Indicate the balance of the Service Contracts in Process account at the end of November Balance in service contracts in process account s (c) Calculate the ending balance of the Operating Overhead account for November Balance in operating overhead account $
