Entries for Costs in a Job OrderCost System GIA Co. uses a job order cost system. The following data summarize the operations related to production for August: a. Materials purchased on account, $657,470. Materials requisitioned, $552,270, of which $71,800 was for general factory use. Factory labor used, $677,190, of which $128,670 was indirect. Other costs incurred on account were for factory overhead, $157,790; selling expenses, $243,260; and administrative expenses, $144,640. Prepaid expenses expired for factory overhead were $30,240; for selling expenses, $25,640; and for administrative expenses, $18,410. Depreciation of office building was $88,100; of office equipment, $44,710; and of factory equipment, $30,240. Factory overhead costs applied to jobs, $374,760. Jobs completed, $867,860. Cost of goods sold, $841,560. Required: Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Materials purchased on account, $657,470. Materials requisitioned, $552,270, of which $71,800 was for general factory use. Factory labor used, $677,190, of which $128,670 was indirect. Other costs incurred on account were for factory overhead, $157,790; selling expenses, $243,260; and administrative expenses, $144,640. Prepaid expenses expired for factory overhead were $30,240; for selling expenses, $25,640; and for administrative expenses, $18,410. Depreciation of office building was $88,100; of office equipment, $44,710; and of factory equipment, $30,240. Factory overhead costs applied to jobs, $374,760. Jobs completed, $867,860. Cost of goods sold, $841,560. Analyzing Manufacturing Cost Accounts Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for July: In addition, the following information is available: Materials and direct labor were applied to six jobs in July: Factory overhead is applied to each job at a rate of 140% of direct labor cost. The July 1 Work in Process balance consisted of two jobs, as follows: Customer jobs completed and units sold in July were as follows: Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter amounts as positive numbers. Materials Requisitions $ Work in Process Beginning Balance $ Direct Materials $ Direct Labor $ Factory overhead applied $ Completed jobs $ Cost of goods sold $ Indirect labor $ Determine the July 31 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances. Materials: $ Work in Process: $ Finished Goods: $ Factory Overhead: $ Contribution Margin, Break-Even Sales, Cqst-yolume-P rof it c h art, Margm of Safety, and Operating Leverage Soldner Health Care Products Inc. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2014. A summary report of these estimates is as follows: Prepare an estimated income statement for 2014. What is the expected contributipn margin ratio? Round to the nearest whole percent. Determine the break-even sales in units. units Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Percentage: (Round to the nearest whole percent.) Determine the operating leverage. Round to one decimal place. Activity-Based and Department Rate Product Costing and Product Cost Distortions Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: The activity-base usage quantities and units produced for the two products are shown below. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. If required, round your answers to two decimal places. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). If required, round your answers to two decimal places. Determine the activity, rates, assuming that the indirect labor is associated with activities rather than with the production departments. Determine the total and per-unit cost assigned to each product under activity-based costing. If required, round your answers to two decimal places. Entries for Costs in a Job OrderCost System GIA Co. uses a job order cost system. The following data summarize the operations related to production for August: a. Materials purchased on account, $657,470. Materials requisitioned, $552,270, of which $71,800 was for general factory use. Factory labor used, $677,190, of which $128,670 was indirect. Other costs incurred on account were for factory overhead, $157,790; selling expenses, $243,260; and administrative expenses, $144,640. Prepaid expenses expired for factory overhead were $30,240; for selling expenses, $25,640; and for administrative expenses, $18,410. Depreciation of office building was $88,100; of office equipment, $44,710; and of factory equipment, $30,240. Factory overhead costs applied to jobs, $374,760. Jobs completed, $867,860. Cost of goods sold, $841,560. Required: Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Materials purchased on account, $657,470. Materials requisitioned, $552,270, of which $71,800 was for general factory use. Factory labor used, $677,190, of which $128,670 was indirect. Other costs incurred on account were for factory overhead, $157,790; selling expenses, $243,260; and administrative expenses, $144,640. Prepaid expenses expired for factory overhead were $30,240; for selling expenses, $25,640; and for administrative expenses, $18,410. Depreciation of office building was $88,100; of office equipment, $44,710; and of factory equipment, $30,240. Factory overhead costs applied to jobs, $374,760. Jobs completed, $867,860. Cost of goods sold, $841,560. Analyzing Manufacturing Cost Accounts Big Wave Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for July: In addition, the following information is available: Materials and direct labor were applied to six jobs in July: Factory overhead is applied to each job at a rate of 140% of direct labor cost. The July 1 Work in Process balance consisted of two jobs, as follows: Customer jobs completed and units sold in July were as follows: Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter amounts as positive numbers. Materials Requisitions $ Work in Process Beginning Balance $ Direct Materials $ Direct Labor $ Factory overhead applied $ Completed jobs $ Cost of goods sold $ Indirect labor $ Determine the July 31 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances. Materials: $ Work in Process: $ Finished Goods: $ Factory Overhead: $ Contribution Margin, Break-Even Sales, Cqst-yolume-P rof it c h art, Margm of Safety, and Operating Leverage Soldner Health Care Products Inc. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2014. A summary report of these estimates is as follows: Prepare an estimated income statement for 2014. What is the expected contributipn margin ratio? Round to the nearest whole percent. Determine the break-even sales in units. units Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Percentage: (Round to the nearest whole percent.) Determine the operating leverage. Round to one decimal place. Activity-Based and Department Rate Product Costing and Product Cost Distortions Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: The activity-base usage quantities and units produced for the two products are shown below. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. If required, round your answers to two decimal places. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). If required, round your answers to two decimal places. Determine the activity, rates, assuming that the indirect labor is associated with activities rather than with the production departments. Determine the total and per-unit cost assigned to each product under activity-based costing. If required, round your answers to two decimal places