Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 1 Devona Company's fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first

image text in transcribed
image text in transcribed
Exercise 1 Devona Company's fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year: RAW MATERIALS INVENTORY July 1 Beginning balance 19,000 July 31 Requisitions (A) Purchases 90,400 July 31 Ending balance (B) July 31 Jobs completed (F) July 1 July 31 July 31 July 31 July 31 Beginning balance Direct Materials Direct Labor Applied Overhead Ending balance WORK IN PROCESS INVENTORY July 31 75,000 (D) (E) (G) Cost of Goods Sold J) July 1 July 31 July 31 Beginning balance Completed Jobs Ending balance FINISHED GOODS INVENTORY (H) July 31 (0) (K) FACTORY LABOR (4) July 31 Wages Assigned July 31 Factory wages (M) 91,000 July 31 July 31 July 31 Indirect Materials Indirect Labor Other Overhead MANUFACTURING OVERHEAD 8,900 July 31 Overhead Applied 16,000 (N) Other Data: 1. On July 1, two jobs were in process: Job No. 4085 and Job No. 4086, with costs of $17,000 and $8,200, respectively. 2. During July, Job Nos. 4087,4088, and 4089 were started. On July 31, only Job No. 4089 was unfinished. This job had charges for direct materials $2,000 and direct labor $1,500, plus manufacturing overhead. 3. On July 1, Job No. 4084, costing $135,000, was in the finished goods warehouse. On July 31, Job No. 4088, costing $143,000, was in finished goods. 4. Manufacturing overhead was applied at the rate of 130% of direct labor cost. Overhead was $3,000 underapplied in July. REQUIRED: Indicate the amount pertaining to each of the above letters. (Show your calculations). Exercise 2 On June 1, two jobs were in process at McHale Painters, Inc. Details of the jobs follow: Direct Direct Job No. Materials Labor A-15 174 64 A - 38 32 84 Materials inventory on June 1 totaled $920, and $116 in materials were purchased during the month. Indirect materials of $16 were withdrawn from materials inventory. On June 1, finished goods inventory consisted of two jobs, Job A-07, costing $392 and Job A-21 costing $158. Both of these jobs were transferred to Cost of Goods Sold during the month. Also during June, Jobs A-15 and A-38 were completed. To complete Job A-15 required an additional $68 in direct labor. The completion costs for Job A-38 included $108 in direct materials and $200 in direct labor. Job A-40 was started during the period but was not finished. A total of $314 of direct materials was used (excluding the $16 indirect materials) during the period, and total direct labor costs during the month amounted to $408. Overhead has been estimated at 150% of direct labor costs, and this relation has been the same for the past few years. Required: 1. Compute the total cost of Job A-15? 2. Compute the total cost of Job A-38? 3. Compute the balance of Materials Control at June 30? 4. Compute the balance of Work in process control inventory at June 30 5. Compute the balance of Finished goods inventory at June 30

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data Analytics Using Microsoft Excel With Accounting And Finance Datasets Version 2.0

Authors: Joseph M. Manzo

1st Edition

1453395210, 9781453395219

More Books

Students also viewed these Accounting questions

Question

Explain how to handle conflict effectively.

Answered: 1 week ago

Question

Y (north) L X(east) UB Exercise 8.12

Answered: 1 week ago

Question

Understand the different approaches to job design. page 184

Answered: 1 week ago