Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 2-7 (Algo) Job-Order Costing: Working Backwards (LO24.LO2-2, LO2-3) Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor hours

image text in transcribed
image text in transcribed
Exercise 2-7 (Algo) Job-Order Costing: Working Backwards (LO24.LO2-2, LO2-3) Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor hours as the location base. The company pays its direct laborers $13.00 per hour. During the year, the company started and completed only twojob-- Job Alpha, which used 64,200 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below Job Alpha Diret materials Direct labor Manufacturing overhead applied Total Jobcoat 31.079.900 Job omega Direct materials Direct labor Manufacturing overhead applied Total job cost $225,000 357,500 165,000 $ 747,500 Required: 1. Calculate the plantwide predetermined overhead rate. 2. Complete the job cost sheet for Job Alpha. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Exercise 3-5 (Algo) Journal Entries and T-accounts [LO3-1, LO3-2) Ch The Polaris Company uses a job-order costing system. The following transactions occurred in October 20:57 a. Raw materials purchased on account, $209,000 b. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials) c. Accrued direct labor cost of $48.000 and indirect labor cost of $20,000 d. Depreciation recorded on factory equipment, $105,000. e. Other manufacturing overhead costs accrued during October, $131,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine hour. A total of 76,200 machine-hours were used in October g. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods h. Jobs that had cost $448,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 32% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $34,000. Complete this question by entering your answ nswers in the tabs below. Required 1 Required 2

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

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall

4th Canadian Edition

0131971905, 978-0131971905

More Books

Students also viewed these Accounting questions

Question

Banks hold more liquid assets than most businesses do. Explain why.

Answered: 1 week ago

Question

Describe what a one-minute self-sell is and what it contains.

Answered: 1 week ago

Question

List and explain the steps in the negotiating process.

Answered: 1 week ago