Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs On January 1, 2010, Job No 50 was the only job in process The costs incurred prior to January 1 on this job were as follows direct materials $27,800, direct labor $16,680, and manufacturing overhead $22,240 As of January 1, Job No 49 had been completed at a cost of $125,100 and was part of finished goods inventory There was a $20,850 balance in the Raw Materials Inventory account During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51 Jobs 49 and 50 were also sold on account during the month for $169,580 and $219,620, respectively The following additional events occurred during the month Purchased additional raw materials of $125,100 on account Incurred factory labor costs of $90,350 Of this amount $22,240 related to employer payroll taxes Incurred manufacturing overhead costs as follows indirect materials $23,630 indirect labor $20,850 depreciation expense $26,410, and various other manufacturing overhead costs on account $27,800 Assigned direct materials and direct labor to jobs as follows Job No Direct materials Direct Labor 50 $13900 $6950 51 54210 34750 52 41700 27800 Job No Direct Materials Direct Labor 50 $13,900 $ 6,950 51 54,210 34,750 52 41,700 27,800 Calculate the predetermined overhead rate for 2010, assuming Garcia Manufacturing estimates total manufacturing overhead costs of $1,459,500, direct labor costs of $973,000, and direct labor hours of 27,800 for the year Answer 150 Open job cost sheets for Jobs 50, 51, and 52 Enter the January 1 balances on the job cost sheet for Job No 50 Post all costs to the job cost sheets as necessary Total the job cost sheets for any job(s) completed during the month Prepare the journal entry (or entries) to record the completion of any job(s) during the month Prepare the journal entry (or entries) to record the sale of any job(s) during the month Possible answer Cost of goods sold Finished goods inventory Accounts Receivable 389200 Sales 389200 What is the balance in the Finished Goods Inventory account at the end of the month What does this balance consist of What is the amount of over or underapplied overhead

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Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job

Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $27,800, direct labor $16,680, and manufacturing overhead $22,240. As of January 1, Job No. 49 had been completed at a cost of $125,100 and was part of finished goods inventory. There was a $20,850 balance in the Raw Materials Inventory account. During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $169,580 and $219,620, respectively. The following additional events occurred during the month.

Purchased additional raw materials of $125,100 on account.
Incurred factory labor costs of $90,350. Of this amount $22,240 related to employer payroll taxes.
Incurred manufacturing overhead costs as follows: indirect materials $23,630; indirect labor $20,850; depreciation expense $26,410, and various other manufacturing overhead costs on account $27,800.
Assigned direct materials and direct labor to jobs as follows. Job No. Direct materials Direct Labor 50 $13900 $6950 51 54210 34750 52 41700 27800

Job No. Direct Materials Direct Labor

50 $13,900 $ 6,950

51 54,210 34,750

52 41,700 27,800

Calculate the predetermined overhead rate for 2010, assuming Garcia Manufacturing estimates total manufacturing overhead costs of $1,459,500, direct labor costs of $973,000, and direct labor hours of 27,800 for the year.

Answer: 150% ?

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50. Post all costs to the job cost sheets as necessary. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.

Prepare the journal entry (or entries) to record the sale of any job(s) during the month.

Possible answer:

Cost of goods sold

Finished goods inventory

Accounts Receivable 389200

Sales 389200

What is the balance in the Finished Goods Inventory account at the end of the month?

What does this balance consist of?

What is the amount of over- or underapplied overhead?