Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELP PLEASE LO2, Job Costing with Predetermined Overhead Rate SnoBlo Company manufactures a variety of gasoline-powered snow blowers for discount hardware department stores. SnoBlo uses

HELP PLEASE image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
LO2, Job Costing with Predetermined Overhead Rate SnoBlo Company manufactures a variety of gasoline-powered snow blowers for discount hardware department stores. SnoBlo uses a job cost system and treats each customer's order as a separate job. The primary snow blower components (motors, chassis, and wheels) are purchased from three different suppliers under long-term contracts that call for the direct delivery of raw materials to the production floor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the delivery date for motors and chassis; the scheduled date production is to be completed is specified as the delivery date for the wheels. As a consequence, there are no raw materials inventories; raw materials are charged directly to Work-in-Process upon receipt. Upon completion, goods are shipped directly to customers rather than transferred to finished goods inventory. At the beginning of July SnoBlo had the following work-in-process inventories P5-37. . . $23,000 Job 365 Job 366 Job 367.. Job 368 15,400 16,000 8,500 Total . During July, the following activities took place: Started Jobs 369, 370, and 371 Ordered arld received the following raw materials for specified jobs: Job Motors Chassis Wheels Total $ 0 $0 800 800 0 1,200 1,200 1,600 1,600 14,000 5,000 1,000 20,000 900 13,400 367... 0 0 0 369. . . 370 9,000 3,500 366 15,400 16,000 8,500 368 $62,900 During July, the following activities took place: Started Jobs 369, 370, and 371. Ordered and received the following raw materials for specified jobs: Job 366 Motors Chassis Wheels Total 367 369 371 $ 0 $ 0 S 800 800 0 1,200 1,200 0 1,600 ,600 4,000 5,000 1,000 20,000 900 13,400 0 12,300 0 0 9,000 8,500 3,500 3,800 Incurred July manufacturing payroll: Direct labor . $ 500 3,300 3,400 4,160 1,300 2,620 1,500 16,780 3,436 ..._ . _ . . . Job 366 Job 367. Job 368.. . . . Job 369.. Job 370.... Job 371. Total Total Incurred additional manufacturing overhead costs for July: 2.800 Manufacturing supplies purchased on account and used.. Depreciation on factory fixed assets 6,000 ....5,100 $13,900 Applied manufacturing overhead using a predetermined rate based on predicted an $190,000 and predicted annual direct labor of $200,000 . Applied manufacturing overhead using a predetermined rate based on predicted annual overhead o $190,000 and predicted annual direct labor of $200,000. Completed and shipped Jobs 365 through 370. Required Prepare a complete analysis of all activity in Work-in-Process. Be sure to show the beginning and en ing balances, all increases and decreases, and label each item. Provide support information on decreas with job cost sheets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions