Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help with this accounting ! :( Here is the questions and then the working papers ROBLEM 16 See calendar for due date. Use the working

image text in transcribedimage text in transcribedHelp with this accounting ! :(

Here is the questions and then the working papers

ROBLEM 16 See calendar for due date. Use the working papers for provided. Dorman Products Company uses a job order cost system and applies overhead to production on the basis of direct labor cost. On January 1, 2018, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,000; direct labor $15,000; and manufacturing overhead $25,000. Job No. 49 had been completed at a cost of $100,000 and was part of finished goods inventory. There was a $35,000 balance in the Raw Materials inventory account. During the month of January, the company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $120,000 and $150,000 respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $270,000 on account. 2. Incurred factory labor costs of $61,000. Of this amount $11,000 is related to employer payroll taxes 3. Incurred manufacturing overhead costs as follows: indirect materials S5,000; indirect labor $17,000; depreciation expense $22,000 and accounts payable $9,000 (for utilities and repairs) 4. Assigned direct materials and direct labor to jobs as follows Job No. 50 Direct Materials Direct Labor S 8,000 29,000 32,000 $ 7,000 16,000 20,000 52 5. The company uses direct labor cost as the activity base to assign overhead. Instructions (a) Calculate the predetermined overhead rate for the year 2018, assuming Dorman Products Company Manufacturing estimates total manufacturing overhead costs of $863,600 and direct labor costs of $680,000. d. and e.) and the manufacturing overhead costs incurred during the month of January. manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the (b) Complete the job cost sheets for Jobs 50, 51, and 52. (This can be done also when you get to parts (c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, (d) Prepare the journal entries to record the assignment of direct materials, direct labor, and overhead rate calculated in (a). Post all costs to the job cost sheets as necessary (e) Prepare the journal entry to record the completion of Job 50 and Job 51 during the month.by using the total from the job cost sheets that were completed during the month. (f) Prepare the journal entries to record the sale of Job 49 and Job 50 during the month. (g) What is the balance in the Work in Process Inventory account at the end of the month? What does this balance consist of? (For example which Job and what specific costs.) (h) What is the amount of over- or underapplied overhead for the month? A B 4 7 8 1 Calculate the predetermined overhead rate for the vear 2 10 3 11 4 12 5 13 14 (b), (d), and (e) 4 Job Cost Sheets 16JOB NO. 50 17 JOB NO. 51 Manu- facturing Overhead Manu- facturing Overhead Direct Labor Direct Materials Direct Labor Direct Materials 19 Date 20Jan. 1 21 Date 15000 30000 25000 23 24 25Cost of completed job 26 27 28 29 30 Cost of completed job 31 32 33 JOB NO. 52 34 35 36 Date 37 38 39 Manu- facturing Overhead Direct Materials Direct Labor

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

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions