Question
Hi, I have been working on these two questions for the last two hours and am at my wit's end. I have tried some 30
Hi, I have been working on these two questions for the last two hours and am at my wit's end. I have tried some 30 answers, all wrong. I hope you can help.
Job 3827 was started and completed in 2017. The job required 1,000 machine hours, 400 direct labor hours, and $80,000 in direct materials to complete. What was the total cost of this job? Using Crane's 80% markup, what sales price would be charged for this airplane? (Round answers to 0 decimal places, e.g. 5,275.)
At the end of 2016, Crane's accountants developed the following expectations for 2017 based on the marketing department's sales forecast:
Budgeted overhead cost $1,121,000
Estimated machine hours 54,000
Estimated direct labor hours 11,000
Estimated direct materials cost $1,510,000
Crane's inventory count, completed on December 31, 2016, revealed the following ending inventory balances:
Raw Materials Inventory $251,000
Work in Process Inventory $626,000
Finished Goods Inventory $2,240,000
Total Direct Labor: 163125
Additional information about Crane's operations in 2017 includes the following:
Raw materials purchases for the year amounted to $1,945,000. All materials were purchased on account.
The company used $1,870,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials.
Crane applied overhead to Work in Process Inventory based on direct materials cost.
Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory.
Crane uses a markup of 80% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account.
(Note: This transaction requires two journal entries.)
I'll keep trying. Thanks. Ken
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