Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking for some assistance with 2-8. I'm looking for full work of the problem In June, Sierra Company worked only on Job No. 100 and

Looking for some assistance with 2-8. I'm looking for full work of the problem

image text in transcribedimage text in transcribed

In June, Sierra Company worked only on Job No. 100 and completed it on June 30. There were no prior costs accumulated on Job No. 100 before June l. During the month, the company purchased and used $ I (),800 of direct materials, used 2,000 machine-hours, and incurred $ 19,200 ofdirect labor costs. Assuming manufacturing overhead is applied at the rate of $ 12 per machine- hour, what is the total cost of Job No. 100? Prepare journal entries to assign the materials, labor, and manufacturing overhead costs to production and to record the transfer of Job No. 100 to Finished Goods Inventory. At the end of the second week in March, Job No. 710 has an accumulated total cost of $37,800. In the third week, $9,000 of direct materials were used on Job 710, 300 hours of direct labor were charged to the job at $40 per hour, and manufacturing overhead was applied on the basis of $40 per machine-hour for overhead. Job No. 710 was the only job worked on in the third week. It was also completed in the third week. Job No. 710 used 160 machine-hours during the third week in March. Compute the cost of Job No. 710, and give the journal entry required to record its completion and transfer to Finished Goods Inventory. Different companies use different bases in computing their predetermined overhead rates. From the following estimated data, compute the predetermined rate to be used by each company: Machine-hours Direct labor-hours Direct labor cost Manufacturing overhead cost Paper 100,000 50,000 $800,000 $400,000 Basis for determining predetermined overhead rate: Company Paper Rock Scissors Company Rock 210,000 48,000 $735,000 $432,000 Basis Direct labor cost Direct labor-hours Machine-hours Refer to Exercise 26. Assume the actual hours and cost data were: Actual Manufacturing overhead Direct labor cost Direct labor-hours Machine-hours Paper $450,000 $850,000 45,000 105,000 Rock $400,000 $700,000 46,000 200,000 Scissors 125,000 39,000 $410,000 $375,000 Scissors $375,000 $400,000 38,000 130,000 a. Compute overapplied or underapplied overhead for each company. b. Prepare journal entries to transfer overapplied or underapplied overhead to Cost of Goods Sold for each company. Ernest Peat Consultants uses a job cost system and had the following activity during December: 1. There were no jobs in beginning Work in Process or Finished Goods Inventory. 2. Three jobs were started: Nos. 222, 223, and 224. Job No. 222 was completed and the customer was billed for $10,000 on account. Job No. 223 was completed and in Finished Goods Inventory awaiting billing to the client at the end of the month. Job No. 224 was still in process at month-end. Exercise 24 Compute job costs; prepare journal entries to record production activities (L.O. 7) Exercise 25 Compute job costs; prepare journal entries to record production activities (L.O. 7) Exercise 2-6 Compute overhead rates (L.O. 8) Exercise 2-7 Prepare journal entry to transfer underapplied or overapplied overhead to Cost of Goods Sold (L.O. 7, 8) Exercise 28 Demonstrate job cost flows in a service organization (L.O. 7)

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

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

Students also viewed these Accounting questions

Question

Alcohol and drug use among student athletes

Answered: 1 week ago