mas qu 5) po 350 K For a company that manufactures tennis rackets, the average cost per racket is found to be C = Use the differential to approximate the change in average cost per racket if production is (A) increased from 15 per hour to 19 per hour and (B) increased from 45 per hour to 49 per hour. X 1 +4+ x for x 21, where x is the number of rackets produced per hour.
REQUIRED 3. Prepare a journal entry for item (g). 4. If 10,000 of the parts for this job are shipped to the customer in September, how much of this job's cost will be included in cost of goods sold for September (you must first figure out the unit product cost, then figure the amount included in COGS). LEARNING CASE Street Company manufactures various machined parts for customers. They use a job order costing system and apply overhead costs to jobs based on machine hours used. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,800,000 in Manufacturing Overhead cost at an estimated activity level of 240,000 machine hours used. Street Company spent the entire month of August working on a large order for 16,000 parts for a customer. The company had no WIP Inventory at the beginning of August. Cost data relating to August is as follows: a) Raw materials purchased on account: $325,000. b) Raw materials used in production: $290,000.80% of this amount was for direct materials, while 20% of this amount was for indirect materials. c) Labor cost accrued by the factory: $180,000. One-third of this cost was for direct labor, while two-thirds of this cost was for indirect labor. d) Depreciation recorded on factory equipment: $75,000. e) Other MOH costs incurred on account: $62,000. f) MOH cost was applied to production on the basis of 15,000 machine hours used during the month. REQUIRED 1. Prepare journal entries to record items (a) through (f). 2. Prepare T-accounts for MOH and WIP Inventory by posting the relevant journal entries from above to these T-accounts. Note whether MOH was over applied or under applied. Additional Information g) The completed job for 16,000 parts was moved into the Finished Goods warehouse on August 31 . Manufacturing Overhead WIP Inventory For a company that manufactures tecris rackets, the average cost per racket is found to be C=x350+431x for x1, where x s the number of rackets preduchd per hour Use the differential to appresumate the charge in merage cost per racket epeoducton is (A) increased fiom 15 per hou to t9 per hour and (B) increased from 45 per hour to 49 per hour. \begin{tabular}{|l|l|l|l|} \hline Reference & Account & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} REQUIRED 3. Prepare a journal entry for item (g). 4. If 10,000 of the parts for this job are shipped to the customer in September, how much of this job's cost will be included in cost of goods sold for September (you must first figure out the unit product cost, then figure the amount included in COGS). LEARNING CASE Street Company manufactures various machined parts for customers. They use a job order costing system and apply overhead costs to jobs based on machine hours used. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,800,000 in Manufacturing Overhead cost at an estimated activity level of 240,000 machine hours used. Street Company spent the entire month of August working on a large order for 16,000 parts for a customer. The company had no WIP Inventory at the beginning of August. Cost data relating to August is as follows: a) Raw materials purchased on account: $325,000. b) Raw materials used in production: $290,000.80% of this amount was for direct materials, while 20% of this amount was for indirect materials. c) Labor cost accrued by the factory: $180,000. One-third of this cost was for direct labor, while two-thirds of this cost was for indirect labor. d) Depreciation recorded on factory equipment: $75,000. e) Other MOH costs incurred on account: $62,000. f) MOH cost was applied to production on the basis of 15,000 machine hours used during the month. REQUIRED 1. Prepare journal entries to record items (a) through (f). 2. Prepare T-accounts for MOH and WIP Inventory by posting the relevant journal entries from above to these T-accounts. Note whether MOH was over applied or under applied. Additional Information g) The completed job for 16,000 parts was moved into the Finished Goods warehouse on August 31 . Manufacturing Overhead WIP Inventory For a company that manufactures tecris rackets, the average cost per racket is found to be C=x350+431x for x1, where x s the number of rackets preduchd per hour Use the differential to appresumate the charge in merage cost per racket epeoducton is (A) increased fiom 15 per hou to t9 per hour and (B) increased from 45 per hour to 49 per hour. \begin{tabular}{|l|l|l|l|} \hline Reference & Account & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}
