Question
P2-1C Computethemanufacturingoverheadrateandunder-oroverappliedoverheadAriesManufacturingusesajobordercostsystemandappliesoverheadtoproductiononthebasisofdirectlaborhours.onlyjobinprocess.ThecostsincurredpriortoJanuary1onthisjobwereasfollows:directmaterials$10,000;directlabor$6,000;andmanufacturingoverhead$9,000.JobNo.23hadbeencompletedatacostof$45,000andwaspartoffinishedgoodsinventory.Therewasa$5,000balanceintheRawMaterialsInventoryaccount.DuringthemonthofJanuary,thecompanybeganproductiononJobs26and27,andcompletedJobs25and26.Jobs23and25weresoldonaccountduringthemonthfor$65,000and$74,000,respectively.Thefollowingadditionaleventsoccurredduringthemonth.1.Purchasedadditionalrawmaterialsof$46,000onaccount.2.Incurredfactorylaborcostsof$31,900.Ofthisamount$7,000relatedtoemployerpayrolltaxes.3.Incurredmanufacturingoverheadcostsasfollows:indirectmaterials$10,000;indi-rectlabor$7,500;depreciationexpense$12,000;andvariousothermanufacturingoverheadcostsonaccount$11,000.4.Assigneddirectmaterialsanddirectlabortojobsasfollows. JobNo.DirectMaterialsDirectLabor 25$5,000$3,0002615,00012,0002713,0009,9005.Thecompanyusesdirectlaborhoursastheactivitybasetoassignoverhead.Directlaborhoursincurredoneachjobwereasfollows:JobNo.25,200;JobNo.26,800;andJobNo.27,660. Instructions (a)Calculatethepredeterminedoverheadratefortheyear2014,assumingAriesManufacturingestimatestotalmanufacturingoverheadcostsof$450,000,directlaborcostsof$300,000,anddirectlaborhoursof20,000fortheyear.(b)OpenjobcostsheetsforJobs25,26,and27.EntertheJanuary1balancesonthejobcostsheetforJobNo.25.(c)Inassigningmanufacturingover-headcosts,usetheoverheadratecalculatedin(a).Postallcoststothejobcostsheetsasnecessary.(d)Totalthejobcostsheetsforanyjob(s)completedduringthemonth.(e)WhatisthebalanceintheWorkinProcessInventoryaccountattheendofthemonth?Whatdoesthisbalanceconsistof?(f)Whatistheamountofoverorunderappliedoverhead?(a)Computethemanufacturingoverheadratefortheyear.EstimatedtotaloverheadcostValueEstimatedlaborhoursValueOverheadrate?(b) JobCostSheetsJobNo.25DateDirectMaterialsDirectLaborManufacturingOverheadBeg. ValueValueValue Jan. ValueValueValue??? CostofcompletedjobDirectmaterialsDirectlaborManufacturingoverheadTotalcost?JobCostSheetsJobNo.26DateDirectMaterialsDirectLaborManufacturingOverheadBeg. ValueValueValue Jan. ValueValueValue??? CostofcompletedjobDirectmaterialsDirectlaborManufacturingoverheadTotalcost?JobCostSheetsJobNo.27DateDirectMaterialsDirectLaborManufacturingOverheadBeg. ValueValueValue Jan. ValueValueValue??? CostofcompletedjobDirectmaterialsDirectlaborManufacturingoverheadTotalcost?(f)ManufacturingOverheadActualApplied ValueValue
P2-1CComputethemanufacturingoverheadrateandunder-oroverappliedoverheadAriesManufacturingusesajobordercostsystemandappliesoverheadtoproductiononthebasisofdirectlaborhours.onlyjobinprocess.ThecostsincurredpriortoJanuary1onthisjobwereasfollows:directmaterials$10,000;directlabor$6,000;andmanufacturingoverhead$9,000.JobNo.23hadbeencompletedatacostof$45,000andwaspartoffinishedgoodsinventory.Therewasa$5,000balanceintheRawMaterialsInventoryaccount.DuringthemonthofJanuary,thecompanybeganproductiononJobs26and27,andcompletedJobs25and26.Jobs23and25weresoldonaccountduringthemonthfor$65,000and$74,000,respectively.Thefollowingadditionaleventsoccurredduringthemonth.1.Purchasedadditionalrawmaterialsof$46,000onaccount.2.Incurredfactorylaborcostsof$31,900.Ofthisamount$7,000relatedtoemployerpayrolltaxes.3.Incurredmanufacturingoverheadcostsasfollows:indirectmaterials$10,000;indi-rectlabor$7,500;depreciationexpense$12,000;andvariousothermanufacturingoverheadcostsonaccount$11,000.4.Assigneddirectmaterialsanddirectlabortojobsasfollows.JobNo.DirectMaterialsDirectLabor25$5,000$3,0002615,00012,0002713,0009,9005.Thecompanyusesdirectlaborhoursastheactivitybasetoassignoverhead.Directlaborhoursincurredoneachjobwereasfollows:JobNo.25,200;JobNo.26,800;andJobNo.27,660.Instructions(a)Calculatethepredeterminedoverheadratefortheyear2014,assumingAriesManufacturingestimatestotalmanufacturingoverheadcostsof$450,000,directlaborcostsof$300,000,anddirectlaborhoursof20,000fortheyear.(b)OpenjobcostsheetsforJobs25,26,and27.EntertheJanuary1balancesonthejobcostsheetforJobNo.25.(c)Inassigningmanufacturingover-headcosts,usetheoverheadratecalculatedin(a).Postallcoststothejobcostsheetsasnecessary.(d)Totalthejobcostsheetsforanyjob(s)completedduringthemonth.(e)WhatisthebalanceintheWorkinProcessInventoryaccountattheendofthemonth?Whatdoesthisbalanceconsistof?(f)Whatistheamountofoverorunderappliedoverhead?(a)Computethemanufacturingoverheadratefortheyear.EstimatedtotaloverheadcostValueEstimatedlaborhoursValueOverheadrate?(b)JobCostSheetsJobNo.25DateDirectMaterialsDirectLaborManufacturingOverheadBeg.ValueValueValueJan.ValueValueValue???CostofcompletedjobDirectmaterialsDirectlaborManufacturingoverheadTotalcost?JobCostSheetsJobNo.26DateDirectMaterialsDirectLaborManufacturingOverheadBeg.ValueValueValueJan.ValueValueValue???CostofcompletedjobDirectmaterialsDirectlaborManufacturingoverheadTotalcost?JobCostSheetsJobNo.27DateDirectMaterialsDirectLaborManufacturingOverheadBeg.ValueValueValueJan.ValueValueValue???CostofcompletedjobDirectmaterialsDirectlaborManufacturingoverheadTotalcost?(f)ManufacturingOverheadActualAppliedValueValue
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
8th Canadian Edition
ISBN: 134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736
