part C)
Coronado Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 24,000, direct labor $ 14,400, and manufacturing overhead $ 19,200. As of January 1, Job 49 had been completed at a cost of $ 108,000 and was part of finished goods inventory. There was a $ 18,000 balance in the Raw Materials Inventory account. During the month of January, Coronado Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. 1. Purchased additional raw materials of $ 108,000 on account. 2. Incurred factory labor costs of $ 84,000. 3. Incurred manufacturing overhead costs as follows: indirect materials $ 20,400; indirect labor $ 24,000; depreciation expense on equipment $ 14,400; and various other manufacturing overhead costs on account $ 19,200. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor $ 12,000 46,800 $ 6,000 30,000 24,000 36,000 Your answer is correct. Calculate the predetermined overhead rate for 2020, assuming Coronado Company estimates total manufacturing overhead costs of $1,008,000, direct labor costs of $ 840,000, and direct labor hours of 24,000 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predetermined overhead rate 120 % Your answer is correct. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Job No. 50 Date Direct Labor Manufacturing Overhead Direct Materials 24000 Beg, $ 14400 $ 19200 Jan. 12000 6000 7200 36000 $ 20400 26400 Cost of completed job Direct materials 36000 Direct labor 20400 Manufacturing overhead 26400 Total cost 82800 Job No. 51 Date Direct Materials 46800 46800 Jan. Manufacturing Overhead $ 36000 Direct Labor 30000 30000 $ $ 36000 Cost of completed job Cost of completed job Direct materials 46800 Direct labor 30000 Manufacturing overhead 36000 Total cost 112800 Job No.52 Date Direct Materials Manufacturing Overhead Direct Labor 24000 Jan. $ 36000 $ 28800 eTextbook and Media Attempts: 2 of 3 used (c)-(4) Record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January Record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary. le) Total the job cost sheets for any job(s) completed during the month. Record the completion of any job(s) during the month. (f) Record the sale of any job(s) during the month. (f) Record the sale of any job(s) during the month. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Manufacturing Costs Fit Work in Process Inventory Raw Materials Inventory Manufacturing Overhead Factory Labor (c) Purchase raw materials Incurred factory labor Factory depreciation Other overhead costs Indirect materials Indirect labor (d) Direct materials Direct labor Assigned overhead le) Jobs completed (f) Jobs sold (f) Record the sale of any job(s) during the month. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Manufacturing Costs Fit Work in Process Inventory Raw Materials Inventory Manufacturing Overhead Factory Labor (c) Purchase raw materials Incurred factory labor Factory depreciation Other overhead costs Indirect materials Indirect labor (d) Direct materials Direct labor Assigned overhead le) Jobs completed (f) Jobs sold
