Please complete every question demonstrated in the images below and explain answers please. This is a study guide for managerial accounting and this was all the information provided for the whole assignment. Thank you!
6. Cards by Shannon allocates factory overhead based upon hours used by a piece of equipment. At the beginning of the period, the company estimates factory overhead to be $25,000 and expects the equipment to be used for 4,000 hours. During the period Job 22 requires 1,900 hours of use of the equipment, Job 23 requires 1,700 hours, and Job 24 requires 100 hours. As of March 31, actual indirect costs include: $4,000 for indirect materials, $9, 100 for indirect labor, $6,000 for utilities, and $5,200 for equipment depreciation. a. Prepare the journal entry to record the costs considered factory overhead. b. Calculate the predetermined factory overhead rate. c. Prepare the journal entry required to apply the factory overhead to the jobs at the end of the month. 7. Is the factory overhead from Exercise 6 overapplied or underapplied? If Cards by Shannon has a March 31 fiscal year-end, prepare the journal entry required to dispose of the balance in Factory Overhead. 8. Cards by Shannon completed Job 22 on April 5 and Job 23 on April 6. Use the information in Exercises 4-8 to prepare the journal entries required to transfer the jobs. Job 22 also incurred $7,900 of direct materials and $1,000 of direct labor costs, and Job 23 incurred $9,000 of direct materials and $900 of direct labor costs previously. 9. On June 12, 2015, the Raw Materials account has a balance of $350. Michael's Camping Supply receives the following: materials requisition for Job 81 for $120, Receiving Report No. 99 for $790, Receiving Report No. 100 for $900, and materials requisition for Job 83 for $185. Prepare the journal entries to record the transactions if the company pays for the materials on credit. Also determine the balance of Raw Materials at the end of the day. 10. During the month of the June, employee time tickets at Michael's Camping Supply provide the following information: 700 hours for Job 81, 675 hours for Job 82, and 500 hours for Job 83. Workers are paid $9 for every hour worked. Prepare the journal entries required as of the end of the month.of June: $5,000 for indirect materials, $7,000 for indirect labor, $4, 400 for factory utilities, and $1,200 for factory depreciation. At the beginning of the month, the company expected to incur $20,000 in factory overhead, which would be allocated based upon the expected 2,000 direct labor hours to be worked. a. Prepare the journal entry required to record the costs considered to be factory overhead. b. Calculate the predetermined factory overhead rate. C. Prepare the journal entry to allocate the overhead to the jobs at the end of the month using the direct labor hours given in Exercise 10. 12. Throughout the year, Factory Overhead at Michael's Camping Supply had the following activities: applied costs of $90,500 and actual costs of $88, 100 previous to the month of June. Use the information in Exercise 11 to determine if the factory overhead was underapplied or overapplied as of the June 30 fiscal year-end. Also, prepare the journal entry required to account for the balance. 13. On July 10, Michael's Camping Supply completed Jobs 81 and 82 discussed in Exercises 9-12. Job 81 previously incurred costs of $4,000 for direct materials and $2,000 for direct labor. Job 82 previously incurred costs of $5,750 for direct materials and $1, 100 for direct labor. Prepare the journal entry to record the completion of these products. 14. On January 7, 2015, the materials department of Deacon Corporation received the following items: Receiving Report No. 40 for $1,400, materials requisition for Job 70 for $400, and materials requisition for Job 71 for $230. Prepare the journal entries to record the transactions if the company will pay for the materials in the next month. 15. During the month of January, employee time tickets gave the following information: 500 hours worked on Job 70 and 300 hours worked on Job 71. Prepare the journal entry at the end of the month to record the direct labor hours used if Deacon Corporation pays its employees an hourly wage of $9.75.Job Order Costing 5 16. As of January 1, 2015, Deacon Corporation expected to incur $10,000 of factory overhead. This would be applied per hour of machine usage, which is expected to be 4,000 hours for the month. The company incurs the following expenses during the month: $1,000 for indirect materials, $4, 100 for indirect labor, $5,000 for factory utilities, and $1,750 for factory depreciation. Job 70 required 1,900 of machine hours and Job 71 required 2,950 of machine hours. a. Calculate the predetermined factory overhead rate. b. Prepare the journal entry required to record the costs incurred. c. Prepare the journal entry to record the allocation of the factory overhead. 17. Throughout the year, Deacon Corporation (information in Exercise 16) incurred an additional $90, 400 expenses allocated to Factory Overhead. The company applied an additional $89,200 of Factory Overhead to Work in Process. At the end of January and December, was Factory Overhead overapplied or underapplied? Prepare the journal entry required as of the calendar year-end to dispose of the balance. 18. Deacon Corporation completed Job 70 on February 15 and Job 71 on March 18 (information found in Exercises 14-17). Job 70 required the following additional costs: $7,500 of materials, $5,000 of direct labor, and $4,000 of factory overhead. Job 71 required the following additional costs: $6, 100 of materials, $3,300 of factory overhead, and $4,900 of direct labor. a. Prepare the journal entries to record the completion of the jobs. b. If Work in Process had a beginning balance of $5,000 as of the beginning of January, what is the balance after the completion of the jobs? An additional $2,300 was transferred to Finished Goods inventory for Job 72.6 Chapter 17 19. During October, Carolina Cup completed two jobs. Although both were similar and required the same inputs, the company incurred a higher cost for Job 22. Use the information below to answer the following: a. Why did Job 22 have higher costs per finished good? b. What could have caused the difference? J CUJ D GS 1 S P313 A111 P156 F51 S P CS CUJ D GS 1 S P313 A112 P145 F51 s P CSJob Order Costing 7 20. TDFW completed two projects during the month of May. Although the projects were both similar, the company incurred higher costs for Job 71. Use the information shown to determine the following: a. Why did Job 71 have higher costs per finished good? b. What are some examples of what could have caused the difference? J C UJ D F$5S W122 P112 A111 F72 S P C S C UJ D FS 4S W1 11 P 111 A189 F71 S P C S8 Chapter 17 21. A production manager is concerned with the cost the company incurred in the recent undertaking of a project (Project 102). He compares the project's costs to another project that produced the same number of products in the previous month. Use the information to determine the following: a. Why did the new project have higher costs per finished goods? b. What could be the cause of the higher costs? P CUJ D C$ 2S C249 P111 R123 F13 S P CS P CUJ D C$2S C148 P1 1 1 R122 F13 S CSJob Order Costing 9 22. Prepare the journal entries required for the transactions below for a law firm that uses a job order cost system. a. Purchased $5,000 of office supplies on January 1. b. The top legal advisor of the firm worked thirty hours for one client for the month of January at an hourly rate of $35. c. Used $350 of office supplies throughout the month of January. 23. Prepare the journal entries required to record the following transactions for a computer repair shop using a job order cost system. a. The cleaning lady worked ten hours during the month of March at an hourly wage of $10. b. Factory overhead is applied at a rate of $6 per direct labor hour. During the month of March, Job 41 required fourteen direct labor hours . of $300. c. On March 18, the company completed Project 43, which had total costs 24. Prepare the journal entries to record the following transactions for an accounting firm that uses a job order cost system. a. Received a utility bill for $3,750 on May 4 b. Charged 50 hours to one client (Smith) for services provided during the month at an hourly rate of $40 c. Applied overhead to Smith at a rate of $7.50 per hour billed
