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Problem 2 - 4 A ( Algo ) Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P 1 , P 2 ,
Problem A Algo Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P P P Skip to question The following information applies to the questions displayed below. Watercrafts predetermined overhead rate is of direct labor. Information on the companys production activities during May follows. Purchased raw materials on credit, $ Materials requisitions record use of the following materials for the month. Job $ Job Job Job Job Total direct materials Indirect materials Total materials requisitions $ Time tickets record use of the following labor for the month. These wages were paid in cash. Job $ Job Job Job Job Total direct labor Indirect labor Total labor cost $ Applied overhead to Jobs and Transferred Jobs and to Finished Goods Inventory. Sold Jobs and on credit at a total price of $ Recorded the cost of goods sold for Jobs and Incurred the following actual other overhead costs during the month. Depreciation of factory building $ Depreciation of factory equipment Expired factory insurance Accrued property taxes payable Applied overhead at monthend to the Work in Process Inventory account for Job and using the predetermined overhead rate of of direct labor cost. Problem A Algo Part a Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance. b Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods Inventory balance. c Compute the total cost of each job sold, and prove that the sum of their costs equals the Cost of Goods Sold balance.tableTotal Job Costsa Work in Process Inventory,Balanceb Finished Goods Inventory,Balancec Cost of Goods Sold,Balance
Problem A Algo Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P P P
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The following information applies to the questions displayed below.
Watercrafts predetermined overhead rate is of direct labor. Information on the companys production activities during May follows.
Purchased raw materials on credit, $
Materials requisitions record use of the following materials for the month.
Job $
Job
Job
Job
Job
Total direct materials
Indirect materials
Total materials requisitions $
Time tickets record use of the following labor for the month. These wages were paid in cash.
Job $
Job
Job
Job
Job
Total direct labor
Indirect labor
Total labor cost $
Applied overhead to Jobs and
Transferred Jobs and to Finished Goods Inventory.
Sold Jobs and on credit at a total price of $
Recorded the cost of goods sold for Jobs and
Incurred the following actual other overhead costs during the month.
Depreciation of factory building $
Depreciation of factory equipment
Expired factory insurance
Accrued property taxes payable
Applied overhead at monthend to the Work in Process Inventory account for Job and using the predetermined overhead rate of of direct labor cost.
Problem A Algo Part
a Compute the total cost of each job in process and prove that the sum of their costs equals the Work in Process Inventory account balance.
b Compute the total cost of each job finished but not sold, and prove that the sum of their costs equals the Finished Goods Inventory balance.
c Compute the total cost of each job sold, and prove that the sum of their costs equals the Cost of Goods Sold balance.tableTotal Job Costsa Work in Process Inventory,Balanceb Finished Goods Inventory,Balancec Cost of Goods Sold,Balance
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