Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2. The Best Manufacturing Company uses standard costs with its job order cost accounting system. During the third quarter of 2013, an order

image text in transcribed

Problem 2. The Best Manufacturing Company uses standard costs with its job order cost accounting system. During the third quarter of 2013, an order of 4,000 units of Product Echo (Job. 3-3003) was accepted from a longtime customer. The standard cost to produce a unit is given below: Direct materials - 3.0 lbs at P8.00 per pound Direct labor-2 hours at P18 per hour Overhead -2 hours (variable P6; Fixed P10) Overhead is applied to production on the basis of direct labor hours. Normal capacity for the quarter was 9,000 direct labor hours. During the quarter, the following transactions related to the job occurred: a. Purchased 12,400 pounds of raw materials on account at P7.20 per pound b. Issued 12,400 pounds of raw materials to production c. Incurred 7,600 hours of direct labor at P18.40 per hour d. Manufacturing overhead incurred for the quarter totaled P135,300. e. Applied overhead to production. f. Transferred completed jobs to Finished Goods. g. Billed the customer at cost plus 60% mark-up on cost. REQUIRED: Journal entries to record the above. Company uses a job order cost system in its two Callowing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions

Question

Differentiate between intelligence testing and achievement testing.

Answered: 1 week ago