Systems Design: Job-Order Costing r The company uses a job-order costing system and applies manufacturing overhead cost to on the basis of direct labor-hours. At the beginning of the year, the following estimates were by made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost Nkr360,000: and direct labor-hours, 900. quired on account): hRaw materials were requisitioned for use in production (all direct materials), Nkr185,00. The following transactions took place during the year (all purchases and services were ac- Raw materials were purchased for use in production, Nkr200.000. Utility bills were incurred. Nkr70.00 (90% related to factory operations, and the remainder related to selling and administrative activities) Salary and wage costs were incurred: d. Direct labor (975 hours). Indirect labor Nkr230,000 Nkr90,000 Nkr110,000 Selling and administrative salaries c. Maintenance costs were incurred in the factory, Nkr54.000 f. Advertising costs were incurred. Nkr136,000 g. Depreciation was recorded for the year, Nkr95.000 (80& related to factory equipment, and the remainder related to selling and administrative equipment). Rental cost incurred on buildings. Nkr 120,000 (85% related to factory operations, and the re. mainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs Nkr h. j Cost of goods manufactured for the year, Nkr770.000 L Sales for the year (all on account) totaled Nkrl,200.000 Thess goods cost Nkr800,000 according to their job cost sheets. The halances in the inventory accounts at the hegioning of the year were: Raw Materials Work in Process Finished Goods Nkr30,000 Nkr21,000 Nkr80,000 Systems Design: Job-Order Costing r The company uses a job-order costing system and applies manufacturing overhead cost to on the basis of direct labor-hours. At the beginning of the year, the following estimates were by made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost Nkr360,000: and direct labor-hours, 900. quired on account): hRaw materials were requisitioned for use in production (all direct materials), Nkr185,00. The following transactions took place during the year (all purchases and services were ac- Raw materials were purchased for use in production, Nkr200.000. Utility bills were incurred. Nkr70.00 (90% related to factory operations, and the remainder related to selling and administrative activities) Salary and wage costs were incurred: d. Direct labor (975 hours). Indirect labor Nkr230,000 Nkr90,000 Nkr110,000 Selling and administrative salaries c. Maintenance costs were incurred in the factory, Nkr54.000 f. Advertising costs were incurred. Nkr136,000 g. Depreciation was recorded for the year, Nkr95.000 (80& related to factory equipment, and the remainder related to selling and administrative equipment). Rental cost incurred on buildings. Nkr 120,000 (85% related to factory operations, and the re. mainder related to selling and administrative facilities) Manufacturing overhead cost was applied to jobs Nkr h. j Cost of goods manufactured for the year, Nkr770.000 L Sales for the year (all on account) totaled Nkrl,200.000 Thess goods cost Nkr800,000 according to their job cost sheets. The halances in the inventory accounts at the hegioning of the year were: Raw Materials Work in Process Finished Goods Nkr30,000 Nkr21,000 Nkr80,000
