Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The West Shore Furniture Company uses normal job order costing in its only production department. Overhead is applied to jobs by a predetermined rate, which

image text in transcribed
image text in transcribed
The West Shore Furniture Company uses normal job order costing in its only production department. Overhead is applied to jobs by a predetermined rate, which is based on direct labor hours. The company began business on December 1, 2021. The only job started into process during December was Job 1001 . During December, the company purchased direct materials with a total cost of $28,500, but $5,750 of these direct materials were used on Job 1001. The company also charged a total of $25,860 in conversion costs (direct labor and applied overhead) to Job 1001 during December. Job 1001 was NOT finished as of the end of December, and no other jobs were worked on during the month. There was no underapplied or over-applied overhead for December. The following transactions occurred during the year 2022. 1. Estimated overhead for 2022 is $283,475. The estimated direct labor hours for 2022 total 83,375 . 2. Direct materials purchased during 2022 cost a total of $592,000. 3. Direct materials were used on jobs during 2022 as follows: JOB1001JOB1002JOB1003$149,710$247,696$127,340 4. During 2022, there were 25,700 direct labor hours on Job 1001;38,210 direct labor hours on Job 1002; and 27,440 direct labor hours on Job 1003. The direct labor hours used during 2022 had a rate of $24 per hour. 5. Other costs incurred during 2022 include the following: 97, uv Factory Small Tool and Equipment Repair Expense $76,390 6. Job 1001 and 1002 were completed during the year. Job 1001 consisted of 10,000 units, and Job 1002 consisted of 15,000 units. 7. 6000 units of Job 100 was sold during 2022 for $250 per unit. Also, 10,000 of the 15,000 units on Job 1002 were sold during 2022 at a price of $150 each. D. Prepare, in good form, a fully complete Schedule of Cost of Goods Manufactured for 2022. E. Add together the total cost charged to Jobs 1001 and 1002 . Does the answer equal the amount of Cost of Goods Manufactured that you got in Part D? Should it? The West Shore Furniture Company uses normal job order costing in its only production department. Overhead is applied to jobs by a predetermined rate, which is based on direct labor hours. The company began business on December 1, 2021. The only job started into process during December was Job 1001 . During December, the company purchased direct materials with a total cost of $28,500, but $5,750 of these direct materials were used on Job 1001. The company also charged a total of $25,860 in conversion costs (direct labor and applied overhead) to Job 1001 during December. Job 1001 was NOT finished as of the end of December, and no other jobs were worked on during the month. There was no underapplied or over-applied overhead for December. The following transactions occurred during the year 2022. 1. Estimated overhead for 2022 is $283,475. The estimated direct labor hours for 2022 total 83,375 . 2. Direct materials purchased during 2022 cost a total of $592,000. 3. Direct materials were used on jobs during 2022 as follows: JOB1001JOB1002JOB1003$149,710$247,696$127,340 4. During 2022, there were 25,700 direct labor hours on Job 1001;38,210 direct labor hours on Job 1002; and 27,440 direct labor hours on Job 1003. The direct labor hours used during 2022 had a rate of $24 per hour. 5. Other costs incurred during 2022 include the following: 97, uv Factory Small Tool and Equipment Repair Expense $76,390 6. Job 1001 and 1002 were completed during the year. Job 1001 consisted of 10,000 units, and Job 1002 consisted of 15,000 units. 7. 6000 units of Job 100 was sold during 2022 for $250 per unit. Also, 10,000 of the 15,000 units on Job 1002 were sold during 2022 at a price of $150 each. D. Prepare, in good form, a fully complete Schedule of Cost of Goods Manufactured for 2022. E. Add together the total cost charged to Jobs 1001 and 1002 . Does the answer equal the amount of Cost of Goods Manufactured that you got in Part D? Should it

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

Authors: Joe Ben Hoyle, C.J. Skender, Joe Hoyle

1st Edition

0982361831, 978-0982361832

More Books

Students also viewed these Accounting questions

Question

=+Differentiate the key characteristics of a personal brand

Answered: 1 week ago

Question

1. What are the benefi ts of studying communication?

Answered: 1 week ago

Question

=+Discuss the key benefits and challenges of a personal brand

Answered: 1 week ago