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What would the job cost sheets be for all 7 jobs using the categories: Beginning Balance, Current Costs: Direct Materials, Direct Labor, Applied Overhead, and
What would the job cost sheets be for all 7 jobs using the categories: Beginning Balance, Current Costs: Direct Materials, Direct Labor, Applied Overhead, and Total, based on the information in the attachment?
Grass Mower Company manufacturers a variety of gasoline powered mowers for discount hardware and department stores. The company uses a job cost system and treats each customer's order as a separate job. The primary mower components (motors, chassis, and wheels) are purchased from three decent suppliers under long term contracts that call for the Crect de Fivery of raw materials to the production toor as needed. When a customer's order is received, a raw materials purchase order is electronically placed with suppliers. The purchase order specifies the scheduled date that production is to begin as the defivery date for motors and chassis, the scheduled date production is to be completed is specified as the devery date for the wheels. As a consequence, there are no raw materials inventories, raw materials are charged rectly to Work in process upon receipt. Upon completion goods are shipped Crectly to customers rather than transferred to finished goods inventory. At the beginning of September the company had the following jobs in work in process inventories: Job 1 $19.000 Job 2 15,000 Job 3 16,000 Total $50,000 During September, the following activities took place: 1. Started jobs 4, 5,6, and 7. 2. Ordered and received the following raw materials for specified jobs: Motors Chassis Wheels Total Job 2 9700 9700 Job 3 0 0 1.100 1.100 Job 4 1,500 2.000 1,600 5,100 Job 5 1,000 4.000 1,000 6,000 Job 6 8.000 3,500 900 12,400 Job 7 7,500 3.800 11,300 Total $36,600 3. Incurred September manufacturing payrol: Direct Labor Job 1 $500 Job 2 3,100 Job 3 3,000 Job 4 Job 5 1,500 Job 6 2,500 Job 7 2,000 Total Direct Labor 16,600 4,000 hdrect Labor 4.000 2,000 4. hcurred aditional manufacturing overhead costs for September. Manufacturing supplies purchased and used Depreciation on factory fixed assets Factory utities 6,000 4,900 5. Applied manufacturing overhead using a predetermined rate based on predicted annual overhead and predicted annual Crect labor cost as follows: Predicted Annual Overhead $185,250 Predicted Annual Direct Labor cost $195,000 6. Completed and shipped jobs 1 and 6. The following is what was changed to these customers: Job 1 28,000 Job 6 26,000 Total 54,000 7. Selling and Administrative costs incurred in September are the following: $3,900Step by Step Solution
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