Accounting 2 Chapter 16
Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
$3,085,000
On May 7, Hatch Company purchased on account 710 units of raw materials at $25 per unit. During May, raw materials were requisitioned for production as follows: 256 units for Job 200 at $22 per unit and 213 units for Job 305 at $25 per unit. Journalize the entry on May 7 to record the purchase. May 7 Journalize the entry on May 31 to record the requisition from the materials storeroom. May 31
May 7 Materials $17,750 Accounts Payable $17,750 May 31 Work in Process $10,957 Materials $10,957
During May, Hatch Company accumulated 700 hours of direct labor costs on Job 200 and 610 hours on Job 305. The total direct labor was incurred at a rate of $12 per direct labor hour for Job 200 and $16 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May
Work in Process $18,160 Wages Payable $18,160
At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units. The following data relate to these two jobs: On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000. a. Determine the balance on the job cost sheets for Jobs 200 and 305 at the end of May. b. Determine the cost per unit for Jobs 200 and 305 at the end of May. If required, round your answers to two decimal places.
a. Job 200 $149,375 Job 305 $102,650 b. Job 200 $62.5 Job 305 $50
Darling Company estimates that total factory overhead costs will be $250,000 for the year. Direct labor hours are estimated to be 25,000. a. For Darling Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. b. During May, Darling Company accumulated 850 hours of direct labor costs on Job 200 and 550 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. c. Prepare the journal entry to apply factory overhead to both jobs in May according to the predetermined overhead rate.
a. $10 per direct labor hour b. $14,000 c. Work in Process $14,000 Factory Overhead $14,000
During May, Jernigan Company incurred factory overhead costs as follows: indirect materials, $3,980; indirect labor, $4,450; utilities cost, $1,510; and factory depreciation, $3,060. Journalize the entry to record the factory overhead incurred during May.
Factory Overhead $13,000 Materials $3,980 Wages Payable $4,450 Utilities Payable $1,510 Accumulated Depreciation- Factory $3,060
