Job-Order Costing (Problem Solving 3)
400,000/72,000 = 5.56
Franklin Company uses a job-order costing system. Assume that Job #309 is the only one in process. The following information is available: Budgeted DL hrs - 72,000 Budgeted OH - 400,000 DL cost - 80,000 Budgeted machine hrs - 11,000 DM - 122,750 What is the overhead application rate if Franklin uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar)?
DM - 122,750 DL - 80,000 FOH (80,000*120%) - 104,000 Total cost = 306,750
Franklin Company uses a job-order costing system. Assume that Job #309 is the only one in process. The following information is available: Budgeted DL hrs - 72,000 Budgeted OH - 400,000 DL cost - 80,000 Budgeted machine hrs - 11,000 DM - 122,750 What is the total cost of Job #309 assuming that overhead is applied at the rate of 130% of direct labor cost (rounded to the nearest whole dollar)?
54,750/24,000 = 2.28
Peoria Company has two departments (Processing and Packaging) and uses a job-order costing system. Peoria applies overhead in Processing based on machine hours and on direct labor cost in Packaging. The following information is available for August: Processing Machine hours - 3,600 DL cost - 47,600 Applied OH - 60,500 Packaging Machine hours - 1,500 DL cost - 24,000 Applied OH - 54,750 What is the overhead application rate for Packaging?
60,500/3,600 = 16.81
Peoria Company has two departments (Processing and Packaging) and uses a job-order costing system. Peoria applies overhead in Processing based on machine hours and on direct labor cost in Packaging. The following information is available for August: Processing Machine hours - 3,600 DL cost - 47,600 Applied OH - 60,500 Packaging Machine hours - 1,500 DL cost - 24,000 Applied OH - 54,750 What is the overhead application rate per machine hour for Processing?
DL fabricating - 429/1.50 = 286 Applied OH finishing (15*18) = 270 Fabricating DM - 1,590 DL cost - 286 OH applied - 429 Total costs = 2,305 Finishing DM - 580 DL cost - 48 OH applied - 270 Total costs = 898 Total (2,305+898)=3,203
Products at Conroy Manufacturing are sent through two production departments: Fabricating and Finishing. Overhead is applied to products in the Fabricating Department based on 150 percent of direct labor cost and $18 per machine hour in Finishing. The following information is available about Job #297: Fabricating DM - 1,590 DL cost - ? DL hrs - 22 Machine hrs - 5 OH - applied - 429 Finishing DM - 580 DL cost - 48 DL hrs - 6 Machine hrs - 15 OH - applied - 15 What is the total cost of Job #297?
DL hours #8 - 2,800 #12 - 3,300 #15 - 4,000 Total = 10,100 DL rate - 9.50 OH application rate - 125% Total OH Applied = 119,938
Robertson Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15. Raw material used - 130,000 Direct labor /hour - 9.50 OH applied based on DL cost - 125% Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000. How much overhead is applied to Work in Process?
Beg WIP - 2,800 DM - 1,250 DL - 1,400 FOH (1,400*40%) - 560 End WIP (2,800+1,250+1,400+560) = 6,010
Tuscaloosa Company applies overhead to jobs at the rate of 40 percent of direct labor cost. Direct material of $1,250 and direct labor of $1,400 were expended on Job #145 during September. On August 31, the balance of Job #145 was $2,800. The balance on September 30 is:
860,000-9,000 = 851,000
At the end of the last fiscal year, Drury Company had the following account balances: Overapplied OH - 9,000 COGS - 860,000 WIP - 36,000 FG - 74,000 If the most common treatment of assigning overapplied overhead were used, the final balance in Cost of Goods Sold is:
980,000-6,000 = 974,000
At the end of the last fiscal year, Sheraton Company had the following account balances: Overapplied OH - 6,000 COGS - 980,000 WIP - 38,000 FG - 82,000 If the most common treatment of assigning overapplied overhead were used, the final balance in Cost of Goods Sold is:
Direct materials Total WIP - 6,800 Other WIP - (3,981) Costs remaining in WIP = 2,819 Overhead - 714 DL (714*2) - 1,428 Total = 2,142 Direct materials (2,819-2,142) = 677
Chapman Company uses a job-order costing system. At the beginning of March, the company had two jobs in process with the following costs: Job #456 DM - 3,400 DL - 510 OH - 255 Job #461 DM - 1,100 DL - 289 OH - ? Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis. During March, Chapman' employees worked on Job #649. At the end of the month, $714 of overhead had been applied to this job. Total Work in Process at the end of the month was $6,800 and all other jobs had a total cost of $3,981. What amount of direct material is included in Job #649?
Direct labor hours (298/8.50) = 34 Overhead application rate (255/60) = 4.25 (34*4.25) = 144.50
Chapman Company uses a job-order costing system. At the beginning of March, the company had two jobs in process with the following costs: Job #456 DM - 3,400 DL - 510 OH - 255 Job #461 DM - 1,100 DL - 289 OH - ? Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis. How much overhead was included in the cost of Job #461 at the beginning of March?
Direct labor hours (510/8.50) = 60 Overhead application rate (255/60hrs) = 4.25
Chapman Company uses a job-order costing system. At the beginning of March, the company had two jobs in process with the following costs: Job #456 DM - 3,400 DL - 510 OH - 255 Job #461 DM - 1,100 DL - 289 OH - ? Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis. What is the overhead application rate per direct labor hour?
51,750/23,000 = 2.25
Charleston Company has two departments (Processing and Packaging) and uses a job-order costing system. Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging. The following information is available for July: Processing Machine hours - 2,500 DL costs - 44,50 Applied OH - 55,000 Packaging Machine hours - 1,000 DL costs - 23,000 Applied OH - 51,750 What is the overhead application rate for Packaging?
55,000/2,500 = 22
Charleston Company has two departments (Processing and Packaging) and uses a job-order costing system. Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging. The following information is available for July: Processing Machine hours - 2,500 DL costs - 44,50 Applied OH - 55,000 Packaging Machine hours - 1,000 DL costs - 23,000 Applied OH - 51,750 What is the overhead application rate per machine hour for Processing?
Total Cost incurred (24,000+70,000+60,000+48,000) = 202,000 Less: COGM = (185,000) Costs remaining in WIP (202,000-185,000) = 17,000 Overhead - 5,600 Direct labor (48,000/60,000 = 0.80) (5,600/.80) = 7,000 Total (5,600+7,000) = 12,600 Direct materials (17,000-12,600) = 4,400
Charleston Company uses a job-order costing system. During April, the following costs appeared in the Work in Process Inventory account: Beginning balance - 24,000 Direct material used - 70,000 Direct labor incurred - 60,000 Applied overhead - 48,000 Cost of goods manufactured - 185,000 Charleston Company applies overhead on the basis of direct labor cost. There was only one job left in Work in Process at the end of April which contained $5,600 of overhead. What amount of direct material was included in this job?
350,000/65,000 = 5.38
Davis Company uses a job-order costing system. Assume that Job #504 is the only one in process. The following information is available: Budgeted DL hrs - 65,000 Budgeted OH - 350,000 DL cost - 70,000 Budgeted machine hrs - 9,000 DM - 110,500 What is the overhead application rate if Davis uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar)?
DM - 110,500 DL - 70,000 FOH (70,000*135%) - 94,500 Total cost = 275,000
Davis Company uses a job-order costing system. Assume that Job #504 is the only one in process. The following information is available: Budgeted DL hrs - 65,000 Budgeted OH - 350,000 DL cost - 70,000 Budgeted machine hrs - 9,000 DM - 110,500 What is the total cost of Job #504 assuming that overhead is applied at the rate of 135% of direct labor cost (rounded to the nearest whole dollar)?
Total costs incurred (30,000+90,000+75,000+52,500) = 247,500 Less: COGM = (225,000) Costs remaining in WIP = 22,500 Overhead = 6,300 Direct labor (52,500/75,000 = 0.70) (6,300/0.70) = 9,000 Total (6,300+9,000) = 15,300 Direct materials = 7,200
Jacksonville Company uses a job-order costing system. During May, the following costs appeared in the Work in Process Inventory account: Beginning balance - 30,000 Direct material used - 90,000 Direct labor incurred - 75,000 Applied overhead - 52,500 Cost of goods manufactured - 225,000 Jacksonville Company applies overhead on the basis of direct labor cost. There was only one job left in Work in Process at the end of May which contained $6,300 of overhead. What amount of direct material was included in this job?
9,000/125% = 7,200
Levine Company has a job-order costing system and an overhead application rate of 125 percent of direct labor cost. Job #123 is charged with direct material of $18,000 and overhead of $9,000. Job #124 has direct material of $4,500 and direct labor of $12,000. What amount of direct labor cost has been charged to Job #123?
DM - 4,500 DL - 12,000 FOH (12,000*125%) - 15,000 Total cost = 31,500
Levine Company has a job-order costing system and an overhead application rate of 125 percent of direct labor cost. Job #123 is charged with direct material of $18,000 and overhead of $9,000. Job #124 has direct material of $4,500 and direct labor of $12,000. What is the total cost of Job #124?
DM - 5,000 DL - 725 FOH (26*40) - 1040 Total (5,000+725+1040) = 6,765
Mayflower Corporation manufactures products on a job-order basis. The job cost sheet for Job #656 shows the following for September: DM - 5,000 DL (100 hours @7.25) - 725 Machine hours incurred - 40 Predetermined overhead rate per machine hour - 26 At the end of September, what total cost appears on the job cost sheet for Job #656?
DL hrs #6 - 2,500 #9 - 3,100 #13 - 4,200 Total = 9,800 OH application rate - 8.50 Total OH applied - 120% 9,800*8.50 = 83,300 83,300*120% = 99,960
Moore Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13. Raw material used - 120,000 Direct labor /hour - 8.50 OH applied based on DL cost - 120% Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is $33,000. Other actual overhead costs totaled $36,000 How much overhead is applied to Work in Process?
Job #6 DM (120,000*30%) - 36,000 DL (2,500*8.50) - 21,250 FOH (21,250*120%) - 25,500 Total (36,000+21,250+25,500) = 82,750 Job #9 DM (120,000*.25) - 30,000 DL (3,100*8.50) - 26,350 FOH (26,350*120%) - 31,620 Total (30,000+26,350+31,620) = 87,970 Total (82,750+87,970) = 170,720
Moore Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13. Raw material used - 120,000 Direct labor /hour - 8.50 OH applied based on DL cost - 120% Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is $33,000. Other actual overhead costs totaled $36,000 If Job #13 is completed and transferred, what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period?
DM (120,000*30%) - 36,000 DL (2,500*8.50) - 21,250 Total prime costs = 57,250
Moore Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13. Raw material used - 120,000 Direct labor /hour - 8.50 OH applied based on DL cost - 120% Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is $33,000. Other actual overhead costs totaled $36,000 What is the prime cost of Job #6?
30+25+25 = 80 100-80 - 20% Indirect materials (120,000*20%) - 24,000 Indirect labor - 33,000 Other OH costs - 36,000 Total prime costs = 93,000
Moore Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13. Raw material used - 120,000 Direct labor /hour - 8.50 OH applied based on DL cost - 120% Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is $33,000. Other actual overhead costs totaled $36,000 What is the total amount of actual overhead?
3,100*8,50 = 26,350 26,350*120% = 31,620
Moore Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13. Raw material used - 120,000 Direct labor /hour - 8.50 OH applied based on DL cost - 120% Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is $33,000. Other actual overhead costs totaled $36,000 What is the total amount of overhead applied to Job #9?
Job #6 DM (130,000*25%) - 32,500 DL (2,800*9.50) - 26,600 FOH (26,600*125%) - 33,250 Total = 92,350 Job #9 DM (130,000*.30) - 39,000 DL (3,300*9.50) - 31,350 FOH (31,350*125%) - 39,188 Total = 109,538 Total = 201,888
Robertson Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15. Raw material used - 130,000 Direct labor /hour - 9.50 OH applied based on DL cost - 125% Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000. If Job #15 is completed and transferred, what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period?
DM (130,000*25%) - 32,500 DL (2,800*9.50) - 26,600 Total prime costs = 59,100
Robertson Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15. Raw material used - 130,000 Direct labor /hour - 9.50 OH applied based on DL cost - 125% Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000. What is the prime cost of Job #8?
Indirect materials (130,000*15) - 19,500 Indirect labor - 45,000 Other OH costs - 50,000 Total Actual OH = 114,500
Robertson Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15. Raw material used - 130,000 Direct labor /hour - 9.50 OH applied based on DL cost - 125% Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000. What is the total amount of actual overhead?
3,300*9.50 = 31,350 31,350*125% = 37,188
Robertson Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15. Raw material used - 130,000 Direct labor /hour - 9.50 OH applied based on DL cost - 125% Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000. What is the total amount of overhead applied to Job #12?
Sales - 3,600,000 COGS - 2,040,000 FOH underapplied (700,000-648,000) - 52,000 Total = 2,092,000 SG&A expenses - 900,000 Pretax income (3,600,000 - 2,092,000 - 900,000) = 608,000
Sanchez Products has no Work in Process or Finished Goods inventories at the close of business on December 31 of the current year. The balances of Sanchez Products' accounts as of December 31 are as follows: COGS - unadjusted - 2,040,000 S&A expenses - 900,000 Sales - 3,600,000 MOH control - 700,000 MOH applied - 648,000 What is the pretax income for the current year
Sales 4,000,000 COGS - 2,520,000 FOH Underapplied (800,000-754,000) - 46,000 Total = 2,566,000 SG&A - 950,000 Pretax income (4,000,000 - 2,520,000 - 950,000) = 484,000
Sloane Products has no Work in Process or Finished Goods inventories at the close of business on December 31 of the current year. The balances of Sloane Products' accounts as of December 31 are as follows: COGS - unadjusted - 2,520,000 S&A expenses - 950,000 Sales - 4,000,000 MOH control - 800,000 MOH applied - 754,000 What is the pretax income for the current year?
401 DL (5,550/ 1.50) - 3,700 DM - 5,670 DL - 3,700 FOH - 5,550 Total = 14,920 323 DM - 3,200 DL - 4,500 FOH - 6,300 Total = 14,000 Total = 28,920
The following information pertains to Romano Company for September: Job #323 DM - 3,200 DL - 4,500 OH - ? Job #325 DM - ? DL - 5,000 OH -? Job #401 DM - 5,670 DL - ? OH - 5,550 Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. Assume that Jobs #323 and #401 are incomplete at the end of September. What is the balance in Work in Process Inventory at that time?
4,500*1.40 = 6,300
The following information pertains to Romano Company for September: Job #323 DM - 3,200 DL - 4,500 OH - ? Job #325 DM - ? DL - 5,000 OH -? Job #401 DM - 5,670 DL - ? OH - 5,550 Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. What amount of overhead is applied to Job #323?
5,000*1.40 = 7,500
The following information pertains to Romano Company for September: Job #323 DM - 3,200 DL - 4,500 OH - ? Job #325 DM - ? DL - 5,000 OH -? Job #401 DM - 5,670 DL - ? OH - 5,550 Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. What amount of overhead is applied to Job #325?
OH for 323 & 325 323 - 6,300 325 - 7,500 323 DM - 3,200 DL - 4,500 FOH - 6,300 Total = 14,000 325 - direct materials 5,000+7,500 = 12,500 14,000-12,500 = 1,500 DM = 1,500
The following information pertains to Romano Company for September: Job #323 DM - 3,200 DL - 4,500 OH - ? Job #325 DM - ? DL - 5,000 OH -? Job #401 DM - 5,670 DL - ? OH - 5,550 Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical. What is the amount of direct materials for Job #325?
DM - 6,000 DL - 935 FOH (28*50) - 1,400 Total (6,000+935+1400) = 8,335
Trinity Corporation manufactures products on a job-order basis. The job cost sheet for Job #902 shows the following for June: DM - 6,000 DL (100 hours @8.50) - 935 Machine hours incurred - 50 Predetermined overhead rate per machine hour - 28 At the end of June, what total cost appears on the job cost sheet for Job #902?
7,200/120% = 6,000
Williams Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost. Job #63 is charged with direct material of $12,000 and overhead of $7,200. Job #64 has direct material of $2,000 and direct labor of $9,000. What amount of direct labor cost has been charged to Job #63?
DM - 2,000 DL - 9,000 FOH (9,000*120%) - 10,800 Total cost = 21,800
Williams Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost. Job #63 is charged with direct material of $12,000 and overhead of $7,200. Job #64 has direct material of $2,000 and direct labor of $9,000. What is the total cost of Job #64?
Direct materials - 2,500 Direct labor (15*7) = 105 Factory overhead (6*18) = 108 Total (2,500+105+108) = 2,713
Wyman Company is a graphic design shop that produces jobs to customer specifications. During January, Job #3051 was worked on and the following information is available: Direct material used - 2,500 Direct labor hours worked - 15 Machine time used - 6 Direct labor rate per hour - 7 Overhead application rate per hour of machine time - 18 What was the total cost of Job #3051 for January?