Reference no: EM132594972
Question - ABC Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account.
During the month of January, ABC Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred factory labor costs of $70,000. Of this amount $16,000 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $20,000; depreciation expense on equipment $19,000; and various other manufacturing overhead costs on account $16,000.
4. Assigned direct materials and direct labor to jobs as follows:
Job No. Direct Materials Direct Labor
50 $10,000 $ 5,000
51 39,000 25,000
52 30,000 20,000
Required -
a. Calculate the predetermined overhead rate for 2014, assuming ABC Company estimates total manufacturing overhead costs of $980,000; direct labor costs of $700,000; and direct labor hours of 20,000 for the year.
b. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.
c. Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
d. Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.
e. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
f. Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
g. What is the balance in the Finished Goods Inventory account at the end of the month?
h. What is the amount of over-applied or under-applied overhead?
Calculate the total dividend paid to stockholder on february
: At January 1, 2020, Calculate the total dividend (preferred stock dividend + common stock dividend) paid to stockholders on February 2, 2020.
|
What are the sources of your political beliefs
: What are the sources of your political beliefs and why do you believe what you do? By this I am asking what aspects of your life,
|
Interest groups attempt to influence politicians
: Interest groups attempt to influence politicians and public policy in a variety of ways. Define the term interest group, distinguishing it from political party
|
How calculate the balance in the retained earnings account
: Calculate the balance in the retained earnings account at January 31, 2020.At January 1, 2020, JYA Corporation had outstanding 6,000 shares of 5%
|
Calculate the predetermined overhead rate
: Calculate the predetermined overhead rate for 2014, assuming ABC Company estimates total manufacturing overhead costs of $980,000
|
How organization hr department could be innovative
: How do you feel your organization's HR department could be more innovative and creative? Please give three suggestions and elaborate on how your suggestions.
|
Share the conclusion and corresponding ethical theory
: Share the conclusion and corresponding ethical theory you created in the case study. Utilizing another ethical theory, make an argument against your conclusion
|
Calculate the balance in paid-in capital-treasury account
: Calculate the balance in the paid-in capital - treasury account at January 31, 2020.At January 1, 2020, JYA Corporation had outstanding 6,000 shares of 5%
|
How could your organization operate with virtual teams
: How could/or does your organization operate with virtual teams now or in the future? What are some of the ethical principles that your organization operates.
|