Reference no: EM132215327
Question - Highland Co. is a job-order-costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year.
Activity
|
Cost
|
Driver
|
Amount of driver
|
setups
|
$120,000
|
number of setups
|
6,000
|
purchasing
|
$80,000
|
number of parts
|
20,000
|
other overhead
|
$150,000
|
direct labor hours
|
75,000
|
The following information about the jobs was given for January.
|
Job 1001
|
Job 1002
|
Job 1003
|
Job 1004
|
Balance I/I
|
$44,900
|
$60,700
|
$0
|
$0
|
direct materials
|
$54,000
|
$37,000
|
$25,000
|
$41,000
|
direct labor
|
$80,000
|
$38,500
|
$43,000
|
$71,000
|
number of setups
|
40
|
10
|
30
|
200
|
number of parts
|
300
|
180
|
400
|
500
|
direct labor hours
|
5,000
|
2,400
|
5,200
|
1,200
|
Units
|
2,000
|
1,500
|
800
|
1,800
|
By January 31, Jobs 1001 and 1004 were completed and only Job 1004 was sold. The remaining jobs were still in process.
(1) Calculate three activity rates.
(2) Calculate the overhead cost per unit for Job 1004.
(3) Determine the cost per unit for Jobs 1001 and 1004.
(4) Calculate the beginning balance and ending balance of work-in-process for January.
(5) Determine the cost of goods manufactured.
(6) Calculate the cost of goods sold.
(7) Prepare all necessary journal entries pertaining Job 1001, Job 1002, Job 1003, and Job 1004.