Riverside Engineering is a machine shop that uses job order costing. Overhead is
ID: 2364836 • Letter: R
Question
Riverside Engineering is a machine shop that uses job order costing. Overhead is applied to individual jobs at a predetermined rate based on direct labor costs. The job cost sheet for job no. 321 appears below.
JOB COST SHEET JOB NUMBER: 321
PRODUCT: 2" BRASS CHECK VALVES
UNITS COMPLETED: 4000
DATE STARTED: MAY 10
DATE COMPLETED: MAY 21
Direct Materials Used: $7,300
Direct Labor: 1,300
Manufacturing Overhead Applied: 3,100
Total cost of job 321: $11,700
Unit cost (11,700 / 4,000 units): $2.93
a. Summarize the manufacturing costs charged to job no. 321. b. Record the completion of job no. 321. c. Record the credit sale of 1,900 units from job no. 321 at a unit sales price of $5. Record in a separate entry the related cost of goods sold. Prepare general journal entries to the above statements (Omit the "$" sign in your response):
Explanation / Answer
manufacturing costs are like direct material cost, direct labour costs etc. sales of 1900 units will give us = 1900*5 = $9500 Cost of 1900 units = 2.93*1900 = 5567 ...................................................debit.......................credit Cash............................................9500 COGS........................................................................5567 Revenue....................................................................3933
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