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A machine shop that uses job order costing. Overhead isapplied to individual job

ID: 2433456 • Letter: A

Question

A machine shop that uses job order costing. Overhead isapplied to individual jobs ata predetermined rate based on directlabor costs. the job costs sheet for job no. 321 appearsbelow: Job Cost Sheet Job Number:321                                                        Date Started: May 10 Product: 2" Brass Checkvalves                                   Date Completes: May 21 Units Completed: 4,000 Direct omaterials used.....................................$7,720 Directlabor.....................................................  1,400 Manufacturing overheadapplied......................   3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general journal entires to: summarize themanufacturing costs charged to job no. 321 (use one compoundentry) A machine shop that uses job order costing. Overhead isapplied to individual jobs ata predetermined rate based on directlabor costs. the job costs sheet for job no. 321 appearsbelow: Job Cost Sheet Job Number:321                                                        Date Started: May 10 Product: 2" Brass Checkvalves                                   Date Completes: May 21 Units Completed: 4,000 Direct omaterials used.....................................$7,720 Directlabor.....................................................  1,400 Manufacturing overheadapplied......................   3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general journal entires to: summarize themanufacturing costs charged to job no. 321 (use one compoundentry) Direct omaterials used.....................................$7,720 Directlabor.....................................................  1,400 Manufacturing overheadapplied......................   3,080 Total cost of job no. 321.................................$12,200 Unit cost ( $12,200 / 4,00 units...................... $3.05 Prepare general journal entires to: summarize themanufacturing costs charged to job no. 321 (use one compoundentry)

Explanation / Answer

Work in Process Inventory

$12,200

                       Materials Inventory

$7,720

                     Direct Labor

$1,400

                             Manufacturing Overhead

$3,080

(Manufacturing costs incurred on job no.321)

Work in Process Inventory

$12,200

                       Materials Inventory

$7,720

                     Direct Labor

$1,400

                             Manufacturing Overhead

$3,080

(Manufacturing costs incurred on job no.321)

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