ecomplete Data: Job Costing olod Renovations (CHR) is a rapidly growing company
ID: 2539924 • Letter: E
Question
ecomplete Data: Job Costing olod Renovations (CHR) is a rapidly growing company that has not beern Chesele despite aHue increases in sales. It has hired you as a consultant to find ways to improve (LO 7-2,3,4) . You believe that the problem results from poor cost control and inaccurate cost on jobs. The company has essentially no accounting system from which to collect You are a Production (D Completed Job 61. (2) Started and completed Job 62 (3) Started Job 63. Inventory values in-process inventory (excluding applied overhead) May 31: Job 61 Direct materials $ 8,000 June 30: Job 63 ...$6,400 . Each job in work-in-process inventory was exactly 50 percent completed as to labor- hours; however, all direct materials necessary to do the entire job were charged to each job as soon as it was started. or June 30. Actual overhead was $80,000. .There were no direct materials inventories or finished goods inventories at either May 31 Cost of goods sold (before adjustment for over- or underapplied overhead) Job 61 Materials. . Labor Overhead . . . Total. $123,200 Job 62 Materials.. . … Labor Overhead.. TotalExplanation / Answer
There seems to be sone printing error in T- Account of Cash or accounts payable and Wages Payable as there is mentioned as actual overhead costs against it. It has to be mentioned about it that this T-accounts belongs to Materials and labor which can not be overhead.
Cash or Accounts Payable Actual overhead costs for June 18400 Wages Payable Actual overhead costs for June 128000 Overhead Actual 80000 Applied 128000 Actual overhead costs for June Work In Process - Job 61 Direct Materials 8000 Cost of goods sold Direct Labor 38400 Direct Materials 8000 Manufacturing Overhead 38400 Direct Labor 76800 Jun-01 84800 Manufacturing overhead 76800 Labor added in June 38400 Overhead added in June 38400 Final balance 161600 Work In Process - Job 62 Materials added in June 12000 Cost of goods sold Labor added in June 48000 Direct Materials 12000 Overhead added in June 48000 Direct Labor 48000 Final balance 108000 Manufacturing overhead 48000 Work In Process - Job 63 Materials added in June 6400 Labor added in June 41600 Overhead added in June 41600 Final balance 89600 Cost of goods sold-Job 61 Materials Work In process - Job 61 8000 Labor Work In process - Job 61 76800 Overhead Work In process - Job 61 76800 Final balance Work In process - Job 61 161600 Cost of goods sold-Job 62 Materials Work In process - Job 62 12000 Labor Work In process - Job 62 48000 Overhead Work In process - Job 62 48000 Final balance Work In process - Job 62 108000 Unapplied Overhead =(128000-8000) 48000Related Questions
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