Job 599 (650 units) was completed during January. Job 600 was still in progress.
ID: 2556915 • Letter: J
Question
Job 599 (650 units) was completed during January. Job 600 was still in progress.
Please show work, so I can learn how to solve the probelm's. Thanks
At 12/31/17, the company had the following account balances: Raw materials $ 2,500 WIP $ 16,720 (all Job 599) FG $ 44,895 At the beginning of 2018, the company made the following estimates: Total estimated overhead costs $ 348,750 Total estimated direct labor hours 15,000 The company believes that direct labor hours drive MOH. During January 2018, the following activity occurred: Job 599 Job 600 Materials purchased $ 52,000 Materials requisitioned (used) $ 21,500 $ 12,900.00 $ 8,600.00 Direct labor costs ($10/hour) $ 12,450 $ 10,580.00 $ 1,870.00 Indirect factory labor $ 4,822 Indirect materials (factory) $ 5,811 Facilities Cost - Factory $ 9,105 Facilities Cost - Corporate $ 1,585 Equipment costs - Factory $ 5,735 Equipment costs - Corporate $ 845Job 599 (650 units) was completed during January. Job 600 was still in progress.
1. In January, what was the total cost incurred for Job 599? 2. What was the total cost of Job 599? 3. What was the cost per unit for Job 599? 4. What was the total cost of Job 600 through 1/31/18? 5. What was the total amount for MOH applied during January? 6. What is the balance in the MOH account at 1/31/17?Please show work, so I can learn how to solve the probelm's. Thanks
Explanation / Answer
Solution 1:
Pre determined overhead rate = $348,750/15000 = $23.25 per hour
Total cost incurred on Job 599 in january = Direct material consumed + Direct labor cost + applied MOH
Applied MOH on job 599 in january = $10,580 / 10 * $23.25 = $24,598.50
Total cost incurred on Job 599 in january = $12,900 + $10,580 + $24,598.50 = $48,078.50
Solution 2:
Total cost of job 599 = Opening WIP + Cost incurred in january = $16,720 + $48,078.50 = $64,798.50
Solution 3:
Cost per unit of job 599 = Total cost of job 599 / nos of units in job 599 = $64,798.50 / 650 = $99.69
Solution 4:
Total cost incurred on Job 600 = Direct material consumed + Direct labor cost + applied MOH
Applied overhead on job 600 = $1,870 / 10*$23.25 = $4,347.75
Total cost incurred on job 600 = $8,600 + $1,870 +$4,347.75 = $14,817.75
Solution 5:
Total amount of MOH applied during january = $24,598.50 + $4,347.75 = $28,946.25
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