he predetermined overhead application ar Mav cost of jobs completed in May? Chap
ID: 2563781 • Letter: H
Question
he predetermined overhead application ar Mav cost of jobs completed in May? Chapter S Job Onder Costing ha What was th DLOH incurred cWhat was the total cost of jobs con o LO.4 (Journal entries; costich produces What was the balance in WIP Inventory at the end of in zed steel Journal entries; cost accumulation) The following costs were in s 76,000 February 2013 by Container Corp,W Direct material purchased on account $44,800 7,200 Direct material used for jobs: Job #217 Job #218 Other jobs 3.600 105,600 $10,400 14,000 19,600 Direct labor costs for month: Job #217 Job #218 44,000 220,000 Other jobs Actual overhead costs for February The balance in Work in Process Inventory on February 1 was $16,800, which consi ors 11,200 for Job 217 and S5,000 fr Job #218. The February beginning bala Direct Material Inventory was S44,600. Actual overhead is applied to jobs at a ra $4. 95 per dollar ofdirect labor cost. Job #217 was completed and transferr to Fin- ished Goods Inventory during February. Job #217 was delivered to the cus agreed-upon price of cost plus 35 percent. a. Prepare journal entries to record the preceding information. b. Determine the February ending balance in WIP Inventory. How much of this bal. ance relates to Job #218? L0.4 (Cost accumulation) Blaine Corp. makes floats for Mardi Gras in New Orle The company's fiscal year ends on March 31. On January 1, 2013, the company's WIP nventory account appeared as follows ans. Work in Process Inventory ginning balance ect material 916,650 Cost of completed jobs 589,670 159,600 127,680 ed overheadExplanation / Answer
16.a
Journal entries:
B.
Ending WIP = beginning WIP + current costs - cost of job 217 completed
=$16,800+$105,600+$44,000+$217,800-$117,880
=$266,320
Ending balance in job 218 =$5600+$7200+$14000+$69,300
=$96,100
Account title Debit Credit Raw material inventory $76,000 Account payable $76,000 (To record purchase of raw material) WIP - Job 217 $44,800 WIP - Job 218 $7,200 WIP - other Jobs $53,600 Direct material inventory $105,600 (To record direct material used) WIP - Job 217 $10,400 WIP - Job 218 $14,000 WIP - other Jobs $19,600 Cash(or wages payable) $44,000 (To record direct labour used) Manufacturing overhead $220,000 Various account $220,000 (To record actual manufacturing overhead) WIP - Job 217 $51,480 WIP - Job 218 $69,300 WIP - other Job $97,020 Manufacturing overhead(44000×4.95) $217,800 (To record applied manufacturing overhead) Finished Goods inventory $117,880 WIP inventory - Job 217(11200+44800+10400+51480) $117,880 (To transfer of job 217 to finished good )Related Questions
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