Review Problem- Job-Order Costing

Review Problem- Job-Order Costing - McGraw-Hill's Connect -...

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9/11/09 7:23 PM McGraw-Hill's Connect - Ebook Page 1 of 3 http://connect.mcgraw-hill.com/connect/hmEBook.do?setTab=sectionTabs Managerial Accounting EBook 13/e Content Chapter3: Systems Design: Job-Order Costing Review Problem: Job-Order Costing Hogle Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal year, the company's inventory balances were as follows: The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company estimated that it would work 75,000 machine-hours and incur $450,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account, $410,000. b. Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials). c. The following costs were accrued for employee services: direct labor, $75,000; indirect labor, $110,000; sales commissions, $90,000; and administrative salaries, $200,000. d. Sales travel costs were $17,000.
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Review Problem- Job-Order Costing - McGraw-Hill's Connect -...

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