3.17.2Job Costing extra egs solns

3.17.2Job Costing extra egs solns - Job Costing Extra...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Job Costing Extra Problems
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 Problem 1: Paxton Company Budgeted direct labour hours: 15 000 Budgeted overhead: $180 000 Cost information for Job K456 (completed during year): Direct materials cost $2 340 Direct labour cost $3 600 Average wage rate $10 per hour
Image of page 2
3 Actual direct labour hours: 15 400 Actual overhead costs for the year: Equipment lease $ 5 000 Depreciation $ 20 000 Indirect labour $100 000 Utilities $ 15 000 Other $ 45 000 Total $185 000
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 Required 1. Calculate the predetermined overhead rate for the year. 2. Calculate the total cost of Job K456. 3. Is overhead over or under- applied? By how much?
Image of page 4
5 Problem 1: Solution 1. Predetermined overhead rate: $180 000 / 15 000 = $12 per direct labour hour 2. Job K456 Direct materials $ 2 340 Direct labour $ 3 600 (= $10 x 360 DLH) Overhead $ 4 320 (= $12 x 360 DLH) Total $10 260 3. Actual overhead: $185 000 Applied overhead: $184 800 (=$12 x 15 400 DLH) Under-applied by $ 200
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6 Problem 2: Stanley Company $ Sales 99 500 Direct labour 31 500 Factory insurance 1 050 Commissions paid 5 500 Factory supervision 6 675 Interest on loan 2 400 Admin. expenses 6 125 Material handling 11 235 Purchases of materials 45 000 Purchases of supplies 2 500
Image of page 6
7 Inventories $ Materials, 1 Jan 2008 10 425 Materials, 31 Dec 2008 28 500 Supplies, 1 Jan 2008 4 900 Supplies, 31 Dec 2008 3 150 Work-in-process, 1 Jan 2008 37 500 Work-in-process, 31 Dec 2008 42 750 Finished goods, 1 Jan 2008 20 055 Finished goods, 31 Dec 2008 12 750
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
8 Budgeted manufacturing overhead costs: $25 000 Estimated direct labour hours: 1 500 Actual direct labour hours: 1 260 Tax rate: 30% Required: 1. Prepare a statement of cost of goods manufactured 2. Prepare an income statement
Image of page 8
Stanley Company Statement of Cost of Goods Manufactured For the year ended 31 December 2008 $ $ $ Direct materials: Materials, 1 Jan 10 425 Add: Purchases 45 000
Image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern