3.17.2Job Costing extra egs solns

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

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1 Job Costing Extra Problems
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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
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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
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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?
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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
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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
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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
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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
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Stanley Company Statement of Cost of Goods Manufactured For the year ended 31 December 2008 $ $ $ Direct materials: Materials, 1 Jan 10 425 Add: Purchases
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3.17.2Job Costing extra egs solns - Job Costing Extra...

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