Denise Seals - Week Three Excerise

Denise Seals - Week Three Excerise - Denise Seals...

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Denise Seals Managerial Accounting MBAC5213OL Dr. Lemler March 4, 2009 Week 3 – Exercises 6.7. ABC and Job –Order Costing LO2 Job # 70 Job # 71 Job #72 Balance, 7/1 \$ 25,000 \$ 0 \$ 0 Direct materials \$ 12,900 \$ 9,900 \$ 35,350 Direct labor \$ 20,000 \$ 6,500 \$ 13,000 Machine hours 250 200 1,200 Machine moves 50 10 200 Purchase orders 10 40 10 1. Prepare job-order cost sheet for each job showing all costs through July 31. Applied overhead calculations Job 70: Direct material \$ 12,900 Direct labor \$ 20,000 Machine hours 250 X \$ 2 \$ 500 Machine moves 50 X \$ 25 \$ 1,250 Purchase orders 10 X \$ 40 \$ 400 Total 310 \$ 35,050 Predetermined overhead rate: 113.06 Applied overhead: 113.06 X 310 = \$ 35,050 Applied overhead calculations Job 71: Direct material \$ 12,900 Direct labor \$ 20,000 Machine hours 200 X \$ 2 \$ 400 Machine moves 10 X \$ 25 \$ 250 Purchase orders 40 X \$ 40 \$ 1,600

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Total 350 \$ 35,150 Predetermined overhead rate: 100.43 Applied overhead: 100.43 X 350 = \$ 35,150 Applied overhead calculations Job 72: Direct material \$ 12,900 Direct labor \$ 20,000 Machine hours 1,200 X \$ 2 \$ 2,400 Machine moves 200 X \$ 25 \$ 5,000 Purchase orders 10 X \$ 40 \$ 400 Total 1,410 \$ 40,700 Predetermined overhead rate: 28.87 Applied overhead: 28.87 X 1,410 = \$ 40,700 Job Name: Job # 70 Date Started: July 1, 2009 Date Completed: July 31, 2009 Direct material \$ 12,900 Direct labor \$ 20,000 Applied overhead \$ 35,050 Total cost \$ 67,950 / number of units / 310 Unit cost \$ 219.19 Job Name: Job # 71 Date Started: July 1, 2009 Date Completed: July 31, 2009 Direct material \$ 9,900 Direct labor \$ 6,500 Applied overhead \$ 35,150
Total cost \$ 51,550 / number of units 350 Unit cost \$ 147.29 Job Name: Job # 72 Date Started: July 1, 2009 Date Completed: July 31, 2009 Direct material \$ 35,350 Direct labor \$ 13,000 Applied overhead \$ 40,700 Total cost \$ 89,050 / number of units / 1,410 Unit cost \$ 63.16 2. Calculate the balance in Work in Process on July 31. Job Name: Job # 72 Date Started: July 1, 2009 Date Completed: July 31, 2009 Direct material \$ 12,900 Direct labor \$ 20,000 Machine hours 1,200 X \$ 2 \$ 2,400 Machine moves 200 X \$ 25 \$ 5,000 Purchase orders 10 X \$ 40 \$ 400 Total 1,410 \$ 40,700

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3. Calculate the balance in Finished Goods on July 31. Job-Order Cost Sheet
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Denise Seals - Week Three Excerise - Denise Seals...

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