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
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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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