coursehero_chapters 1and2 problems

coursehero_chapters 1and2 problems - PROBLEM 2-16B Applying...

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PROBLEM 2-16B Applying Overhead in a Service Company; Journal Entries (LO4, LO5, LO7) CHECK FIGURE (3) Balance in WIP: $3,600 Mortimer and Sons uses a job-order costing system to track the costs of its landscaping projects. The company provides garden design and installat The table below provides data concerning the three landscaping projects that were in progress during March. There was no work in process at the b Project Alpha Beta Gamma Designer-hours 25 30 15 Direct materials cost $2,300 $2,000 $900 Direct labor cost $4,800 $5,100 $1,800 Required: 1 Compute the amount of overhead cost that would have been charged to each project during March. 2 Prepare a journal entry showing the completion of the Alpha and Beta projects and the transfer of costs to the Completed Projects (i 3 What is the balance in the Work in Process account at the end of the month? 4 What is the balance in the Overhead account at the end of the month? What is this balance called? Project Alpha Beta Gamma Designer-hours 25 30 15 Direct materials cost $2,300 $2,000 $900 Direct labor cost $4,800 $5,100 $1,800 1 Overhead ($60/hr) 1500 1800 900 $60 x 25hrs = 1500 $60 x 30hrs = 1800 $60 x 15hrs = 900 total job cost $8,600 $8,900 $3,600 $21,100 $17,500 2 Finished Goods Inventory 17500 Work in Process Inventory 17500 3 Beginning work in process 0 4 Overhead Actual overhead costs were $6,000 for March. Overhead costs are applied to projects on the basis of designer-hours since most of the overhead is related to the costs of the garden design studio. The predetermined overhead rate is $60 per designer-hour. The Alpha and Beta projects were completed in March; the Gamma project was not completed by the end of the month.
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Add: Costs added to WIP 21100 total costs during period 21100 6000 Minus: Jobs completed 17500 4200 Ending WIP inventory 3600 1800 Underapplied overhead 1500 1800 900 add the 3 overhead amounts together
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tion services for its clients. beginning of March. (i.e., Finished Goods) account.
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PROBLEM 2-17B Departmental Overhead Rates (LO2, LO3, LO5) CHECK FIGURE (2) Overhead applied to Job L26: $1,520 Department Cutting Finishing Direct labor-hours 1,300 12,000 Machine-hours 35,000 9,000 Manufacturing overhead cost $315,000 $182,000 Direct labor cost $10,000 $140,000 Required: 1 Compute the predetermined overhead rate to be used in each department. 2
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coursehero_chapters 1and2 problems - PROBLEM 2-16B Applying...

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