Chapter+5+Review+Exercises+Solution

Chapter+5+Review+Exercises+Solution - ACC 2362 - Exam 2...

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ACC 2362 - Exam 2 Review Exercises Chapter 5 Brandt Company produces metal sculptures. Overhead is applied on the basis of DL hours. Estimated OH at the beginning of the year is $10,000 and estimated DL hours are 5,000. Actual OH is $15,000. On Jan 1, Job # 35 was in process and had a balance of $870. During January three more jobs were started and the following material and labor costs were incurred. Direct Labor is paid at a rate of $10 per DLH. Job #35 Job #36 Job #37 Job #38 DM $400 $150 $200 $800 DL $300 $260 $150 $650 Job 37 was completed and sold during January for cost plus 50%. Job 35 & 38 were completed. 1) What is the predetermined OH rate? What is the amount of applied OH for each job? $10,000 / 5,000 DLH = $2.00 DLH Job #35 Job #36 Job #37 Job #38 Beg Bal 1/1 $870 DM $400 $150 $200 $800 DL $300 $260 $150 $650 Ap OH $60 $52 $30 $130 Total Job Cost $1,630 $462 $380 $1,580 2) At Jan 31st what is the amount of WIP? FG? WIP
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This note was uploaded on 10/13/2011 for the course ACCT 2361 taught by Professor Severance during the Spring '08 term at Texas State.

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