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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 Job #36 \$462 FG Job #35 \$1,630 Job #38 \$1,580 \$3,210 CGS Job #37 \$380 3) What is the amount of sales revenue? CGS Job #37 \$380 \$380 x 1.5 = \$570 Mark up 50% \$190 \$570 Estimated cost and operating data for three companies for the upcoming year follow: Company A B C Direct Labor Hours 60,000 30,000
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