Chapter 2 Job Order Costing(FILEminimizer)

Chapter 2 Job Order Costing(FILEminimizer) - Exercises: Set...

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Exercises: Set B 1 EXERCISES: SET B E2-1B The gross earnings of the factory workers for Bumbrey Company during the month of January are $56,000. The employer’s payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer on this payroll are $4,000. Of the total accumulated cost of factory labor, 85% is related to direct labor and 15% is attributable to indirect labor. Instructions (a) Prepare the entry to record the factory labor costs for the month of January. (b) Prepare the entry to assign factory labor to production. E2-2B March Manufacturing uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,200. During May, a summary of source documents reveals the following. Materials Labor Job Number Requisition Slips Time Tickets 429 $2,500 $2,200 430 3,500 3,000 431 4,400 $10,400 7,600 $12,800 General use 1,000 1,200 $11,400 $14,000 March Manufacturing applies manufacturing overhead to jobs at an overhead rate of 75% of di- rect labor cost. Job No. 429 is completed during the month. Instructions (a) Prepare summary journal entries to record: (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429. (b) Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. E2-3B A job order cost sheet for Brett Company is shown below. Prepare entries for factory labor. (SO 2, 3) Prepare journal entries for manufacturing costs. (SO 2, 3, 4, 5) Job No. 92 For 2,000 Units Direct Direct Manufacturing Date Materials Labor Overhead Beg. bal. Jan. 1 4,000 6,000 4,500 8 6,000 12 8,000 5,600 25 2,000 27 4,000 2,800 12,000 18,000 12,900 Cost of completed job: Direct materials $12,000 Direct labor 18,000 Manufacturing overhead 12,900 Total cost $42,900 Unit cost ($42,900 ± 2,000) $21.45 Instructions (a) On the basis of the foregoing data answer the following questions. (1) What was the balance in Work in Process Inventory on January 1 if this was the only un- finished job? (2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (b) Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92. Analyze a job cost sheet and prepare entries for manufactur- ing costs. (SO 2, 3, 4, 5)
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2 Chapter 2 Job Order Costing E2-4B Manufacturing cost data for Pace Company, which uses a job order cost system, are presented below. Case A Case B Case C Direct materials used $ (a) $ 78,000 $ 72,600 Direct labor 50,000 120,000 (h) Manufacturing overhead applied 40,000 (d) (i) Total manufacturing costs 135,650 (e) 213,000 Work in process 1/1/08 (b) 15,500 23,000 Total cost of work in process 211,500 (f) (j) Work in process 12/31/08 (c) 11,800 (k) Cost of goods manufactured 192,300 (g) 222,000 Instructions Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same.
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Chapter 2 Job Order Costing(FILEminimizer) - Exercises: Set...

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