ACTBA3_Assignment #3.docx - ACTBA3: JOB ORDER COSTING...

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ACTBA3: JOB ORDER COSTINGAssignment #3:Theories:1.Why aren’t actual manufacturing overhead costs traced to jobs just as direct materials and directlabor costs are traced to jobs?2.Why do companies use predetermined overhead rates rather than actual manufacturingoverhead costs to apply overhead to jobs?3.Explain how a sales order, a production order, a materials requisition form, and a labor timeticket are involved in producing and costing products.4.What adjustment is made for underapplied overhead on the schedule of cost of goods sold?What adjustment is made for overapplied overhead?5.What is a plantwide overhead rate? Why are multiple overhead rates, rather than a plantwideoverhead rate, used in some companies?Exercises:1.Mickley Company’s predetermined overhead rate is $14.00 per direct labor-hour and its direct laborwage rate is $12.00 per hour. The following information pertains to Job A-500:Direct materials . . . . . . . . . . . . . $230Direct labor . . . . . . . . . . . . . . . . $108Required:1. What is the total manufacturing cost assigned to Job A-500?2. If Job A-500 consists of 40 units, what is the average cost assigned to each unit included inthe job?2.Larned Corporation recorded the following transactions for the just completed month.a. $80,000 in raw materials were purchased on account.b. $71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000was for direct materials and the remainder was for indirect materials.c. Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct laborand the remainder was for indirect labor.d. Additional manufacturing overhead costs of $175,000 were incurred.Required: Record the above transactions in journal entries.3.Jurvin Enterprises recorded the following transactions for the just completed month. Thecompany had no beginning inventories.a. $94,000 in raw materials were purchased for cash.

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Term
Summer
Professor
N/A
Tags
Wage labour, Cutting Department

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