222 CH 2 HW Solutions 5th edition

222 CH 2 HW Solutions 5th edition - CHAPTER 2 Job Order...

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CHAPTER 2 Job Order Costing Homework Solutions ANSWERS TO QUESTIONS (3, 13, 17) 3. A job order cost system is most likely to be used by a company that receives special orders, or custom builds, or produces heterogeneous items or products; that is, the product manufactured or the service rendered is tailored to the customer or client’s requests, needs, or situation. Examples of industries that use job order systems are custom home builders, commercial printing companies, motion picture companies, construction contractors, repair shops, accounting and law firms, hospitals, shipbuilders, and architects. 13. Disagree. Actual manufacturing overhead cannot be determined until the end of a period of time. Consequently, there could be a significant delay in assigning overhead and in determining the total cost of the completed job. 17. Underapplied overhead means that the overhead assigned to work in process is less than the overhead incurred. Overapplied overhead means that the overhead assigned to work in process is greater than the overhead incurred. Manufacturing Overhead will have a debit balance when overhead is underapplied and a credit balance when overhead is overapplied. SOLUTIONS TO BRIEF EXERCISES (3, 4, 5) BRIEF EXERCISE 2-3 Jan. 31 Work in Process Inventory. .................................. 2,800 Manufacturing Overhead. ..................................... 600 Raw Materials Inventory. ............................... 3,400 BRIEF EXERCISE 2-4 Jan. 31 Work in Process Inventory. .................................. 4,200 Manufacturing Overhead. ..................................... 800 Factory Labor. ................................................ 5,000
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BRIEF EXERCISE 2-5 Job 1 Job 2 Date Direct Materials Direct Labor Date Direct Materials Direct Labor 1/31 1/31 900 1,200 1/31 1/31 1,200 1,600 Job 3 Date Direct Materials Direct Labor 1/31 1/31 700 1,400 SOLUTIONS FOR DO IT! REVIEW EXERCISES (2, 3) DO IT! 2-2 The three summary entries are: Work in Process Inventory ($7,200 + $9,000). .................. 16,200 Raw Materials Inventory. ............................................. 16,200 (To assign materials to jobs) Work Process Inventory ($4,000 + $6,000). ....................... 10,000 Factory Labor. .............................................................. 10,000 (To assign labor to jobs) Work in Process Inventory ($5,200 + $7,800). .................. 13,000 Manufacturing Overhead. ........................................... 13,000 (To assign overhead to jobs)
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DO IT! 2-3 Finished Goods Inventory. ................................................. 100,000 Work in Process Inventory. ......................................... 100,000
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222 CH 2 HW Solutions 5th edition - CHAPTER 2 Job Order...

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