3-13 - 2/1/12 McGraw-Hill's Connect - Ebook 1/13

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2/1/12 McGraw-Hill's Connect - Ebook 1/13 connect.mcgraw-hill.com/connect/hmEBook.do?setTab=sectionTabs Managerial Accounting, eBook 14/e Content Chapter3: Job-Order Costing Exercises All applicable exercises are available with McGraw-Hill's Connect Accounting . EXERCISE 3-1 Compute the Predetermined Overhead Rate [LO1 ] Logan Products computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that 40,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $466,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $713,400 and its actual total direct labor was 41,000 hours. Required: Compute the company's predetermined overhead rate for the year. EXERCISE 3-2 Apply Overhead [LO2 ] Westan Corporation uses a predetermined overhead rate of $23.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $277,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead costs of $266,000 and 12,600 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead that would have been applied to all jobs during the period. EXERCISE 3-3 Computing Job Costs [LO3 ] Weaver Company's predetermined overhead rate is $18.00 per direct labor-hour and its direct
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2/1/12 McGraw-Hill's Connect - Ebook 2/13 connect.mcgraw-hill.com/connect/hmEBook.do?setTab=sectionTabs labor wage rate is $12.00 per hour. The following information pertains to Job A-200: Required: 1. What is the total manufacturing cost assigned to Job A-200? 2. If Job A-200 consists of 50 units, what is the average cost assigned to each unit included in the job? EXERCISE 3-4 Prepare Journal Entries [LO4 ] Kirkaid Company recorded the following transactions for the just completed month. a. $86,000 in raw materials were purchased on account. b. $84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $197,000 were incurred. Required: Record the above transactions in journal entries. EXERCISE 3-5 Prepare T-Accounts [LO5 , LO7 ] Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories. a.
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