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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 4
Applying Overhead to Jobs, Costing Jobs
Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,640 to date.
During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows:
Overhead is applied to production at the rate of 80% of direct labor cost. Job 877 was completed on October 28, and the client was billed at cost plus 50%. All other jobs remained in process.
Required:
1. Prepare a brief job-order cost sheet showing the October 1 balances of all four jobs, plus the direct materials and direct labor costs during October. ( Note : There is no need to calculate applied overhead at this point or to total the costs.)
2. Calculate the overhead applied to each job during October.
3. Calculate the balance in Work in Process on October 31.
4. What is the price of Job 877?
Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,640 to date.
During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as follows:
Overhead is applied to production at the rate of 80% of direct labor cost. Job 877 was completed on October 28, and the client was billed at cost plus 50%. All other jobs remained in process.
Required:
1. Prepare a brief job-order cost sheet showing the October 1 balances of all four jobs, plus the direct materials and direct labor costs during October. ( Note : There is no need to calculate applied overhead at this point or to total the costs.)
2. Calculate the overhead applied to each job during October.
3. Calculate the balance in Work in Process on October 31.
4. What is the price of Job 877?
Explanation
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Job order costing method is used to dete...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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