The Robbins Company manufactures special purpose machines to order.On January 1,there were two jobs in process,#705 and #706.The following costs were applied to these jobs in the prior year:

Job No. 705 Job No. 706

Direct material $ 5,000 $ 8,000

Direct labor 4,000 3,000

Overhead 4,400 3,300

Total $13,400 $14,300

During January,the following transactions took place: *Raw material costing $ \$ 40,000 $ was purchased on account. *Jobs $ \# 707, \# 708 $, and $ \# 709 $ were started and the following costswere applied to them

JOB

707 708 709

Direct materials $3,000 $10,000 $7,000

Direct labor 5,000 6,000 4,000

*Job $ \# 705 $ and Job $ \# 706 $ were completed after incuring additional dire ct labor costs of $ \$ 2,000 $ and $ \$ 4,000 $, respectivel *Wages paid to production employees churing J anuary tot ale $ \mathrm{d} \$ 25,000 $. *Depreciation for the month of Jamuary totaled $ \$ 10,000 $. *Utilities bills in the amount of $ \$ 10,000 $ were paidfor operations during December. *Utilities bills totaling $ \$ 12,000 $ were received for Januay operations. *Supplies costing $ \$ 2,000 $ were used. *Miscellaneous overhead expenses totaled $ \$ 24,000 $ for January Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs. Required: a. $\text { Determine the J anuary overhead rate }$ b. $\text { Determine the cost of eachjob }$ c. $\text { Prepare a statement of cost of goods manufactured }$

Question

The Robbins Company manufactures special purpose machines to order.On January 1,there were two jobs in process,#705 and #706.The following costs were applied to these jobs in the prior year:

	Job No. 705	Job No. 706
Direct material	$ 5,000	$ 8,000
Direct labor	4,000	3,000
Overhead	4,400	3,300
Total	$13,400	$14,300

During January,the following transactions took place: *Raw material costing $ \$ 40,000 $ was purchased on account. *Jobs $ \# 707, \# 708 $, and $ \# 709 $ were started and the following costswere applied to them

	JOB
	707	708	709
Direct materials	$3,000	$10,000	$7,000
Direct labor	5,000	6,000	4,000

*Job $ \# 705 $ and Job $ \# 706 $ were completed after incuring additional dire ct labor costs of $ \$ 2,000 $ and $ \$ 4,000 $, respectivel *Wages paid to production employees churing J anuary tot ale $ \mathrm{d} \$ 25,000 $. *Depreciation for the month of Jamuary totaled $ \$ 10,000 $. *Utilities bills in the amount of $ \$ 10,000 $ were paidfor operations during December. *Utilities bills totaling $ \$ 12,000 $ were received for Januay operations. *Supplies costing $ \$ 2,000 $ were used. *Miscellaneous overhead expenses totaled $ \$ 24,000 $ for January Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs. Required: a. $\text { Determine the J anuary overhead rate }$ b. $\text { Determine the cost of eachjob }$ c. $\text { Prepare a statement of cost of goods manufactured }$

Quizplus · Accepted Answer

The Answer of The Robbins Company manufactures special purpose machines to order.On January 1,there were two jobs in process,#705 and #706.The following costs were applied to these jobs in the prior year:

	Job No. 705	Job No. 706
Direct material	$ 5,000	$ 8,000
Direct labor	4,000	3,000
Overhead	4,400	3,300
Total	$13,400	$14,300

During January,the following transactions took place: *Raw material costing $ \$ 40,000 $ was purchased on account. *Jobs $ \# 707, \# 708 $, and $ \# 709 $ were started and the following costswere applied to them

	JOB
	707	708	709
Direct materials	$3,000	$10,000	$7,000
Direct labor	5,000	6,000	4,000

*Job $ \# 705 $ and Job $ \# 706 $ were completed after incuring additional dire ct labor costs of $ \$ 2,000 $ and $ \$ 4,000 $, respectivel *Wages paid to production employees churing J anuary tot ale $ \mathrm{d} \$ 25,000 $. *Depreciation for the month of Jamuary totaled $ \$ 10,000 $. *Utilities bills in the amount of $ \$ 10,000 $ were paidfor operations during December. *Utilities bills totaling $ \$ 12,000 $ were received for Januay operations. *Supplies costing $ \$ 2,000 $ were used. *Miscellaneous overhead expenses totaled $ \$ 24,000 $ for January Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs. Required: a. $\text { Determine the J anuary overhead rate }$ b. $\text { Determine the cost of eachjob }$ c. $\text { Prepare a statement of cost of goods manufactured }$

The Robbins Company Manufactures Special Purpose Machines to Order $40,000 \$ 40,000 $40,000

The Robbins Company Manufactures Special Purpose Machines to Order $\$ 40,000$