Question
acct 212 homework 3 chapter 19
1.
award:
3 out of
3.00 points
Exercise 19-4 Analysis of cost flows L.O. C2, P1, P2, P3
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
Job 102
Job 103
Job 104
Direct materials
$ 45,000
$ 64,000
$ 54,000
Direct labor
18,000
28,000
39,000
Overhead
7,740
12,040
16,770
Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,100; and overhead, $1,333. Jobs 103 and 104 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 are finished in June, and Job 104 is expected to be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months).
1.
What is the cost of the raw materials requisitioned in June for each of the three jobs? (Omit the “$” sign in your response.)
2.
How much direct labor cost is incurred during June for each of the three jobs? (Omit the “$” sign in your response.)
3.
What predetermined overhead rate is used during June? (Omit the “%” sign in your response.)
4.
How much total cost is transferred to finished goods during June? (Omit the “$” sign in your response.)
2.
award:
2 out of
2.00 points
Exercise 19-5 Overhead rate; costs assigned to jobs L.O. P3
In December 2010, Kent Computer’s management establishes the year 2011 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $729,300 of overhead costs and $510,000 of direct labor cost in year 2011. During March 2011, Kent began and completed Job No. 13-56.
1.
What is the predetermined overhead rate for year 2011? (Omit the “%” sign in your response.)
143 %
2.
Use the information on the following job cost sheet.
Determine the total cost of the job. (Round your answer to the nearest whole number. Omit the “$” sign in your response.)
3.
award:
1.34 out of
2.00 points
Exercise 19-6 Analysis of costs assigned to goods in process L.O. P3
Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following.
Date
Explanation
Debit
Credit
Balance
2011
Dec. 31
Direct materials cost
1,600,000
1,600,000
31
Direct labor cost
240,000
1,840,000
31
Overhead costs
560,000
2,400,000
31
To finished goods
2,311,000
89,000
1.
Determine the overhead rate used (based on direct material cost). (Omit the “%” sign in your response.)
2.
Only one job remained in the goods in process inventory at December 31, 2011. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to it? (Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)
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Worksheet
Difficulty: Medium
Exercise 19-6 Analysis of costs assigned to goods in process L.O. P3
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.
4.
award:
3 out of
3.00 points
Exercise 19-7 Cost flows in a job order cost system L.O. P1, P2, P3, P4
The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.
April 30
May 31
Inventories
Raw materials
$
46,000
$
56,000
Goods in process
9,500
19,600
Finished goods
60,000
34,200
Activities and information for May
Raw materials purchases (paid with cash)
184,000
Factory payroll (paid with cash)
200,000
Factory overhead
Indirect materials
13,000
Indirect labor
65,000
Other overhead costs
108,000
Sales (received in cash)
2,000,000
Predetermined overhead rate based on direct labor cost
55
%
Compute the following amounts for the month of May. (Input all amounts as positive values. Omit the “$” sign in your response.)
*Do not consider any underapplied or overapplied overhead.
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5.
award:
1.34 out of
2.00 points
Exercise 19-8 Journal entries for materials L.O. P1
The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.
April 30
May 31
Inventories
Raw materials
$
39,000
$
53,000
Goods in process
12,000
18,000
Finished goods
61,000
34,200
Activities and information for May
Raw materials purchases (paid with cash)
191,000
Factory payroll (paid with cash)
395,000
Factory overhead
Indirect materials
13,000
Indirect labor
78,000
Other overhead costs
101,500
Sales (received in cash)
1,280,000
Predetermined overhead rate based on direct labor cost
65
%
1.
Raw materials purchases for cash.
2.
Direct materials usage.
3.
Indirect materials usage.
Prepare journal entries for the above events for the month of May. (Omit the “$” sign in your response.)
eBook LinkView Hint #1
Worksheet
Difficulty: Medium
Exercise 19-8 Journal entries for materials L.O. P1
Learning Objective: 19-P1 Describe and record the flow of materials costs in job order cost accounting.
6.
award:
1.50 out of
2.00 points
Exercise 19-9 Journal entries for labor L.O. P2
The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.
April 30
May 31
Inventories
Raw materials
$
36,000
$
54,000
Goods in process
11,200
17,500
Finished goods
58,000
30,200
Activities and information for May
Raw materials purchases (paid with cash)
194,000
Factory payroll (paid with cash)
390,000
Factory overhead
Indirect materials
14,000
Indirect labor
70,000
Other overhead costs
98,500
Sales (received in cash)
1,210,000
Predetermined overhead rate based on direct labor cost
65
%
1.
Factory payroll costs in cash.
2.
Direct labor usage.
3.
Indirect labor usage.
Prepare journal entries for the above events for the month of May. (Omit the “$” sign in your response.)
eBook LinkView Hint #1
Worksheet
Difficulty: Medium
Exercise 19-9 Journal entries for labor L.O. P2
Learning Objective: 19-P2 Describe and record the flow of labor costs in job order cost accounting.
7.
award:
1.50 out of
2.00 points
Exercise 19-10 Journal entries for overhead L.O. P3
The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.
April 30
May 31
Inventories
Raw materials
$
39,000
$
50,000
Goods in process
10,200
20,500
Finished goods
66,000
36,600
Activities and information for May
Raw materials purchases (paid with cash)
189,000
Factory payroll (paid with cash)
415,000
Factory overhead
Indirect materials
14,000
Indirect labor
75,000
Other overhead costs
97,500
Sales (received in cash)
1,270,000
Predetermined overhead rate based on direct labor cost
65
%
1.
Factory overhead excluding indirect materials and indirect labor (record credit to Other Accounts).
2.
Application of overhead to goods in process.
Prepare journal entries for the above events for the month of May. (Omit the “$” sign in your response.)
eBook LinkView Hint #1
Worksheet
Difficulty: Medium
Exercise 19-10 Journal entries for overhead L.O. P3
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.
Exercise 19-13 Factory overhead computed, applied, and adjusted L.O. P3, P4
[The following information applies to the questions displayed below.]
In December 2010, Ultravision established its predetermined overhead rate for movies produced during year 2011 by using the following cost predictions: overhead costs, $2,162,000, and direct labor costs, $470,000. At year end 2011, the company’s records show that actual overhead costs for the year are $656,200. Actual direct labor cost had been assigned to jobs as follows.
Movies completed and released
$
100,000
Movies still in production
45,000
Total actual direct labor cost
$
145,000
Section Break
Difficulty: Medium
Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.
Exercise 19-13 Factory overhead computed, applied, and adjusted L.O. P3, P4
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.
9.
award:
1 out of
1.00 point
Exercise 19-13 Part 1
1.
Determine the predetermined overhead rate for year 2011. (Omit the “%” sign in your response.)
Predetermined overhead rate
460 %
eBook Links (2)View Hint #1
Worksheet
Difficulty: Medium
Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.
Exercise 19-13 Part 1
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.
10.
award:
1 out of
1.00 point
Exercise 19-13 Part 2
2.
Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate in the T-account provided below. (Omit the “$” sign in your response.)
eBook Links (2)View Hint #1
Worksheet
Difficulty: Medium
Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.
Exercise 19-13 Part 2
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.
11.
award:
1 out of
1.00 point
Exercise 19-13 Part 3
3.
Determine whether overhead is overapplied or underapplied (and the amount) during the year. (Input all amounts as positive values. Omit the “$” sign in your response.)
eBook Links (2)View Hint #1
Worksheet
Difficulty: Medium
Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.
Exercise 19-13 Part 3
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.
12.
award:
2 out of
2.00 points
Exercise 19-13 Part 4
4.
Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. (Omit the “$” sign in your response.)
eBook Links (2)View Hint #1
Worksheet
Difficulty: Medium
Learning Objective: 19-P4 Determine adjustments for overapplied and underapplied factory overhead.
Exercise 19-13 Part 4
Learning Objective: 19-P3 Describe and record the flow of overhead costs in job order cost accounting.