Sweeten Company_Job order costing

$14.00

Description

Sweeten Company had no
jobs in progress at the beginning of March and no beginning inventories.

It started only two
jobs during March—Job P and Job Q. Job P was completed and sold by the end of
the March and Job Q was incomplete at the end of the March.

The company uses a
plant wide predetermined overhead rate based on direct labor-hours.

The following
additional information is available for the company as a whole and for Jobs P
and Q (all data and questions relate to the month of March):

Estimated total fixed manufacturing
overhead $10,000

Estimated variable manufacturing overhead per
direct labor-hour $ 1.00

Estimated total direct labor-hours to be
worked 2,000

Total actual manufacturing overhead costs
incurred $ 12,500 .png” alt=”—“>

Job P Job Q

Direct materials $13,000 $8,000

Direct labor cost $21,000 $7,500

Actual direct labor-hours worked 1,400
500

8.
Assume the ending raw materials inventory is $1,000 and the company does not
use any indirect materials. Prepare a schedule of cost of goods manufactured

9. Assume the ending raw materials
inventory is $1,000 and the company does not use any indirect materials.
Prepare the journal entry to transfer costs from Work in Process to Finished
Goods.

10. Assume the ending raw materials
inventory is $1,000 and the company does not use any indirect materials. Prepare
a completed Work in Process T-account including the beginning and ending
balances and all debits and credits posted to the account.

11. Assume the
ending raw materials inventory is $1,000 and the company does not use any
indirect materials. Prepare a schedule of cost of goods sold.

12. Assume the ending raw materials
inventory is $1,000 and the company does not use any indirect materials.Prepare the journal
entry to transfer costs from Finished Goods to Cost of Goods Sold.

13. What is the amount of
underapplied or overapplied overhead?

14.Prepare
the journal entry to close the amount of underapplied or overapplied overhead
to Cost of Goods Sold.

15. Assume that Job P
includes 20 units that each sell for $3,000 and that the company’s selling and
administrative expenses in March were $14,000. Prepare an absorption costing
income statement for March.

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