CHAPTER 2PROBLEMS: SET B P2-1B Pedriani Company uses a job


Question Description:

25

c02_ProblemsSetB.indd I need solution for one  JOB ORDER COSTING question P2-5B attached herewith Bell Company’s fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year. ch02.pdf CHAPTER 2—PROBLEMS: SET B P2-1B Pedriani Company uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2014, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory. There was a $5,000 balance in the Raw Materials Inventory account. During the month of January, the company began production on Jobs 26 and 27, and completed Jobs 25 and 26. Jobs 23 and 25 were sold on account during the month for $63,000 and $74,000, respectively. The following additional events occurred during the month. Prepare entries in a job order cost system and job cost sheets. (LO 2, 3, 4, 5, 6), AP 1. Purchased additional raw materials of $45,000 on account. 2. Incurred factory labor costs of $33,500. Of this amount, $7,500 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $10,000; indirect labor $9,500; depreciation expense on equipment $12,000; and various other manufacturing overhead costs on account $11,000. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 25 26 27 $ 5,000 17,000 13,000 $ 3,000 12,000 9,000 5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours incurred on each job were as follows: Job No. 25, 200; Job No. 26, 800; and Job No. 27, 600. Instructions (a) Calculate the predetermined overhead rate for the year 2014, assuming Pedriani Company estimates total manufacturing overhead costs of $440,000, direct labor costs of $300,000, and direct labor hours of 20,000 for the year. (b) Open job cost sheets for Jobs 25, 26, and 27. Enter the January 1 balances on the job cost sheet for Job No. 25. (c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary. (e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month. (f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month. (g) What is the balance in the Work in Process Inventory account at the end of the month? What does this balance consist of? (h) What is the amount of over- or underapplied overhead? P2-2B For the year ended December 31, 2014, the job cost sheets of Dosey Company contained the following data. Job Number Explanation Direct Materials Direct Labor Manufacturing Overhead Total Costs 7650 Balance 1/1 Current year’s costs $18,000 32,000 $20,000 36,000 $25,000 45,000 Balance 1/1 Current year’s costs 12,000 30,000 16,000 40,000 20,000 50,000 48,000 120,000 7652 Current year’s costs 35,000 68,000 85,000 Prepare entries in a job order cost system and partial income statement. $ 63,000 113,000 7651 (e) Job 25, $37,400 Job 26, $46,600 188,000 (LO 2, 3, 4, 5, 6), AN P-1 P-2 Problems: Set B Other data: 1. Raw materials inventory totaled $20,000 on January 1. During the year, $100,000 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7648 for $93,000 and Job No. 7649 f…

Answer

25