- Assignment 3 Question 1 The Polar Company Uses Job Order Costing System The Following Data Relate To The First Month Of 1 (45.91 KiB) Viewed 47 times
- Assignment 3 Question 1 The Polar Company Uses Job Order Costing System The Following Data Relate To The First Month Of 2 (45.91 KiB) Viewed 47 times
- Assignment 3 Question 1 The Polar Company Uses Job Order Costing System The Following Data Relate To The First Month Of 3 (58.49 KiB) Viewed 47 times
- Assignment 3 Question 1 The Polar Company Uses Job Order Costing System The Following Data Relate To The First Month Of 4 (60.28 KiB) Viewed 47 times
Assignment 3 QUESTION 1 The Polar company uses job-order costing system. The following data relate to the first month of the company's fiscal year a. Raw materials purchased on account, $210,000 b. Raw materials issued to production, $190,000 ($178,000 direct materials and $12,000 indirect materials). C. Direct labour cost incurred, $90,000; indirect labour cost incurred, $110,000 d. Depreciation recorded on factory equipment, $40,000 e. Other manufacturing overhead cost incurred during the month is $70,000 [credit] f. Company applies manufacturing overhead based on direct labour. Budgeted cost for direct labour cost is $110,000 and estimated direct hours worked during the month are 25000 hours. Actual hours worked was 20,000 hours. Calculate the PR and journalize the applied cost 8. Production orders costing $520,000 were completed and transferred to finished goods h. Production costing $480,000 were shipped to customers during the month. The company sells its goods 25% above cost. The goods were sold on credit
Hogle company applies overhead cost to jobs on basis of machine hours worked. For the current year, the company estimated that it would work 75,000 hours and incur $450,000 in manufacturing overhead cost. The following transactions are recorded for the year A. Raw materials were purchased on account, $410,000 B. Raw materials were requisitioned for use in production, $380,000 (360,000 direct materials and $20,000 indirect materials) C. The following costs were incurred for employee services: direct labour,$75,000; nindirect labour, $110,000; sales commission, $90,000; and admin salaries $200,000 D. Sales travel costs were incurred,$17,000. E. Utility costs (factory] =$43,000 F. Advertising cost incurred = $180,000 G. Depreciation was recorded for the year, $350,000 (80% for factory and 20% for selling & admin expenses) H. Insurance for the year =$10,000 (70% for factory and the rest for selling and admin expenses) 1. Manufacturing overhead was applied to production. Company worked for 80,000 machine hours) J. Goods costing $900,000 to manufacture were completed during the year K. Goods costing $870,000 were sold for $1,500,000
SOLUTION DEBIT $ CREDIT $ 410,000 410,000 360,000 20,000 380,000 75,000 110,000 90,000 200,000 475,000 17,000 А Raw materials Accounts payable B WIP Man / overhead Raw materials с WIP MO Sales / com expenses Admin salaries Salaries /wages payable D Sales travel expense Accounts payable E MO Accounts payable F Advertising expense Accounts payable G MO Depreciation expense Accumulated depreciation H MO Insurance expense Prepaid insurance 17,000 43,000 43,000 180,000 180,000 280,000 70,000 350,000 7,000 3,000 10,000 1. Predetermined Rate = estimated MO/ estimated machine hours = 450,000 / 75,000 = $6.00 per MH