Materials purchased, Cost Accounting

The Clash Company uses Normal Job-Order Costing in its individual production department.  Overhead is applied to jobs by a predetermined rate, which is depend on machine hours.  The Company started business on December 1, 2011.  The only job began into process during December was Job 45.  During December the Company purchased direct materials with a total cost of $15,000.  Of this total for direct materials, $2,500 was used on Job 45.   The Company also charged a total of $7,500 in conversion costs (direct labor + overhead) to Job 45 during December.  Job 45 was NOT finished as of the finished of December and no other jobs were worked on during the month.  There was no underapplied or overapplied overhead for December.  

The following transactions happend during 2012.

1.      Estimated overhead for 2012 is $384,000. The estimated machine hours for 2012 total 24,000.

2.      Direct materials purchased during 2012 cost a total of $150,000.


Task:

A.    Compute the ending balances in Materials Inventory and Work In Process Inventory as of December 31, 2011.
B.    Without preparing a schedule, what is the Cost of Good Manufactured for December 2011?

Posted Date: 3/20/2013 5:56:26 AM | Location : United States







Related Discussions:- Materials purchased, Assignment Help, Ask Question on Materials purchased, Get Answer, Expert's Help, Materials purchased Discussions

Write discussion on Materials purchased
Your posts are moderated
Related Questions
Describe briefly the possible causes of: (i)   the material usage variance, (ii)  the labour rate variance, (iii)  the sales volume profit variance.

what is rowan incentive system


Absorption Costing and Marginal Costing Product costs are costs identified along with goods produced or purchased for resale. That costs are initially identified like part of

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $550,000; M

Series Arithmetic Mean Standard Deviation   Small-company stocks 15.9  % 32.8  %   Large-company

Wayne Company's beginning and ending inventories for the month of June were as follows: June 1 June 30 Work in progress $145,000 171,000 Finished Goods 85,000 78,000 Production

A college currently measures its performance by comparing the actual costs against its budgeted costs for the year.Now that the college is facing increased competition from Various

MARGINAL COSTING As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which

Process Costing It is a costing method, which is applied wherever there are standard operations along with continuous production of homogeneous as identical units. Consequentl