Reference no: EM13570819
1. Costa Production uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 621 $2,000, and Job No. 622 $1,200. During May, a summary of source documents reveals the following.
Materials Labor
Job Number Requisition Slips Time Tickets
621 $2,500 $2,200
622 3,500 3,000
623 4,400 7,600
$10,400 $12,800
General use 1,000 1,400
$11,400 $14,200
Costa applies manufacturing overhead to jobs at an overhead rate of 85% of direct labor cost.
Job No. 621 is completed during the month.
Instructions
Prepare summary journal entries to record:
a) Direct and indirect materials used
b) Direct and indirect labor
c) Manufacturing overhead applied to jobs
d) Completion of Job No. 621.
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DATE
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ACCOUNT NAME
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DEBIT
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CREDIT
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a) May 31
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b) May 31
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c) May 31
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d) May 31
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2. The predetermined overhead rate is 60% of direct labor cost. During the month, $350,000 of factory labor costs were incurred of which $150,000 was indirect labor and $200,000 was direct labor. The amount of overhead debited to Work in Process Inventory should be:
3.Complete the table below by computing equivalent units for materials and conversion costs. Note: assume all materials are added at the beginning of the period.
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Physical Units
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Materials
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Conversion
Costs
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Completed and transferred out units
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60,000
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Work in process ending inventory, June 30
(25% complete for conversion costs)
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20,000
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Total Equivalent Units
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