User Account

All Pages

Job Order Costing, Managerial Accounting

Assignment Help:
Salialailai Ltd manufactures water tanks for different sizes for use by industrial customers. The company uses a job costing system, in which manufacturing overhead is applied on the basis of direct labour hours. The company’s budget for the current year included the following estimates:
Budgeted total manufacturing overhead $504,000 Budgeted total direct labour hours 24,000 During March, the company started two production jobs:
? Job number ST81, consisting of 76 water tanks (Standard size)
? Job number MI45 consisting of 110 water tanks (midi size)
The transactions for March are described below:
1,000 square meters of aluminium sheet material were purchased on account for $6,000.
? 400 kilograms of aluminium tubing were purchased on account for $5,200
? The following requisitions were filed on 5 March:
? Requisition number 112: 260 square meters of aluminium sheet metal (for job number ST81) @ $5.50 per square meter.
? Requisition number 113: 1,100 kilograms of aluminium tubing (for job number MI45) @ $9 per kilogram
? Requisition number 114: 10 litres of superb glue @ $14 per liter. All aluminium used in production is treated as direct material. Superb glue is an indirect material.
? An analysis of labour time sheets revealed the following labour usage for March:
? Direct labour: job number ST81, 850 hours @ $20 per hour
? Direct labour: job number MI45, 950 hours @ $20 per hour
? Indirect labour: general factory clean up, $4,500
? Indirect labour: factory supervisory salaries, $9,600
? Depreciation of the factory building and equipment during March amounted to $13,000.
? Other manufacturing overhead costs incurred in March totalled $9,010.
? Sales and administrative expenses for March totalled $13,150.
? Job number ST81 was completed in March.
? 75% of the water tanks (Standard size) were sold on account during March for $700 each.
19
The March 1st balances in selected accounts are as follows:
Cash $11,000
Accounts receivable 20,000
Raw material inventory 50,000
Manufacturing supplies inventory 600
Work in process inventory 89,600
Finished goods inventory 223,000
Accumulated depreciation 99,000
Accounts payable 14,500
Wages payable 8,500
Required:
1.Calculate the company’s predetermined overhead rate for the current year.
2. .Prepare and complete a job cost sheet for Job Number ST81
3.Prepare journal entries (without narration) for March to record the following (Note: Use summary entries where appropriate by combining individual job data):
i) the issue of raw material to production
ii) the labour costs incurred
iii) the manufacturing overhead costs incurred
iv) the application of manufacturing overhead to production
v) the completion of job(s) in March
vi) the sale of job(s) in March
4.Calculate the overapplied or underapplied overhead for March.
5. Prepare a journal entry to close this balance to Cost of goods sold.

Related Discussions:- Job Order Costing

Financialstatement, useroffinancialstatement

useroffinancialstatement

Illustrate thedifference between a fixed and flexible budget, Difference be...

Difference between a fixed and flexible budget Fixed budget A fixed budget remains the same irrespective of changed situations. It remains inflexible even if volume of

Breakeven analysis, help needed

help needed

Input-exogenous variables, Input or exogenous variables These are varia...

Input or exogenous variables These are variables of two types: 1) Controlled variables: These are variables that can be controlled by management. By changing the input

Breakeven point, A company manufactures a one product. Estimated cost data ...

A company manufactures a one product. Estimated cost data regarding this product and other information for the product and the company are as follows: Sales price per unit Rs.2000

Prepare cash budgets, QUESTION 1 PART A  You are provided with t...

QUESTION 1 PART A  You are provided with the given information relating to ABC Limited. The accountant is currently developing the budget for the next three months endin

Pricing over the life cycle of a product, Q. Pricing over the life cycle of...

Q. Pricing over the life cycle of a product? The cycle begins with the invention of the new product. The innovation of a new product and its degeneration to a common product is

What are the disadvantages of budgetary control, What are the Disadvantages...

What are the Disadvantages of budgetary control 1) Uncertain future: the budgets are prepared for the future period. Despite best estimates made for the predictions may not

International transfer pricing, International Transfer pricing Internat...

International Transfer pricing International transfer pricing refers to the determination of prices to be charged between related persons and in particular within a multination

Help, Jackson County Senior Services is a nonprofit organization devoted to...

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three serv

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd