Process costing
KRAFT 'R' US does customized, hand-crafted memorabilia, in which each batch of items is a job. The company has a highly labour intensive production process, so it allocates manufacturing overhead based on direct labour hours. Starz pre-determined overhead application rate for 20x8 was computed from the following data: Total estimated factory overheads $2,400,000 Total estimated direct labour hours 40,000 At the end of May 20X8, KRAFT 'R' US reported the following inventories: Materials Inventory WIP Inventory Finished Goods Inventory Bal. $208,000 Bal. $176,000 Bal. $95,000 During June 20x8, KRAFT 'R' US actually used 3,000 direct labour hours and recorded the following transactions. (0) Purchased materials on account $310,000 (ii) Manufacturing wages incurred $400,000 Materials requisitioned includes $30,000 of indirect materials) $420,000 (iv) Assigned manufacturing wages, 85% direct labour, 15% indirect labour Depreciation expense on factory equipment used on the different jobs $95,000 (v) Other manufacturing overhead incurred $35,000 (vi) Allocated manufacturing overhead for June 20x8 (vii) Cost of jobs completed $995,000 (vii) Cost of jobs sold on account) at a margin of 33% on sales $960,000 Required: (a) Compute KRAFT 'R' Us' predetermined manufacturing overhead rate for 20x8. (2 mark) (b)State the journal entries necessary to record the above transactions in the general journal. Assume that KRAFT 'R' US uses the perpetual inventory system. (10 marks) (c) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and state the balance on the account before performing end of period closing entries. Show the journal entries necessary to dispose of the variance. (3 marks) (d) What is the balance in the Cost of Goods Sold account after the adjustment? (2 marks) (e) Compute KRAFT 'R' US gross profit earned on the jobs completed. (2 marks) (f) Open T-accounts for Materials Inventory, Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts & determine the ending account balances. (6 marks)
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Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year,...
Ravsten Company uses a job-order costing system. On January 1,
the beginning of the current year, the company’s inventory balances
were as follows:
Raw materials
$
25,000
Work in process
$
13,600
Finished goods
$
31,800
The company applies overhead cost to jobs on the basis of
machine-hours. For the current year, the company estimated that it
would work 37,800 machine-hours and incur $166,320 in manufacturing
overhead cost. The following transactions were recorded for the
year:
Raw materials were...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $16,500 $10,200 $30, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36.100 machine-hours and incur $155.230 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on...
PART 1 (25 marks) G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory...
PART 1 (25 marks) G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process inventory (Job 551) of $93,000 The following events occurred during January 2019. i) Purchased materials on...
this is all the info given and the topic is "Product Costing" Assignment #3 _Product Costing PART 1 (25 marks) G-Fo...
this is all the info given and the topic is "Product
Costing"
Assignment #3 _Product Costing PART 1 (25 marks) G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials$50,500 Work in process 25,000 Finished goods38,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were...
Sea oll fields. The company uses a job-order costing system that applies mar acturing overhead cost...
Sea oll fields. The company uses a job-order costing system that applies mar acturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $290,000. b. Raw materials used in production (all direct materials) $275,000. c. Utility bills incurred on account,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $21, 500 $12, 200 $31, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,100 machine-hours and incur $150,255 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were...
requirment #2 Check my work Problem 3-15 Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, LO3-3, LO3-4)...
requirment #2
Check my work Problem 3-15 Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, LO3-3, LO3-4) Froya Fabrikker AS of Bergen, Norway, is a small company that manufactures speciality heavy equipment for use in North Sea oil fields. The company uses a job order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $329,000 of manufacturing overhead for an estimated allocation...
G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a...
G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labor intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labor costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process inventory (Job 551) of $93,000 The following events occurred during January 2019. i) Purchased materials on account, $392,000 ii) Incurred...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased...
Ravsten Company uses a job-order costing system. On January 1,
the beginning of the current year, the company’s inventory balances
were as follows:
Raw materials
$
25,000
Work in process
$
13,600
Finished goods
$
31,800
The company applies overhead cost to jobs on the basis of
machine-hours. For the current year, the company estimated that it
would work 37,800 machine-hours and incur $166,320 in manufacturing
overhead cost. The following transactions were recorded for the
year:
Raw materials were...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $16,500 $10,200 $30, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36.100 machine-hours and incur $155.230 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on...
PART 1 (25 marks) G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process inventory (Job 551) of $93,000 The following events occurred during January 2019. i) Purchased materials on...
this is all the info given and the topic is "Product
Costing"
Assignment #3 _Product Costing PART 1 (25 marks) G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process...
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials$50,500 Work in process 25,000 Finished goods38,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate of $11.75 per direct labor-hour was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were...
Sea oll fields. The company uses a job-order costing system that applies mar acturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased on account, $290,000. b. Raw materials used in production (all direct materials) $275,000. c. Utility bills incurred on account,...
Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $21, 500 $12, 200 $31, 100 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 37,100 machine-hours and incur $150,255 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were...
requirment #2
Check my work Problem 3-15 Journal Entries; T-Accounts; Financial Statements (LO3-1, LO3-2, LO3-3, LO3-4) Froya Fabrikker AS of Bergen, Norway, is a small company that manufactures speciality heavy equipment for use in North Sea oil fields. The company uses a job order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $329,000 of manufacturing overhead for an estimated allocation...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor- hours. Its predetermined overhead rate was based on a cost formula that estimated $360,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year: a. Raw materials purchased...
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