ollowing transactions or make the necessary calculations: 1. January 10th We start building our first bike. We will call it Job Number 100. We call the storeroom and requisition $500 of raw materials to be directly used on the Job. We also need an additional $200 in raw materials that will be used for indirect materials. Record the journal entry for the transaction: 2. January 15th We start assembling the bike – Job Number 100. We use 40 direct lab

ollowing transactions or make the necessary calculations: 1. January 10th We start building our first bike. We will call it Job Number 100. We call the storeroom and requisition $500 of raw materials to be directly used on the Job. We also need an additional $200 in raw materials that will be used for indirect materials. Record the journal entry for the transaction: 2. January 15th We start assembling the bike – Job Number 100. We use 40 direct lab

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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Reggie Wilmore has just started a new businessbuilding and installing custom garage organization systems. Reggie builds the cabinets and work benches in his workshop, then installs them in clients garages. Reggie figures his overhead for the coming year will be 12,000. Since his business is labor intensive, he plans to use direct labor hours as his overhead driver. For the coming year, he expects to complete 100 jobs, averaging 25 direct labor hours each. However, he has the capacity to complete 125 jobs averaging 25 direct labor hours each. Required: 1. What source documents will Reggie need to account for costs in his new business? 2. Suppose Reggies business grows, and he expands his workshop and hires three additional carpenters to help him. What source documents will he need now?
Reggie Wilmore has just started a new business—building and installing custom garage organization systems. Reggie builds the cabinets and work benches in his workshop, then installs them in clients’ garages. Reggie figures his overhead for the coming year will be $12,000. Since his business is labor intensive, he plans to use direct labor hours as his overhead driver. For thecoming year, he expects to complete 100 jobs, averaging 25 direct labor hours each. However,he has the capacity to complete 125 jobs averaging 25 direct labor hours each.Required:1. Four measures of activity level were mentioned in the text. Which two measures is Reggie onsidering in computing a predetermined overhead rate?2. Compute the predetermined overhead rates using each of the measures in your answer toRequirement 1.3. Which one would you recommend that Reggie use? Why?
Toys World started and finished job number A26, a batch of 1,000 cuddly koalas, during March 2020.The job required $4,850 of direct material and 32 hours of direct labour at $20 per hour. Thepredetermined overhead rate is $10.50 per direct labour hour. On 31st March, 900 of the cuddlykoalas were shipped to a local toy shop. c.) How might the managers at toy world use this information?
Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job- order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead allocation. In December 2020, she estimated the following amounts for the year 2021: Direct materials Construction labour Overhead Construction labour-hours Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the quarter: Direct materials Construction labour-hours $13,395,200 8,165,000 8,847,700 460,000 Direct Material Construction Labour Overhead Total cost $ $753,500 School Residential $904,200 36,800 62,100 Required: 1. Compute the cost of each job using the current system of cost allocation. (Round intermediate…
Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job- order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead allocation. In December 2020, she estimated the following amounts for the year 2021: Direct materials Construction labour. Overhead Construction labour-hours Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the quarter: Direct materials $13,395,200 8,165,000 8,847,700 460,000 Construction labour-hours $753,500 School Residential Cinema $904, 200 $1,356,300 36,800 16,100 62,100 Required: 1. Compute the cost of each job using the current system of cost allocation. (Round intermediate calculations to 2 decimal places.)
Madison is the newly appointed manager of spark communication a small computer monitor manfacturing company based out of halifox nova Scottia. During her first few days on the jobs she collected the following data about the company. The company has the capacity to produce 750 monitors per month and is currently producing 525monitors every month and selling it to wholesaler The company is expenses are :rent $4000 per month, salaries of $12500 per month, insurance of $1500 per month , material is of $6 permonth, labour of $35 per month and sales commissions of $19 per month. Each month is sold for $105. a. What is the contribution margin and the contribution rate? b. What is the break even volume and break even revenue per month? c. How much net income per month we earned at the current level of presentation.?
John at Tim's Toys was working on a custom-made miniature car for a customer. The job, BCB101, was started in March. At the end of March, the job cost sheet for BCB101 showed direct materials of $6,000, direct labor of 200 hours at $75 per hour, and overhead of 80% of direct labor cost. During April, direct materials of $1,700 were added, and John's time ticket showed 50 hours on Job BCB101, 25 hours on Job BCB102, and 40 hours on a new job, BCB103. Job BCB101 was completed on April 29. What is the total cost of Job BCB101 as of April 29? $26,450 $33,000 $41,450 $8,450
I do not want the answer i just need help figuring out how to get the answer. can you please explain to me what I need to do to get to my answer for each one? the question is below At the end of August, Rothchild Company had completed Jobs 40 and 42. Job 40 is for 10,000 units, and Job 42 is for 11,000 units. The following data relate to these two jobs: On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. During August, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit. During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42. Rothchild Company estimates that total factory overhead costs will be $810,000 for the year. Direct labor hours are estimated to be…
Molly just started working as a junior accountant at a manufacturing firm that uses job order costing. She has asked you, the senior accountant, for some help with calculating overhead allocation rates. The following data has been provided for the year ended December 31, 2020: Estimated Actual Machine Hours Direct Labor Hours Direct Labor Cost Manufacturing Overhead Cost 10,000 20,000 $200,000 $560,000| 11,000 19,000 $190,000 $600,000| Actual data from August is as follows: Machine Hours Direct Labor Hours Direct Labor Cost August 900 1,600 $16,000 a. If the company uses a normal costing system and has selected machinehours as the appropriate allocation base, what is the allocation rate? b. Using the allocation rate determined in part 1, what is the amount of overhead allocated for the month ended August 31, 2020
Assume you are the leather department manager at the Famous Football Factory. The leather department is a cost center and you are reviewing the scrap costs for the previous year, shown here: A. Using Microsoft Excel or another spreadsheet application, create a line chart with markers showing the leather scrap expense. Describe your observations. B. Knowing that leather is susceptible to indoor temperature, you decide to talk with the maintenance manager and obtain the following information: Using Microsoft Excel or another spreadsheet application, create individual line charts with markers showing the indoor temperature, spare parts inventory, and breakdowns. Describe your observations and actions you might consider.
Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour. A. What is the standard materials cost per unit for a widget? 8. What is the standard labor cost per unit for a widget?
Toys World started and finished job number A26, a batch of 1,000 cuddly koalas, during March 2020. The job required $4,850 of direct material and 32 hours of direct labour at $20 per hour. The predetermined overhead rate is $10.50 per direct labour hour. On 31st March, 900 of the cuddly koalas were shipped to a local toy shop.Required:a) Prepare journal entries to record the incurrence of production costs, completion of job number A26 and the shipment of 900 cuddly koalas to local toy shop. (5 marks)b) Calculate the cost per cuddly koala for job number A26. (2 marks)c) How might the managers at Toys World use this information? (3 marks)