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Job Order Costing 2

Bobcat Company uses a job-order costing system and has various costs in its Work in Process Inventory for April, including direct materials, labor, and overhead. West Company calculates the total cost of Job #3051 based on direct materials, labor, and overhead rates. Forrest Manufacturing applies overhead in two departments, and Carolina Company calculates the balance of Job #145 after applying direct costs and overhead.

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Lucy Heartfilia
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11 views4 pages

Job Order Costing 2

Bobcat Company uses a job-order costing system and has various costs in its Work in Process Inventory for April, including direct materials, labor, and overhead. West Company calculates the total cost of Job #3051 based on direct materials, labor, and overhead rates. Forrest Manufacturing applies overhead in two departments, and Carolina Company calculates the balance of Job #145 after applying direct costs and overhead.

Uploaded by

Lucy Heartfilia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. Bobcat Company. uses a job-order costing system.

During April, the following


costs appeared in the Work in Process Inventory account:

Beginning balance $
24,000
Direct material used 70,000
Direct labor incurred 60,000
Applied overhead 48,000
Cost of goods 185,00
manufactured 0

Bobcat Company applies overhead on the basis of direct labor cost. There was only
one job left in Work in Process at the end of April which contained $5,600 of
overhead. What amount of direct material was included in this job?
a $4,40
. 0
b $4,48
. 0
c $6,92
. 0
d $8,00
. 0

Predetermined overhead rate: 48,000 / 60,000 = 0.80


Direct Labor: Overhead / predetermined
5,600 / 80% = 7,000

Direct Materials 4,400


Direct Labor 7,000
Factory Overhead 5,600
17,000
2. West Company is a print shop that produces jobs to customer specifications.
During January, Job #3051 was worked on and the following information is
available:

Direct material used $2,50


0
Direct labor hours worked 15
Machine time used 6
Direct labor rate per hour $7
Overhead application rate per hour of
$18
machine time

What was the total cost of Job #3051 for January?


a $2,71
. 3
b $2,77
. 0
c $2,81
. 2
d $3,05
. 2

Direct Materials used 2,500


Direct Labors (15 x 7) 105
Mfg. Overhead (18 x 6) 108
2,713

3. Products at Forrest Manufacturing are sent through two production


departments: Fabricating and Finishing. Overhead is applied to products in
the Fabricating Department based on 150 percent of direct labor cost and
$18 per machine hour in Finishing. The following information is available
about Job #297:
Fabricati Finishin
ng g
Direct material $1,590 $580
Direct labor
? 48
cost
Direct labor
22 6
hours
Machine hours 5 15
Overhead
429 ?
applied

What is the total cost of Job #297?


a. $2,64
7
b. $3,00
5
c. $3,09
3
d. $3,20
3

Direct Materials 1,590 + 580 = 2,170


Direct Labor (429 / 1.50) 286 + 48 = 334
Overhead (15 x 18) 429 + 270 = 699
3,203

4. Carolina Company applies overhead to jobs at the rate of 40 percent of direct


labor cost. Direct material of $1,250 and direct labor of $1,400 were expended on
Job #145 during June. On May 31, the balance of Job #145 was $2,800. The balance
on June 30 is:
a $3,210.
.
b $4,760.
.
c $5,450.
.
d $6,010.
.

Beginning WIP P2,800


Add: Direct Materials 1,250
Direct Labor 1,400
Factory Overhead (P1,400 * 40%) 560
6,010

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