Question

c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $750,000 and machine hours used would be 30,000. The following information pertains to March of the current year: Beginning balance Current period costs added: Direct materials requisitioned (used) Direct labor costs Current period activity Machine hours Job X Job Y Job Z Totals $18,000 $27,000 $30,000 $75,000 $40,000 $45,000 $35,000 $120,000 $28,000 $40,000 $37,000 $105,000 1,500 2,000 1,500 5,000 Assume that Jobs X and Y are completed during the month; and that Job X was sold on account for $150,000. Required: a. Compute the predetermined overhead application rate for the year. 25/ber yr b. Determine the total cost (including beginning inventory) assigned to each job; X, Y, and Z. On Paper c. Give the journal entry to record the completion of Jobs X and Y. on Paper d. Give the journal entries to record (1) the sale and (2) the cost of sale of Job X. In Paper e. What is the ending balance of Brooke's work-in-process inventory? on Paper

          c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead
rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be
$750,000 and machine hours used would be 30,000.
The following information pertains to March of the current year:
Beginning balance
Current period costs added:
Direct materials requisitioned (used)
Direct labor costs
Current period activity
Machine hours
Job X
Job Y
Job Z
Totals
$18,000
$27,000
$30,000
$75,000
$40,000
$45,000
$35,000
$120,000
$28,000
$40,000
$37,000
$105,000
1,500
2,000
1,500
5,000
Assume that Jobs X and Y are completed during the month; and that Job X was sold on account for
$150,000.
Required:
a. Compute the predetermined overhead application rate for the year. 25/ber yr
b. Determine the total cost (including beginning inventory) assigned to each job; X, Y, and Z. On Paper
c. Give the journal entry to record the completion of Jobs X and Y. on Paper
d. Give the journal entries to record (1) the sale and (2) the cost of sale of Job X. In Paper
e. What is the ending balance of Brooke's work-in-process inventory? on Paper

c. (22 points) Brooke Company uses a job-order costing system and a predetermined overhead
rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be
750,000 and machine hours used would be 30,000.
The following information pertains to March of the current year:
Beginning balance
Current period costs added:
Direct materials requisitioned (used)
Direct labor costs
Current period activity
Machine hours
Job X
Job Y
Job Z
Totals18,000
27,00030,000
75,00040,000
45,00035,000
120,00028,000
40,00037,000
105,000
1,500
2,000
1,500
5,000
Assume that Jobs X and Y are completed during the month; and that Job X was sold on account for150,000.
Required:
a. Compute the predetermined overhead application rate for the year. 25/ber yr
b. Determine the total cost (including beginning inventory) assigned to each job; X, Y, and Z. On Paper
c. Give the journal entry to record the completion of Jobs X and Y. on Paper
d. Give the journal entries to record (1) the sale and (2) the cost of sale of Job X. In Paper
e. What is the ending balance of Brooke's work-in-process inventory? on Paper

Added by Samantha R.

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