Question

Specialty Components began 2002 with three jobs in process: $$ \begin{aligned} &\text { TYPE OF COST }\\ &\begin{array}{|c|c|c|c|c|c|} \hline \text { Job No. } & \text { Direct Material } & \text { Direct Labor } & \text { Overhead } & & \text { Total } \\ \hline 247 & \$ 77,200 & \$ 91,400 & \text { \$ } 34,732 & \$ & 203,332 \\ \hline 251 & 176,600 & 209,800 & 79,724 & & 466,124 \\ \hline 253 & 145,400 & 169,600 & 64,448 & & 379,448 \\ \hline \text { Totals } & \$ 399,200 & \$ 470,800 & \overline{\$ 178,904} & & 1,048,904 \\ \hline \end{array} \end{aligned} $$ During 2002, the following transactions occurred: 1. The firm purchased and paid for $$\$ 532,000$$ of raw material. 2. Factory payroll records revealed the following: • Indirect labor incurred was $$\$ 54,000$$. • Direct labor incurred was $$\$ 602,800$$ and was associated with the jobs as follows: $$ \begin{array}{cr} \text { Job No. } & \text { Direct Labor Cost } \\ \hline & \\ 247 & \$ 17,400 \\ 251 & 8,800 \\ 253 & 21,000 \\ 254 & 136,600 \\ 255 & 145,000 \\ 256 & 94,600 \\ 257 & 179,400 \end{array} $$ 3. Material requisition forms issued during the year revealed the following: • Indirect material issued totaled $$\$ 76,000$$. • Direct material issued totaled $$\$ 468,400$$ and was associated with jobs as follows: $$ \begin{array}{cr} \text { Job No. } & \text { Direct Material Cost } \\ \hline & \\ 247 & \$ 14,400 \\ 251 & 6,200 \\ 253 & 16,800 \\ 254 & 103,200 \\ 255 & 119,800 \\ 256 & 72,800 \\ 257 & 135,200 \end{array} $$ 4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted overhead of $$\$ 240,000$$ and total direct labor cost of $$\$ 600,000$$ for 2002. Actual total factory overhead costs (including indirect labor and indirect material) for the year were $$\$ 244,400$$. 5. Jobs $\# 247$ through $\# 255$ were completed and delivered to customers, C.O.D. The revenue on these jobs was $$\$ 2,264,774$$. a. Prepare journal entries for all of the above events. b. Determine ending balances for jobs still in process. c. Determine cost of jobs completed, adjusted for underapplied or overapplied overhead.

   Specialty Components began 2002 with three jobs in process:
$$
\begin{aligned}
&\text { TYPE OF COST }\\
&\begin{array}{|c|c|c|c|c|c|}
\hline \text { Job No. } & \text { Direct Material } & \text { Direct Labor } & \text { Overhead } & & \text { Total } \\
\hline 247 & \$ 77,200 & \$ 91,400 & \text { \$ } 34,732 & \$ & 203,332 \\
\hline 251 & 176,600 & 209,800 & 79,724 & & 466,124 \\
\hline 253 & 145,400 & 169,600 & 64,448 & & 379,448 \\
\hline \text { Totals } & \$ 399,200 & \$ 470,800 & \overline{\$ 178,904} & & 1,048,904 \\
\hline
\end{array}
\end{aligned}
$$
During 2002, the following transactions occurred:
1. The firm purchased and paid for $$\$ 532,000$$ of raw material.
2. Factory payroll records revealed the following:
• Indirect labor incurred was $$\$ 54,000$$.
• Direct labor incurred was $$\$ 602,800$$ and was associated with the jobs as follows:
$$
\begin{array}{cr}
\text { Job No. } & \text { Direct Labor Cost } \\
\hline & \\
247 & \$ 17,400 \\
251 & 8,800 \\
253 & 21,000 \\
254 & 136,600 \\
255 & 145,000 \\
256 & 94,600 \\
257 & 179,400
\end{array}
$$
3. Material requisition forms issued during the year revealed the following:
• Indirect material issued totaled $$\$ 76,000$$.
• Direct material issued totaled $$\$ 468,400$$ and was associated with jobs as follows:
$$
\begin{array}{cr}
\text { Job No. } & \text { Direct Material Cost } \\
\hline & \\
247 & \$ 14,400 \\
251 & 6,200 \\
253 & 16,800 \\
254 & 103,200 \\
255 & 119,800 \\
256 & 72,800 \\
257 & 135,200
\end{array}
$$
4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted overhead of $$\$ 240,000$$ and total direct labor cost of $$\$ 600,000$$ for 2002. Actual total factory overhead costs (including indirect labor and indirect material) for the year were $$\$ 244,400$$.
5. Jobs $\# 247$ through $\# 255$ were completed and delivered to customers, C.O.D. The revenue on these jobs was $$\$ 2,264,774$$.
a. Prepare journal entries for all of the above events.
b. Determine ending balances for jobs still in process.
c. Determine cost of jobs completed, adjusted for underapplied or overapplied overhead.
Show more…
Cost Accounting: Traditions and Innovations
Cost Accounting: Traditions and Innovations
Jesse T. Barfield,… 4th Edition
Chapter 5, Problem 45 ↓

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Step 1

- **Purchase of raw materials:** \[ \text{Raw Materials} \quad 532,000 \\ \text{Cash} \quad 532,000 \] (To record the purchase of raw materials) - **Direct and indirect labor costs:** \[ \text{Work in Process} \quad 602,800 \\ \text{Factory  Show more…

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Specialty Components began 2002 with three jobs in process: $$ \begin{aligned} &\text { TYPE OF COST }\\ &\begin{array}{|c|c|c|c|c|c|} \hline \text { Job No. } & \text { Direct Material } & \text { Direct Labor } & \text { Overhead } & & \text { Total } \\ \hline 247 & \$ 77,200 & \$ 91,400 & \text { \$ } 34,732 & \$ & 203,332 \\ \hline 251 & 176,600 & 209,800 & 79,724 & & 466,124 \\ \hline 253 & 145,400 & 169,600 & 64,448 & & 379,448 \\ \hline \text { Totals } & \$ 399,200 & \$ 470,800 & \overline{\$ 178,904} & & 1,048,904 \\ \hline \end{array} \end{aligned} $$ During 2002, the following transactions occurred: 1. The firm purchased and paid for $$\$ 532,000$$ of raw material. 2. Factory payroll records revealed the following: • Indirect labor incurred was $$\$ 54,000$$. • Direct labor incurred was $$\$ 602,800$$ and was associated with the jobs as follows: $$ \begin{array}{cr} \text { Job No. } & \text { Direct Labor Cost } \\ \hline & \\ 247 & \$ 17,400 \\ 251 & 8,800 \\ 253 & 21,000 \\ 254 & 136,600 \\ 255 & 145,000 \\ 256 & 94,600 \\ 257 & 179,400 \end{array} $$ 3. Material requisition forms issued during the year revealed the following: • Indirect material issued totaled $$\$ 76,000$$. • Direct material issued totaled $$\$ 468,400$$ and was associated with jobs as follows: $$ \begin{array}{cr} \text { Job No. } & \text { Direct Material Cost } \\ \hline & \\ 247 & \$ 14,400 \\ 251 & 6,200 \\ 253 & 16,800 \\ 254 & 103,200 \\ 255 & 119,800 \\ 256 & 72,800 \\ 257 & 135,200 \end{array} $$ 4. Overhead is applied to jobs on the basis of direct labor cost. Management budgeted overhead of $$\$ 240,000$$ and total direct labor cost of $$\$ 600,000$$ for 2002. Actual total factory overhead costs (including indirect labor and indirect material) for the year were $$\$ 244,400$$. 5. Jobs $\# 247$ through $\# 255$ were completed and delivered to customers, C.O.D. The revenue on these jobs was $$\$ 2,264,774$$. a. Prepare journal entries for all of the above events. b. Determine ending balances for jobs still in process. c. Determine cost of jobs completed, adjusted for underapplied or overapplied overhead.
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