P2-1B Pedriani club uses a job sight cost scheme and applies overhead to occupation on the base of direct project hours. On January 1, 2014, frolic No. 25 was the only job in process. The cost incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and manufacturing overhead $9,000. Job No. 23 had been completed at a cost of $42,000 and was part of ?nished goods inventory. There was a $5,000 fit in the Raw Materials Inventory account. During the month of January, the company began production on Jobs 26 and 27, and completed Jobs 25 and 26. Jobs 23 and 25 were sold on account during the month for $63,000 and $74,000, respectively. The following additive events occurred during the month. 1. Purchased additional raw materials of $45,000 on account. 2. Incurred factory labor cost of $33,500. Of this amount, $7,500 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: substantiating materials $10,000; indirect labor $9,500; depreciation expense on equipment $12,000; and several(a) other manufacturing overhead costs on account $11,000. 4. charge direct materials and direct labor to jobs as follows. Job No.
25 26 27 Direct Materials $ 5,000 17,000 13,000 Direct Labor $ 3,000 12,000 9,000
posit entries in a job order cost system and job cost sheets.
(LO 2, 3, 4, 5, 6), AP
5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours incurred on each job were as follows: Job No. 25, two hundred; Job No. 26, 800; and Job No. 27, 600. Instructions (a) describe the predetermined overhead rate for the year 2014, assuming Pedriani Company estimates total manufacturing overhead costs of $440,000, direct labor costs of $300,000, and direct labor hours of 20,000 for the year. (b) Open job cost sheets for Jobs 25, 26, and 27. code the January 1 balances on the job cost sheet for Job No. 25. (c) Prepare the journal entries to record the...If you want to witness a full essay, order it on our website: Ordercustompaper.com
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