Stockman Co. began 2010 with three jobs in process: - 12295

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Stockman Co. began 2010 with three jobs in process:

 

 

 

                                 Type of Cost

 

 

 

Job No.        Direct           Direct                Overhead             Total

 

                  Material         Material

 

247            $ 77,200           $ 91,400           36,560           $ 205,160

 

251             176,600            209,800            83,920             470,320

 

253             145,400            169,600            67,840             382,840

 

Totals       $ 399,200         $ 470,800       $ 188,320         $ 1,058,320

 

 

 

During 2010, the following transactions occurred:

 

1.  The firm purchased and paid for $542,000 of raw material.

 

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:

 

 

 

Job No.                          Direct Labor Cost

 

 

 

247                                 $ 17,400

 

251                                     8,800

 

253                                    21,000

 

254                                   136,600

 

255                                   145,000

 

256                                    94,600

 

257                                   179,400

 

 

 

3.  Material requisition forms issued during the year revealed the following:

 

- Indirect material issued totaled  $ 76,000

 

- Direct material issued totaled $ 466,400 and was associated with jobs follows:

 

Job No.                            Direct Material Cost

 

 

 

247                                     $ 12,400

 

251                                          6,200

 

253                                         16,800

 

254                                        105,200

 

255                                        119,800

 

256                                          72,800

 

257                                        133,200

 

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 2010.  Actual total factory overhead costs (including indirect labor and indirect material for the year totaled $ 244,400.

 

5. Jobs #247 through #255 were completed and delivered to customers, who paid for the goods in cash.  The revenue on these jobs was $ 2,264,774.

 

a.  Journalize all preceding events.

 

b.  Determine the ending balances for the jobs still in process.

 

c.  Determine the cost of jobs sold, adjusted for under applied or over applied overhead.

 

                        

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