Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 2, Problem 2SP
SERIAL PROBLEM
Business Solutions P1 P2 P3
(This serial problem began in Chapter 1 and continues through most of the book. If previous chapter segments were not completed, the serial problem can begin at this point.)
SP 15 The computer workstation furniture manufacturing that Santana Rey started Rey started in January is progressing well. As of the end of June, Business Solutions’s
Job 602 was started in production in May, and these costs were assigned to it in Ma: direct materials, $600; direct labor, $180; and
Required
1. What is the cost of the raw material used in June for each of the three jobs and in total?
Check (1) Total materials, $6,900
2. How much total direct labor cost is incurred in June?
3. What predetermined overhead rate is used in June?
(3) 50%
4. How much cost is transferred to Finished Goods Inventory in June?
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Part 1 Job Order Costing
John and Sam went to college together, and both majored in computer science. A few years ago, they formed a computer company called Synergy, Inc.
Synergy Inc. is a manufacturer of enterprise management systems. Assume that the company has a division that does custom jobs for large clients. Production costs are accounted for using a job cost system.
Suppose that at the beginning of the month, raw materials inventory totaled $8,000, manufacturing supplies amounted to $1,800, and two jobs were in process Job 355 with assigned costs of $18,750 and Job 356 with assigned costs of $2,800, and there were no finished goods inventories. There was no under-applied or over-applied manufacturing overhead on the first day of the month.
The following information summarized the month's manufacturing activities:
Synergy purchased raw material costing $50,000 on account.
Synergy purchased manufacturing supplies costing $9,000. The manager process requisitioned…
Part 1 Job Order Costing
John and Sam went to college together, and both majored in computer science. A few years ago, they formed a computer company called Synergy, Inc. Synergy Inc. is a manufacturer of enterprise management systems. Assume that the company has a division that does custom jobs for large clients. Production costs are accounted for using a job cost system. Suppose that at the beginning of the month, raw materials inventory totaled $8,000, manufacturing supplies amounted to $1,800, and two jobs were in process Job 355 with assigned costs of $18,750 and Job 356 with assigned costs of $2,800, and there were no finished goods inventories. There was no under-applied or over-applied manufacturing overhead on the first day of the month.
The following information summarized the month’s manufacturing activities:
Synergy purchased raw material costing $50,000 on account. Synergy purchased manufacturing supplies costing $9,000. The manager process requisitioned materials for the…
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the
end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.
Job 602
Job 603
Job 604
Direct
$1,800
$3,300
$2,700
materials
Direct
900
1,480
2,300
labor
Overhead
450
740
1,150
Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct
labor, $250; and overhead, $125. Jobs 603 and 604 were started in June. Overhead cost is applied with a
predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be
finished in July. No raw materials are used indirectly in June. (Assume this company's predetermined overhead rate did
not change over these months.)
Required:
1. What is the cost of the raw materials used in June for each of the three jobs and in total?
2. How much total direct labor cost is incurred in June?
3.…
Chapter 2 Solutions
Managerial Accounting
Ch. 2 - Prob. 1MCQCh. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - Some companies use labor cost to apply factory...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQ
Ch. 2 - Prob. 6DQCh. 2 - GOOGLE Google uses a “time ticket” for some...Ch. 2 - What events cause debits to be recorded in the...Ch. 2 - GOOGLE Google applies overhead to product costs....Ch. 2 - Prob. 10DQCh. 2 -
11. Why must a company use predetermined...Ch. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Job order productions C1 Refer to this chapter’s...Ch. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Exercise 15-13 Analysis of cost flows C2
As of the...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Exercise 15-7 Cost flows in a job order costing...Ch. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Prob. 4PSBCh. 2 - Prob. 5PSBCh. 2 - SERIAL PROBLEM Business Solutions P1 P2 P3 (This...Ch. 2 - Prob. 1GLPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - Apple and Samsung compete in the global...Ch. 2 - ETHICS CHALLENGE P3 BIN 15-3 Assume that your...Ch. 2 - COMMUNICATING IN PRACTICE C1 C2
BTN 15-4 Assume...Ch. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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