The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Wright Boats. The requisitions are identified by code numbers starting with the letter Q and the time tickets start with W. At the start of the year, management estimated that overhead cost would equal 140% of direct labor cost for each job.
Date Document Amount7/1/2011 Q-4698 $ 1,350 7/1/2011 W-3393 700 7/5/2011 Q-4725 1,100 7/5/2011 W-3479 550 7/10/2011 W-3559 400
Determine the total cost on the job cost sheet for Job 9-1005. (Omit the “$” sign in your response.)
Total cost $ In December 2010, Kent Computer’s management establishes the year 2011 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $797,500 of overhead costs and $550,000 of direct labor cost in year 2011. During March 2011, Kent began and completed Job No. 13-56.
1. What is the predetermined overhead rate for year 2011? (Omit the “%” sign in your response.)Predetermined overhead rate %
2. Use the information on the following job cost sheet.
JOB COST SHEETCustomer’s Name Keiser Co. Job No. 13-56 Job Description 5 color monitors—21 inch Direct Materials Direct Labor OverheadCosts Applied
Date Requisition No. Amount Time-Ticket No. Amount Rate Amount Mar. 8 4-129 $ 4,000 T-306 $ 660 Mar. 11 4-142 6,600 T-432 1,340 Mar. 18 4-167 3,350 T-456 1,300
Totals Determine the total cost of the job. (Round your answer to the nearest whole number. Omit the “$” sign in your response.)
Total cost of the job $ Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following.
Date Explanation Debit Credit Balance2011 Dec. 31 Direct materials cost 1,300,000 1,300,000 31 Direct labor cost 210,000 1,510,000 31 Overhead costs 598,000 2,108,000 31 To finished goods 2,020,000 88,000
1. Determine the overhead rate used (based on direct material cost). (Omit the “%” sign in your response.)Overhead rate %
2. Only one job remained in the goods in process inventory at December 31, 2011. Its direct materials cost is $22,000. How much direct labor cost and overhead cost are assigned to it? (Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)Direct labor cost $ Overhead cost $