Chapter 17: 17-1SE-j (page 938)
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
j. A manufacturer of tennis shoes
A manufacturer of tennis shoes is most likely to use process costing system.
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Selected cost data for Classic Print Co. are as follows:
Estimated manufacturing overhead cost for the year | $125,000 |
Estimated direct labor cost for the year | 78,125 |
Actual manufacturing overhead cost for the year | 116,000 |
Actual direct labor cost for the year | 67,000 |
Requirements
2. Prepare the journal entry to allocate overhead costs for the year.
Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
f. Allocated manufacturing overhead to jobs, 200% of direct labor costs.
June production generated the following activity in Bentley Chassis Company’s Work-in-Process Inventory account:
June 1 balance | \(36,000 |
Direct materials used | 32,000 |
Direct labor assigned to jobs | 40,000 |
Manufacturing overhead allocated to jobs | 28,000 |
Additionally, Bentley Chassis has completed Jobs 142 and 143, with total costs of
\)37,000 and $48,000, respectively.
Requirements
2. Open a T-account for Work-in-Process Inventory. Post the journal entry made in Requirement 1. Compute the ending balance in the Work-in-Process Inventory
account on June 30.
Journalize the following labor-related transactions for Portland Glass Creations at its plant in Portland, Oregon. Assume that the labor has been incurred, but not yet paid.
Justice Company’s Manufacturing Overhead account is given below. Use this informationto prepare the journal entry to adjust for overallocated or underallocatedoverhead.
Manufacturing overhead
| 148000 | 147000 |
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