Chapter 17: 24E-f (page 945)
Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
f. Allocated manufacturing overhead to jobs, 200% of direct labor costs.
Date | Particulars | Debit ($) | Credit ($) |
Work-in-process inventory (200% of 11,250) | 22,500 | ||
Manufacturing overhead | 22,500 |
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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
4. What is the gross profit on Job 143?
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
1. Compute the predetermined overhead allocation rate per direct labor dollar.
Question: What types of companies use job order costing systems?
How is the predetermined overhead allocation rate used by service companies?
Question: What types of companies use process costing systems?
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