CCT 3377 Fall 2018 Highland Co. is a job-order-costing company that uses activit
ID: 2339870 • Letter: C
Question
CCT 3377 Fall 2018 Highland Co. is a job-order-costing company that uses activity-based costing to apply overhead t jobs. The following overhead activities were budgeted for the year. Cost $120,000 $80,000 $150,000 Amount of driver Activity setups purchasing other overhead Driver number of setups number of parts direct labor hours 6,000 20,000 75,000 The following information about the jobs was given for January. Job 1001 Job 1002 Job 1003 Job 1004 Balance 1/1 direct materials direct labor number of setups umber of parts direct labor hours Units $44,900 $54,000 $80,000 $60,700 $37,000 $38,500 S0 $O 40 300 5,000 2,000 $25,000 $41,000 $43,000 $71,000 200 500 1,200 1,800 10 30 400 5,200 180 2,400 1,500 800 By January 31, Jobs 1001 and 1004 were completed and only Job 1004 was sold. The remaining jo were still in process. (1) Calculate three activity rates. (2) Calculate the overhead cost per unit for Job 1004. Determine the cost per unit for Jobs 1001 and 1004 3) Celculate the beginning balance and ending balance of work-in-process for January. (5) Determine the cost of goods manufactured. (6) Calculate the cost of goods sold. (7) Prepare all necessary journal entries pertaining Job 1001, Job 1002, Job 1003, and Job 1004.Explanation / Answer
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1. Activity Rates: Activity Cost Amount of Driver Rate= Cost/Amount of Driver Setups $ 120,000 6000 $ 20 Purchasing $ 80,000 20000 $ 4 Other Overhead $ 150,000 75000 $ 2 2. Overhead cost for Job 1004: Activity Rate Amount of Driver Cost=Rate*Driver Setups 20 200 $ 4,000 Purchasing 4 500 $ 2,000 Other Overhead 2 1200 $ 2,400 Total Overhead for Job 1004 $ 8,400 3. Cost per Unit of Job 1001 and 1004: Overhead cost for 1001: Activity Rate Amount of Driver Cost=Rate*Driver Setups 20 40 $ 800 Purchasing 4 300 $ 1,200 Other Overhead 2 5000 $ 10,000 Total Overhead for Job 1001 $ 12,000 Cost per Unit: 1001 1004 Balance $ 44,900 Direct Material $ 54,000 $ 41,000 Direct Labor $ 80,000 $ 71,000 Overhead $ 12,000 $ 8,400 Total Cost $ 190,900 $ 120,400 No of Units $ 2,000 $ 1,800 Cost per Unit $ 95 $ 66.89 4. Balance in WIP: Beginning Work in Process: Job 1001 $ 44,900 Job 1002 $ 60,700 Job 1003 $ - Job 1004 $ - Beginning Work in Process $ 105,600 Ending Work in Process: Job 1001 $ - Completed Job 1002 $ 141,920 60700+37000+38500+5720 Beg Balance+Material+Labor+Overhead Job 1003 $ 80,600 0+25000+43000+12600 Beg Balance+Material+Labor+Overhead Job 1004 $ - Completed and Sold Ending Work in Process $ 222,520 Overhead cost for 1002: Activity Rate Amount of Driver Cost=Rate*Driver Setups 20 10 $ 200 Purchasing 4 180 $ 720 Other Overhead 2 2400 $ 4,800 Total Overhead for Job 1001 $ 5,720 Overhead cost for 1003: Activity Rate Amount of Driver Cost=Rate*Driver Setups 20 30 $ 600 Purchasing 4 400 $ 1,600 Other Overhead 2 5200 $ 10,400 Total Overhead for Job 1001 $ 12,600