Stockman Co. began 2010 with three jobs in process: Type of Cost Job No. Direct
ID: 2434580 • Letter: S
Question
Stockman Co. began 2010 with three jobs in process:Type of Cost
Job No. Direct Material Direct Labor Overhead Total
247 $77,200 $91,400 $36,560 $205,160
251 176,600 209,800 83,920 470,320
253 145,400 169,600 67,840 382,840
Totals $399,200 $470,800 $188,320 $1,058,320
During 2010, the following transactions occurred:
1. The firm purchased and paid for $542,000 of raw material.
2. Factory payroll records revealed the following:
Explanation / Answer
Material inventory 542,000 cash 542,000 Being raw materials purchased Indirect labor 54,000 cash 54,000 Being indirect labor charges paid Work in progress 54,000 Indirect labor 54,000 Being indirect labor transferred to work in progress Direct labor 602,800 cash 602,800 Being direct labor charges paid work in progress 6,028,000 Direct labor 602800 Being direct labor transferred to various jobs work in progress 76,000 indirect material 76,000 Being indirect material tranferred work in proress 466,400 Direct material 466,000 Being direct materials transferred to various jobs overheads 244,400 cash 244,400 Being overhead charges paid work in progress 244,400 overheads 244,400 being actual overheads transferred cost of goods sold 3280 overheads 3280 Being under applied overheads adjusted Note: over heads are 40% of direct labor 602800×40/100=241420 Actual over heads= 244400 Budgeted overheads=241120 under applied over heads=3280 Ending jobs under process Material labor overheads total Job 256 72,800.00 94,600.00 37,840.00 205,240.00 Job 257 133,200.00 179,400.00 71,760.00 384,360.00 total 206,000.00 274,000.00 109,600.00 589,600.00