Problem 14-01A a-h Coronado Company uses a job order cost system and applies ove
ID: 2435076 • Letter: P
Question
Problem 14-01A a-h Coronado Company uses a job order cost system and applies overhead to prodution on the basis of direct labor costs. On January 1, 2017, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,000, direct labor $14,400, and manufacturing overhead $19,200. As of January 1, Job 49 had been completed at a cost of $108,000 and was part of finished goods inventory. There was a $18,000 balance in the Raw Materials Inventory account During the month of January, Coronado Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month. 1. Purchased additional raw materials of $108,000 on account. 2. Incurred factory labor costs of $84,000. 3. Incurred manufacturing overhead costs as follows: indirect materials $20,400; indirect labor $24,000; depreciation expense on equipment $14,400; and various 4. Assigned direct materials and direct labor to jobs as follows Job No. Direct Materials Direct Labor other manufacturing overhead costs on account $19,200. 50 51 52 $12,000 46,800 36,000 $6,000 30,000 24,000Explanation / Answer
Job No. 50 Date Direct Materials Direct Labor Manufacturing Overhead Beg. $24,000 $14,400 $19,200 Jan. 12,000 6,000 * 9,000* $36,000 $20,400 $28,200 Cost of completed job Direct materials $36,000 Direct labor $20,400 Manufacturing overhead $28,200.00 Total cost $84,600 Predetermined Overhead Rate is not given in the question It is assumed to be 150% of direct labor costs *$6,000 X 150% Job No. 51 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $46,800 $30,000 **$45,000** $46,800 $30,000 **$45000** Cost of completed job Direct materials $46,800 Direct labor $30,000 Manufacturing overhead $45,000.00 Total cost $121,800 Predetermined Overhead Rate is not given in the question It is assumed to be 150% of direct labor costs **$30,000 X 150% Job No. 52 Date Direct Materials Direct Labor Manufacturing Overhead Jan. $36,000 $24,000 ***$36,000*** Predetermined Overhead Rate is not given in the question It is assumed to be 150% of direct labor costs ***$24,000 X 150%