Stockman Co. began 2010 with three jobs in process: Type of Cost Job no. Direct
ID: 2435291 • 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:
indirect labor incurred was 54,000
direct labor in curred was 602,800 and was associated with the jobs as follpws:
Job No. Direct Labor Cost
247 17,400
251 8,800
253 21,000
254 136,600
255 145,000
256 94,600
257 179,400
3. material requisition forms issued during the year revealed the following:
indirect material issued totaled 76,000.
direct material issued totaled 466,400 and was associated with jobs as follows:
job no. direct material cost
247 12,400
251 6,200
253 16,800
254 105,200
255 119,800
256 72,800
257 133,200
4. overhead is applied to jobs on the basis of direct labor cost. management budgeted overhead of 240,000 and total direct labor cost of 600,000 for 2010. actual total factory overhead costs ( including indirect labor and indirect material) for the year totaled 244,400.
5. jobs #247 through #255 were completed and delivered to customers who paid for the goods in cash. the revenue on these jobs was 2,264,774.
a. journalize all preceding events.
b. determine the ending balances for the jobs still in process.
c. determine the cost of jobs sold,adjusted for underapplied or overapplied overhead.
Explanation / Answer
Direct labor 602,800 cash 602,800 being direct labor charges paid work in progress 602,800 direct labor 602,800 being direct labor transferred work in progress 76000 indirect material 76000 being indirect material transferred work in progress 466,400 Direct materials 466,400 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 transferrd cost of goods sold 3280 overheads 3280 being under applied overheads adjusted note: over heads are 40% on direct labor 602,800*40%=244,400 budgeted =241120 under applied-=3280 jobs work in progress Material labor overheads total Job 256 72800 94600 37840 205240 Job 257 133200 179400 71760 334360 206,000 274,000 109,600 589,600