Stockman Co. began 2010 with three jobs in process: 1 answer below »

(Journal entries; cost accumulation) 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 incurred was $602,800 and was associated with the jobs as follows:

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.

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