Posted by chunky on Wednesday, January 18, 2012 at 2:18pm.
Inventory Accounts and Cost of Goods Sold [LO 6] Smith Die Company manufactures cutting dies for the shoe industry. Each set of dies is custom designed to a customer’s templates. During the first week of May, six orders were received from customers. They were assigned job numbers 1005 to 1010. The following transactions occurred during the first week of May:
Smith Die purchased steel on account from Eastern City Steel costing $5,000. The company received and paid for supplies (indirect materials) from Mallard Supply costing $2,300.
Material requisitions indicated that materials were issued to the factory floor as follows:
The labor time ticket summary reflected the following costs for the week:
Overhead was applied to all jobs in process at 180 percent of direct labor cost. Jobs 1005, 1006, 1007, and 1008 were completed and transferred to finished goods. Jobs 1009 and 1010 were still in process at the end of the week. Jobs 1005, 1006, 1007, and 1008 were shipped to customers and billed at 150 percent of total job cost.
a. Calculate the total cost of each job.
b. Prepare journal entries to record the above information.
(Managerial Accounting, 4th Edition. John Wiley & Sons pp. 72 - 73).
Answer This Question
More Related Questions
- accounting - Eddings Company had a beginning inventory of 400 units of Product ...
- Accounting - Struggling answering this. - Updraft Systems, Inc., makes ...
- math - Eddings Company had a beginning inventory of 400 units of Product XNA at ...
- Accounting - formation about the Maxwell Company's inventory of one item during ...
- Finance accounting - Eddings Company had a beginning inventory of 400 units of ...
- business - At the end of January, Mineral Labs had inventory of 725 units, which...
- Account - Updraft Systems, Inc., makes paragliders for sale through specialty ...
- accounting - i. On February 27th, the company sold goods on account to CUSTOMER...
- accounting - Question 2.) Hawkeye Electric Company engaged in the following ...
- Accounting - Hawkeye Electric Company engaged in the following transactions ...