job costing and process costing 497588

Job Costing Problem

Hoover Inc. uses a job-order coding system. The company s inventory balances on February 1, the start of its fiscal year, were as follows:

During the year, the following transactions were completed:

1.

Raw materials were purchased on account, $215,221.

2.

Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and 30% indirect).

3.

Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor, $98,750; and selling and administrative salaries, $72,340.

4.

Utility costs were incurred in the factory, $79,233.

5.

Advertising costs were incurred. $110,600.

6.

Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities).

7.

Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets).

8.

Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost.

9.

Goods that cost $720,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

10.

Sales for the year totaled $1,293,300 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $725,825.

Submit an Excel document which each tab labeled by item number in good form that demonstrates the following:

1.

Prepare the journal entries to record the transactions for the year.

2.

Prepare the T-accounts for raw materials inventory, work in process inventory, finished goods inventory, manufacturing overhead, and cost of goods sold. Don t forget to enter the beginning balances in the inventory accounts.

3.

Is manufacturing overhead underapplied or overapplied for the year Prepare a journal entry to close this balance to cost of goods sold.

Production Data

Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, Blending, is given below for August:

The company uses the weighted-average method.

Submit an Excel document which each tab labeled by item number in good form that demonstrates the following:

1.

Compute the equivalent units of production.

2.

Compute the costs per equivalent unit for the month.

3.

Determine the cost of ending work in process inventory and of the units transferred out to the next department.

4.

Prepare a cost reconciliation schedule for the month.