Question: 1. Cost of materials issuances
An incomplete subsidiary ledger of wire cable for July is as follows:
a. Complete the materials issuances and balances for the wire cable subsidiary ledger.
b. Determine the balance of wire cable at the end of July.
c. Determine the total amount of materials transferred to Work in Process for July.
d. Explain how the materials ledger might be used as an aid in maintaining inventory quanti¬ties on hand.
2. Predetermined factory overhead rate
Ace Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
|
Engine parts
|
5325,000
|
|
Shop direct labor
|
296,000
|
|
Shop and repair equipment depreciation
|
18,000
|
|
Shop supervisor salaries
|
110,000
|
|
Shop property taxes
|
20,500
|
|
Shop supplies
|
7,500
|
|
Advertising expense
|
30,000
|
|
Administrative office salaries
|
75,000
|
|
Administrative office depreciation expense
|
8,000
|
|
Total costs and expenses
|
5890,000
|
The average shop direct labor rate is $18.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.