A company uses a job order costing system and a redetermined overhead rate based on machine hours. At the begin of the year the company estimated manufacturing overhead would be $240000 and machine hours would be 8,000.
job 10 job 11 job 12 job 13 work in progress inventory $16,000 $ 26,000 $38,000 $80,000 for Dec 1
Dec production activity:
- materials requistioned $ 4000 48000 7200 16000
- direct labor cost $ 2400 3600 4000 10000
- machine hours 400 700 900 2000
- labor hours 120 180 200 500
- Actual manufacturing overhead cost incurred for Dec was $61,000
a) Determine total cost associated with each job and what is the cost assigned to ending work in progress
B) If jobs 10 and 12 were completed, prepare the journal entry to move the cost
c) If job 10 was sold to customers that paid $50000 cash prepare the journal entries