ACCT230 Cost Accounting Portfolio Project
Question # 00197817
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Updated on: 02/15/2016 10:08 PM Due on: 03/16/2016
ACCT230 Cost Accounting
Portfolio Project
Submission 2
Problem 1
Pullman Inc completed Job 2525 on May 31, and there were no jobs in
process in the plant. Prior to June 1, the predetermined overhead application
rate for June was computed from the following data, based on an estimate of
5,000 direct labor hours:
The factory has one production department and uses the direct labor hour
method to apply factory overhead.
Three jobs are started during the month, and postings are made daily to the
job cost sheets from the materials requisitions and labor-time records. The
following schedule shows the jobs and amounts posted to the job cost
sheets:
The factory overhead control account was debited during the month for
actual factory overhead expenses of $27,000. On June 11, Job 2526 was
completed and delivered to the customer at a markup of 50% on
manufacturing cost. On June 24, Job 2527 was completed and transferred to
Finished Goods. On June 30, Job 2528 was still in process.
Required:
1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including
factory overhead applied when the job was completed or at the end of
the month for partially completed jobs.
2. Prepare journal entries as of June 30 for the following:
a. Applying factory overhead to production.
b. Closing the applied factory overhead account.
c. Closing the factory overhead account.
d. Transferring the cost of the completed jobs to finished
goods.
e. Recording the cost of the sale and the sale of Job 2526.
Problem 2:
Pullman Inc. has two production departments. The nature of the process is
such that no units remain in process in Finishing at the end of the period.
During the period, 10,000 units with a cost of $30,000 were transferred from
Assembly to Finishing. Finishing incurred costs of $8,800 for materials,
$7,200 for labor, and $8,800 for factory overhead, and finished 10,000 units
during the month.
Required:
a. Determine the unit cost for the month in Finishing.
b. Determine the unit cost of the products transferred to finished goods.
c. Prepare a statement of cost of goods manufactured for the month
ended January 31, 20XX, assuming that no further work was done in
Assembly during January.
Portfolio Project
Submission 2
Problem 1
Pullman Inc completed Job 2525 on May 31, and there were no jobs in
process in the plant. Prior to June 1, the predetermined overhead application
rate for June was computed from the following data, based on an estimate of
5,000 direct labor hours:
The factory has one production department and uses the direct labor hour
method to apply factory overhead.
Three jobs are started during the month, and postings are made daily to the
job cost sheets from the materials requisitions and labor-time records. The
following schedule shows the jobs and amounts posted to the job cost
sheets:
The factory overhead control account was debited during the month for
actual factory overhead expenses of $27,000. On June 11, Job 2526 was
completed and delivered to the customer at a markup of 50% on
manufacturing cost. On June 24, Job 2527 was completed and transferred to
Finished Goods. On June 30, Job 2528 was still in process.
Required:
1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including
factory overhead applied when the job was completed or at the end of
the month for partially completed jobs.
2. Prepare journal entries as of June 30 for the following:
a. Applying factory overhead to production.
b. Closing the applied factory overhead account.
c. Closing the factory overhead account.
d. Transferring the cost of the completed jobs to finished
goods.
e. Recording the cost of the sale and the sale of Job 2526.
Problem 2:
Pullman Inc. has two production departments. The nature of the process is
such that no units remain in process in Finishing at the end of the period.
During the period, 10,000 units with a cost of $30,000 were transferred from
Assembly to Finishing. Finishing incurred costs of $8,800 for materials,
$7,200 for labor, and $8,800 for factory overhead, and finished 10,000 units
during the month.
Required:
a. Determine the unit cost for the month in Finishing.
b. Determine the unit cost of the products transferred to finished goods.
c. Prepare a statement of cost of goods manufactured for the month
ended January 31, 20XX, assuming that no further work was done in
Assembly during January.
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Rating:
/5
Solution: ACCT230 Cost Accounting Portfolio Project