141. Record in good journal entry format the following transactions:
1.April 10: 300 units of raw materials were purchased at $5.50.
2.April 15: 200 units of raw materials were requisitioned at $6.00 for production, Job 345.
3.April 25: 100 units of raw materials were requisitioned at $5.50 for production, Job 555.
April 10Materials1,650
Accounts Payable1,650
April 15Work in Process1,200
Materials1,200
April 25Work in Process550
Materials550
142. The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.
Work in Process28,000
Wages Payable28,000
(560 ´ $20) + (800 ´ $21) = $28,000
143. During the month of April, Cavy Company incurred factory overhead as follows:
Indirect materials$11,000
Factory supervision labor4,000
Utilities500
Depreciation (factory)700
Small tools300
Equipment rental750
Journalize the entry to record the factory overhead incurred during April.
Factory Overhead17,250
Materials11,000
Wages Payable4,000
Utilities500
Accumulated Depreciation700
Small Tools300
Equipment Rental750
144. Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. Determine (a) the predetermined factory overhead rate, (b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800, and (c) prepare the journal entry to apply factory overhead in April according to the predetermined overhead rate.
(a) $660,000 / 100,000 = $6.60
(b) Job 345: 560 hrs. ´ $6.60 = $3,696
Job 777: 800 hrs. ´ $6.60 = $5,280
(c)
Work in Process8,976
Factory Overhead8,976
145. The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.
$1,250,000 / 40,000 = $31.25 per machine hour
146. The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. What is the amount that will be applied to all of the jobs for the month of April?
4,780 hours ´ $31.25 = $149,375
147. The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. Prepare the journal entry to apply factory overhead.
Work in Process149,375
Factory Overhead149,375
148. At the end of April, Cavy Company had completed Job 766 and 765. Job 766 is for 675 units, and Job 765 is for 900 units. According to the individual job cost sheets the information is as follows:
Job
Direct Materials
Direct Labor
Machine Hours
Job 765$5,670$3,50027
Job 766$8,900$4,77544
Job 765 produced 152 units, and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job, and (b) the cost per unit at the end of April.
a) Job 765 = $14,570 ($5,670 + $3,500 + (27 ´ $200)
Job 766 = $22,475 ($8,900 + $4,775 + (44 ´ $200)
b) Job 765 = $95.86 ($14,570 / 152)
Job 766 = $89.90 ($22,475 / 250)
149. Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goods inventory was 5,000 units at $405,000. Determine the cost of goods sold for 20,000 units, assuming a FIFO cost flow.
$405,000 + (15,000 ´ $82.30) = $1,639,500
150. The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. If the actual factory overhead totaled $141,800, determine the over or under applied amount for the month.
$141,800 - $149,375 = $7,575 overapplied