DataMOHDL CostsJob 248Job 249Job 250Job 251Job 252POAR Drop DownPOAR Drop Down 2290000145000DL Hours29012210099250Labor HourofDM2484325484831215518435DL...

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Data MOHDL CostsJob 248Job 249Job 250Job 251Job 252POAR Drop DownPOAR Drop Down 2 290000145000DL Hours29012210099250Labor Hourof DM2484325484831215518435DL Costper Labor Rate32Completed in Q1YesYesNoNoYesMachine Hour Quoted Sales Price7965421654189461054262467 Sale TypeCredit---Cash OH Info Plant Janitorial wages15,489 Sales Salaries Expense18,543 Delivery Expense1,500 Utilities for Plant paid immediately45,806 Rent on Plant paid immediately6,569 Customer Service Hotline Costs8,190 Plant Supervisor Wages5043 Plant Insurance Previously Paid2436 Plant Prop Taxes incurred (not paid)3457 Indirect Materials used during month8743 RM Purchased124648 RM Beg Bal12546 UNITS Beginning Work-in-Process Inventory125units Transferred in from Internal Assembly3845units Completed and transferred out to Testing2758units Ending Work-in-Process Inventory 25%complete for conversion COSTS Beginning Work-in-Process Inventory680 Transferred in from Internal Assembly21570 Costs added during September: Direct Materials5,486  Direct labor1004  Manufacturing overhead allocated3504 Beg WIP Information transferred in costs136 materials costs340 conversions costs204 CustomAns Req 1Compute Nerdzy Computer Company’s predetermined OH allocation rate for this year. Predetermined OH Rate =200% Tene Greenhood: Tene Greenhood: estimated MOH / est. DL Costs ofDL Cost MOH2900002 DL Costs145000 Labor Rate32Req 2Compute the total cost for each job. Job 248Job 249Job 250Job 251Job 252 DM Costs Tene Greenhood: Tene Greenhood: Pulled directly from the problem data. $ 24,843$ 2,548$ 4,831$ 2,155$ 18,435 Job Records for SeptemberDL Costs Tene Greenhood: Tene Greenhood: DL hours * DL Cost92803904320031688000 Job 248Job 249Job 250Job 251Job 252MOH Tene Greenhood: Tene Greenhood: Since MOH is based on DL Cost, you will multiply the above DL cost * the POAR that you found in req 1 1856078086400633616000 DL Hours29012210099250Total Cost$ 52,683$ 14,260$ 14,431$ 11,659$ 42,435 DM$ 24,843$ 2,548$ 4,831$ 2,155$ 18,435 Completed in Q1YesYesNoNoYes Quoted Sales Price7965421654189461054262467Req 3 Tene Greenhood: Tene Greenhood: **Almost all of the #s for these journal entries are given in the additional information in the problem data. Page 925 of the text has a summary of almost all of the same journal entries or ones very similar to these. Sale TypeCredit---CashRaw Materials Inventory$ 124,648 Accounts Payable$ 124,648 Purchased raw materials on account. Additional Information Plant Janitorial wages$ 15,489Work In Process Inventory Tene Greenhood: Tene Greenhood: These will be a combination of WIP (for direct costs) and MOH (for indirect costs). The direct costs are calculated in your above table and the indirect costs are going to come from the info on the left.  52,812 Sales Salaries Expense18,543Manufacturing Overhead8,743 Delivery Expense1,500Raw Materials Inventory61,555 Utilities for Plant paid immediately45,806Transferred direct and indirect materials to production. Rent on Plant paid immediately6,569 Customer Service Hotline Costs8,190Work In Process Inventory27,552 Plant Supervisor Wages5,043Manufacturing Overhead20,532 Plant Insurance Previously Paid2,436Salaries (and Wages) Payable48,084 Plant Prop Taxes incurred (not paid)3,457Assigned labor to monthly production Indirect Materials used during month8,743 RM Purchased124,648Manufacturing Overhead Tene Greenhood: Tene Greenhood: These next 4 transactions will all be DR to MOH. You are accumulating all of the indirect costs in the MOH account and then will later assign MOH costs to each specific job. I would also recommend keeping a T account of MOH because you will have to adjust it to zero it out at the end.  45,806 RM Beg Bal12,546Cash45,806 Paid plant utilities Manufacturing Overhead6,569 Cash6,569 Paid rent on plant These should have all been calculated as 200% of DL Cost Incorrect because of MOH error, points awarded for correct calculation. Manufacturing Overhead2,436 You used the beg. MOH, but this should be the indirect materials incurred during the month. Partial Credit. Prepaid Insurance2,436 Incorrect because of previous mistake, partial credit. To record insurance expense 52812, sum of DM from Req 2 27552, sum of DL from req 2Manufacturing Overhead3,457 55104, Sum of MOH from Req 2Property Tax Payable3,457 MOH, costs are accumulated in MOH and then allocated to the jobs. To accrue taxes. 109378, sum of job costs from job 248, 249, 252 52683, the total job cost from job 248 that you determined in req 2Work In Process Inventory Tene Greenhood: Tene Greenhood: In order to allocate OH to the jobs, you will DR WIP (increasing that inventory account) and CR MOH ( decreasing the MOH account). This decrease to MOH is important because you have been increasing that account with all of your indirect costs and now we are decreasing it by assigning those costs to the jobs. You already calculated the MOH that should be allocated to each job in Req 2, you just need to add all of those together. Tene Greenhood: Tene Greenhood: **Almost all of the #s for these journal entries are given in the additional information in the problem data. Page 925 of the text has a summary of almost all of the same journal entries or ones very similar to these. 55,104 42435, the total job cost from job 252 that you determined in req 2Manufacturing Overhead55,104 32439, I would recommend keeping a T account to track all the DR and CR to the MOH account (all of you accumulation and allocation), which will allow you to quickly see the balance, which will be the amount you need to adjust. Allocated overhead to jobs in progress Finished Goods Inventory Tene Greenhood: Tene Greenhood: In this journal you need to increase FG for the jobs that were completed and decrease WIP for those same jobs (it is really just a transaction of the movement). The “additional info” indicates which jobs are completed and Req 2 shows the total job costs for each of those jobs (all 3 jobs will be transferred to FG with one transaction).  109,378 Work In Process Inventory109,378 Transferred Completed jobs to finished goods inventory Accounts Receivable Tene Greenhood: Tene Greenhood: When we sell goods, we first show the actual sales revenue and an increase to either cash or A/R (check the additional info to see if we were paid cash or if we invoiced the customer along with the sales price). The second transaction is associated with the removal of that product from our inventory, so it includes an increase to the COGS and a decrease in the FG inventory account. The value associated with this portion of the transaction relates to the job cost determined in req 2. Same goes for the below transaction.  79,654 Sales Revenue79,654 Cost of Goods Sold52,683 Finished Goods Inventory52,683 To record sale of Job 248 (Hint: record sales transaction first and then inventory transaction next) Cash62,467 Sales Revenue62,467 Cost of Goods Sold42,435 Finished Goods Inventory42,435 To record sale of Job 252 Cost of Goods Sold Tene Greenhood: Tene Greenhood: As I mentioned in a previous comment, if you kept a T account of all of of your DR & CR entries to MOH you will be left with a balance that you need to close out (MOH needs to be zero at the end of the period). MOH gets closed out to COGS because we either over or under stated COGS by incorrectly predicting the amounts that were used to calculate the POAR. It is impossible to estimate those values exactly, so it is expected that we will have to complete this adjusting entry every period.  Tene Greenhood: Tene Greenhood: These will be a combination of WIP (for direct costs) and MOH (for indirect costs). The direct costs are calculated in your above table and the indirect costs are going to come from the info on the left.  Tene Greenhood: Tene Greenhood: When we sell goods, we first show the actual sales revenue and an increase to either cash or A/R (check the additional info to see if we were paid cash or if we invoiced the customer along with the sales price). The second transaction is associated with the removal of that product from our inventory, so it includes an increase to the COGS and a decrease in the FG inventory account. The value associated with this portion of the transaction relates to the job cost determined in req 2. Same goes for the below transaction.  Tene Greenhood: Tene Greenhood: estimated MOH / est. DL Costs Tene Greenhood: Tene Greenhood: Pulled directly from the problem data. 32,439 Manufacturing Overhead32,439 Adjusted Manufacturing Overhead Chart of Accounts Accounts Payable Accounts Receivable Accumulated Depletion Accumulated Depreciation Administrative Expenses Advertising Expense Allowance for Bad Debts Amortization Expense Available‐for‐Sale Debt Investments Bad Debts Expense Bank Expense Bonds Payable Building Cash Cash Short & Over Common Stock Common Stock Dividend Distributable Copyright Cost of Goods Sold Credit Card Expense Delivery Expense Depletion Expense Depreciation Expense Discount on Bonds Payable Dividend Revenue Dividends Dividends Payable Employee Bonus Expense Employee Bonus Payable Employee Income Taxes Payable Equipment Equity Investments Estimated Returns Inventory Estimated Warranty Payable Fair Value Adjustment ‐ Available‐for‐Sale Fair Value Adjustment ‐ Trading Federal Unemployment Taxes Payable FICA ‐ Medicare Taxes Payable FICA ‐ OASDI Taxes Payable Finished Goods Inventory Franchise Freight In Furniture Gain on Disposal Gain on Retirement of Bonds Payable Goodwill Held‐to‐Maturity Debt Investments Income Summary Income Tax Expense Income Tax Payable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Land Land Improvements Loss on Disposal Manufacturing Overhead Merchandise Inventory Mortgages Payable Natural Resources Notes Payable Notes Receivable Office Furniture Office Supplies Owner's Capital Owner's Withdrawals Paid‐In Capital From Treasury Stock Transactions Paid‐In Capital in Excess of Par ‐ Common Paid‐In Capital in Excess of Par ‐ Preferred Paid‐In Capital in Excess of Stated ‐ Common Patent Payroll Tax Expense Petty Cash Preferred Stock Premium on Bonds Payable Prepaid Insurance Prepaid Rent Property Tax Payable Purchase Discounts Purchase Returns and Allowances Purchases Raw Materials Inventory Refunds Payable Rent Expense Rent Payable Repairs and Maintenance Expense Retained Earnings Revenue From Investments Salaries (and Wages) Expense Salaries (and Wages) Payable Sales Discounts Forfeited Sales Revenue Sales Tax Payable Service Revenue State Unemployment Taxes Payable Supplies Expense Trademark Trading Debt Investments Treasury Stock ‐ Common Truck Unearned Revenue Unrealized Holding Gain ‐ Available‐for‐Sale Unrealized Holding Gain ‐ Fair Value Unrealized Holding Loss ‐ Available‐for‐Sale Unrealized Holding Loss ‐ Fair Value Utilities Expense Utilities Payable Vacation Benefits Expense Vacation Benefits Payable Warranty Expense Work In Process Inventory GenericAns NERDZY Computer Company Tene Greenhood: Tene Greenhood: Starting on page 975 of the eText you will find the info on how to prepare the production cost report for process with trsf in UNITSProduction Cost Report - External Assembly DEPARTMENT Beginning Work-in-Process Inventory125unitsMonth Ended September 30 Transferred in from Internal Assembly3845units Completed and transferred out to Testing2758unitsEquivalent Units Ending Work-in-Process Inventory 0.25complete for conversionUNITSPhysical UnitsTransferred InDirect MaterialsConversion Costs COSTSUnits to account for: Beginning Work-in-Process Inventory680Beginning work-in-process125 Transferred in from Internal Assembly21570Transferred In3,845 Costs added during September:Total units to account for3,970 Direct Materials5486  Direct labor1004Units accounted for:  Manufacturing overhead allocated3504Completed and transferred out2,7582,758 Tene Greenhood: Tene Greenhood: In all the processes that follow the first, there will be units and costs trsf in. The trsf in is just 100% of what you have on the left 2,7582,758 Tene Greenhood: Tene Greenhood: Because these units have been completed and trsf out, that means they are 100% complete and will be equal to far left column. Ending work-in-process1,2121,2121,212 Tene Greenhood: Tene Greenhood: The directions sheet indicates that materials are added at the
Answered 1 days AfterNov 14, 2022

Answer To: DataMOHDL CostsJob 248Job 249Job 250Job 251Job 252POAR Drop DownPOAR Drop Down...

Khushboo answered on Nov 16 2022
48 Votes
Data
    MOH    DL Costs            Job 248    Job 249    Job 250    Job 251    Job 252            POAR Drop Down    POAR Drop Down 2
    290000    145000        DL Hours    290    122    100    99    250            Labor Hour    of
                DM    24843    2548    4831    2155    18435            DL Cost    per
    Labor Rate    32        Completed in Q1    Yes    Yes    No    No    Yes            Machine Hour
                Quoted Sales Price    79654    21654    18946    10542    62467
                Sale Type    Credit    -    -    -    Cash
    OH Info
    Plant Janitorial wages        15,489
    Sales Salaries Expense        18,543
    Delivery Expense        1,500
    Utilities for Plant paid immediately        45,806
    Rent on Plant paid immediately        6,569
    Customer Service Hotline Costs        8,190
    Plant Supervisor Wages        5043
    Plant Insurance Previously Paid        2436
    Plant Prop Taxes incurred (not paid)        3457
    Indirect Materials used during month        8743
    RM Purchased        124648
    RM Beg Bal        12546
    UNITS
    Beginning Work-in-Process Inventory    125    units
    Transferred in from Internal Assembly    3845    uni
ts
    Completed and transferred out to Testing    2758    units
    Ending Work-in-Process Inventory     25%    complete for conversion
    COSTS
    Beginning Work-in-Process Inventory    680
    Transferred in from Internal Assembly    21570
    Costs added during September:
    Direct Materials    5,486
     Direct labor    1004
     Manufacturing overhead allocated    3504
    Beg WIP Information
    transferred in costs    136
    materials costs    340
    conversions costs    204
CustomAns
                                Req 1    Compute Nerdzy Computer Company’s predetermined OH allocation rate for this year.
                                    Predetermined OH Rate =            200%
Tene Greenhood: Tene Greenhood:
estimated MOH / est. DL Costs
    of    DL Cost
        MOH    290000        2
        DL Costs    145000
        Labor Rate    32                    Req 2    Compute the total cost for each job.
                                    Job 248    Job 249    Job 250    Job 251    Job 252
                                DM Costs
Tene Greenhood: Tene Greenhood:
Pulled directly from the problem data.     $ 24,843    $ 2,548    $ 4,831    $ 2,155    $ 18,435
    Job Records for September                            DL Costs
Tene Greenhood: Tene Greenhood:
DL hours * DL Cost    9280    3904    3200    3168    8000
        Job 248    Job 249    Job 250    Job 251    Job 252        MOH
Tene Greenhood: Tene Greenhood:
Since MOH is based on DL Cost, you will multiply the above DL cost * the POAR that you found in req 1
    18560    7808    6400    6336    16000
    DL Hours    290    122    100    99    250        Total Cost    $ 52,683    $ 14,260    $ 14,431    $ 11,659    $ 42,435
    DM    $ 24,843    $ 2,548    $ 4,831    $ 2,155    $ 18,435
    Completed in Q1    Yes    Yes    No    No    Yes
    Quoted Sales Price    79654    21654    18946    10542    62467        Req 3
Tene Greenhood: Tene Greenhood:
**Almost all of the #s for these journal entries are given in the additional information in the problem data. Page 925 of the text has a summary of almost all of the same journal entries or ones very similar to these.
    Sale Type    Credit    -    -    -    Cash        Raw Materials Inventory                $ 124,648
                                Accounts Payable                    $ 124,648
                                Purchased raw materials on account.
    Additional Information
    Plant Janitorial wages        $ 15,489                    Work In Process Inventory
Tene Greenhood: Tene Greenhood:
These will be a combination of WIP (for direct costs) and MOH (for indirect costs). The direct costs are calculated in your above table and the indirect costs are going to come from the info on the left. 
                52,812
    Sales Salaries Expense        18,543                    Manufacturing Overhead                8,743
    Delivery Expense        1,500                    Raw Materials Inventory                    61,555
    Utilities for Plant paid immediately        45,806                    Transferred direct and indirect materials to production.
    Rent on Plant paid immediately        6,569
    Customer Service Hotline Costs        8,190                    Work In Process Inventory                27,552
    Plant Supervisor Wages        5,043                    Manufacturing Overhead                20,532
    Plant Insurance Previously Paid        2,436                    Salaries (and Wages) Payable                    48,084
    Plant Prop Taxes incurred (not paid)        3,457                    Assigned labor to monthly production
    Indirect Materials used during month        8,743
    RM Purchased        124,648                    Manufacturing Overhead
Tene Greenhood: Tene Greenhood:
These next 4 transactions will all be DR to MOH. You are accumulating all of the indirect costs in the MOH account and then will later assign MOH costs to each specific job. I would also recommend keeping a T account of MOH because you will have to adjust it to zero it out at the end. 
                45,806
    RM Beg Bal        12,546                    Cash                    45,806
                                Paid plant utilities
                                Manufacturing Overhead                6,569
                                Cash                    6,569
                                Paid rent on plant
    These should have all been calculated as 200% of DL Cost
    Incorrect because of MOH error, points awarded for correct calculation.                             Manufacturing Overhead                2,436
    You used the beg. MOH, but this should be the indirect materials incurred during the month. Partial Credit.                             Prepaid Insurance                    2,436
    Incorrect because of previous mistake, partial credit.                             To record insurance expense
    52812, sum of DM from Req 2
    27552, sum of DL from req 2                            Manufacturing Overhead                3,457
     55104, Sum of MOH from Req 2                            Property Tax Payable                    3,457
    MOH, costs are accumulated in MOH and then allocated to the jobs.                             To accrue taxes.
    109378, sum of job costs from job 248, 249, 252
    52683, the total job cost from job 248 that you determined in req 2                            Work In Process Inventory
Tene Greenhood: Tene Greenhood:
In order to allocate OH to the jobs, you will DR WIP (increasing that inventory account) and CR MOH ( decreasing the MOH account). This decrease to MOH is important because you have been increasing that account with all of your indirect costs and now we are decreasing it by assigning those costs to the jobs. You already calculated the MOH that should be allocated to each job in Req 2, you just need to add all of those together.
    
Tene Greenhood: Tene Greenhood:
**Almost all of the #s for these journal entries are given in the additional information in the problem data. Page 925 of the text has a summary of almost all of the same journal entries or ones very similar to these.                 55,104
    42435, the total job cost from job 252 that you determined in req 2                            Manufacturing Overhead                    55,104
    32439, I would recommend keeping a T account to track all the DR and CR to the MOH account (all of you accumulation and allocation), which will allow you to quickly see the balance, which will be the amount you need to adjust.                             Allocated overhead to jobs in progress
                                Finished Goods Inventory
Tene Greenhood: Tene Greenhood:
In this journal you need to increase FG for the jobs that were completed and decrease WIP for those same jobs (it is really just a transaction of the movement). The “additional info” indicates which jobs are completed and Req 2 shows the total job costs for each of those jobs (all 3 jobs will be transferred to FG with one transaction). 
                109,378
                                Work In Process Inventory                    109,378
                                Transferred Completed jobs to finished goods inventory
                                Accounts Receivable
Tene Greenhood: Tene Greenhood:
When we sell goods, we first show the actual sales revenue and an increase to either cash or A/R (check the additional info to see if we were paid cash or if we invoiced the customer along with the sales price). The second transaction is associated with the removal of that product from our inventory, so it includes an increase to the COGS and a decrease in the FG inventory account. The value associated with this portion of the transaction relates to the job cost determined in req 2. Same goes for the below transaction. 
                79,654
                                Sales Revenue                    79,654
                                Cost of Goods Sold                52,683
                                Finished Goods Inventory                    52,683
                                To record sale of Job 248 (Hint: record sales transaction first and then inventory transaction next)
                                Cash                62,467
                                Sales Revenue                    62,467
                                Cost of Goods Sold                42,435
                                Finished Goods Inventory                    42,435
                                To record sale of Job 252
                                Cost of Goods Sold
Tene Greenhood: Tene Greenhood:
As I mentioned in a previous comment, if you kept a T account of all of of your DR & CR entries to MOH you will be left with a balance that you need to close out (MOH needs to be zero at the end of the period). MOH gets closed out to COGS because we either over or under stated COGS by incorrectly predicting the amounts that were used to calculate the POAR. It is impossible to estimate those values exactly, so it is expected that we will have to complete this adjusting entry every period. 
    
Tene Greenhood: Tene Greenhood:
These will be a combination of WIP (for direct costs) and MOH (for indirect costs). The direct costs are calculated in your above table and the indirect costs are going to come from the info on the left. 
    
Tene Greenhood: Tene Greenhood:
When we sell goods, we first show the actual sales revenue and an increase to either cash or A/R (check the additional info to see if we were paid cash or if we invoiced the customer along with the sales price). The second transaction is associated with the removal of that...
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