Job Cost Sheets for Howard Manufacturing Are as Follows

question 68

Essay

Job cost sheets for Howard Manufacturing are as follows: Instructions
(a) Answer the following questions.
1. What was the balance in Work in Process Inventory on July 1 if these were the only unfinished jobs?
2. What was the predetermined overhead rate in June if overhead was applied on the basis of direct labor cost?
3. If July is the start of a new fiscal year and the overhead rate is 20% higher than in the preceding year how much overhead should be applied to Job 210 in July?
4. Assuming Job 210 is complete what is the total and unit cost of the job?
5. Assuming Job 211 is the only unfinished job at July 31 what is the balance in Work in Process Inventory on this date?
(b) Journalize the summary entries to record the assignment of costs to the jobs in July. (Note: Make one entry in total for each manufacturing cost element.)

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Definitions:

Market Testing

The process of evaluating consumer response to a product or service in a specific market before a full-scale launch.

Aggressive Salespeople

Sales professionals who use assertive and often pushy techniques to close deals or secure clients.

Candy Manufacturer

A company that specializes in producing sweets and confections.

Target Market

A specific group of potential customers at whom a company aims its products and services.