Matriarch Incorporated Uses a Job-Order Costing System and a Predetermined

question 101

Essay

Matriarch Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.
The following information pertains to November of the current year:
Job 10 Job 11 Job 12 Total
Work-in-process, Nov. 1 $16,000 $26,000 $38,000 $80,000
November production activity:
Materials requisitioned $4,000 $4,800 $7,200 $16,000
Direct labor cost $2,400 $3,600 $4,000 $10,000
Machine hours 400 700 900 2,000
Labor hours 120 180 200 500
Actual manufacturing overhead cost incurred in November was $61,000.
Required:
a. Compute the predetermined overhead application rate.
b. Determine the total cost associated with each job.
c. If jobs 10 and 12 were completed, prepared the journal entry to move the cost.
d. If job 10 was delivered to customers that paid $50,000 cash, prepare the journal
entries.
What is the gross profit for job 10?
e. Assuming no beginning work in process, what is the cost assigned to ending work in
process?
f. Assuming no beginning finished goods what is the cost assigned to ending finished goods?
g. How much was overhead over/underapplied?

Distinguish between different types of signs used in media content.

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Definitions:

Performance Targets

Specific goals set for an individual or team to achieve within a set timeframe, used to gauge performance.

Strategic Initiatives

High-level plans or actions aimed at achieving important goals or objectives within an organization's overall strategy.

Lean Principles

Principles associated with the lean enterprise that include reducing inventory, reducing lead time, reducing setup time, product-/customer-oriented layouts, employee involvement, pull scheduling, zero defects, and supply chain management.

Unexpected Downtime

Unplanned or unforeseen interruptions in a system's or facility's operations, leading to temporary cessation of services or production.