Dina Corp Uses a Job Order Cost Accounting System

question 122

Essay

Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the costs incurred:

Actual overhead costs were $55,800. The predetermined overhead allocation rate is $2.40 per direct labor hour. During the year, Jobs 1010, 1012, and 1013 were completed. Also, Jobs 1010 and 1013 were sold for $387,000. Assuming that this is Dina's first year of operations:
(a) Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts.
(b) Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

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Definitions:

Thylakoids

Membrane-bound compartments inside chloroplasts and cyanobacteria, where the light-dependent reactions of photosynthesis occur.

Grana

Stacks of thylakoid membranes within the chloroplasts of plant cells, where photosynthesis takes place.

Tubulin Dimers

Tubulin dimers are protein molecules that polymerize to form microtubules, essential components of the cellular cytoskeleton involved in cell shape, transport, and division.

Microtubules

Cylindrical structures found within cells, made of protein, that help maintain cell shape and are involved in various cell functions like division and transportation.