Calwell Corp

question 81

Essay

Calwell Corp. uses a job order costing 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 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 Calwell's first year of operations:
(a) Make the necessary journal entries to charge the costs to the jobs started and to record the completion and sale of finished jobs.
(b) Calculate the ending balances in the Work in Process Inventory, Finished Goods Inventory, and Factory Overhead accounts. Does the Factory Overhead account balance indicate over- or underapplied overhead?

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Definitions:

Viscous

A physical property describing a fluid that is thick and sticky, offering resistance to flow, such as honey or glycerin.

Nephron

The functional unit of the kidney, responsible for the filtration and excretion of waste products from the blood and the regulation of electrolyte and fluid balance.

Edema

A medical condition characterized by the accumulation of excess fluid in the body's tissues, causing swelling.

Albumin

A protein commonly found in blood plasma that helps maintain blood volume and pressure by regulating osmotic forces.