Information on Kwon Manufacturings activities for its first month of operations follows: ...
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Information on Kwon Manufacturings activities for its first month of operations follows:
Purchased $101,600 of raw materials on credit. Materials requisitions show the following materials used for the month.
Job 201 $ 49,800 Job 202 25,200 Total direct materials 75,000 Indirect materials 10,220 Total materials used $ 85,220
Time tickets show the following labor used for the month.
Job 201 $ 40,800 Job 202 14,200 Total direct labor 55,000 Indirect labor 25,800 Total labor used $ 80,800
Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $168,560 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month.
Depreciation of factory equipment $ 33,600 Rent on factory building (payable) 660 Factory utilities (payable) 960 Expired factory insurance 4,600 Total other factory overhead costs $ 39,820 1. Prepare a job cost sheet for Job 201 and for Job 202 for the month. 2. Compute gross profit on the sale of Job 201.
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