Problem 1: Clara Inc. produce custom-mad floor tiles. During April 2006, the following information was obtained relating to operations and production;
1. Direct material purchased on account $174,000
2. Direct material issued to jobs, $163,800
3. Direct labor hours incurred, 3,400. All direct factory employees were paid $15 per hour.
4. Actual factor overhead costs incurred for the month totaled $68,700.
This overhead consisted of $18,000 of supervisor salaries, $21,500 of depreciation charges, $7,200 of insurance, $12,500 of indirect material, and $9,500 of utilities. Salaries, insurance, and utilities were paid in cash and indirect material was take from supplies inventory.
Problem 2: Over head is applied to production at the rate of $20 per direct labor hour. Beginning balances of Raw Material Inventory and Work in Process Inventor were respectively $4,300 and $22,400. Ending Work in Process Inventory was $4,700
a. Prepare journal entries for Tractions 1-5
b. Determine the balance in Raw material Inventory at the end of the month.
c. Determine the cost of the goods completed during April. If 10,000 similar units were completed, what was the cost per unit?
d. What is the amount of under applied or over applied overhead at the end of April?
Problem 3:
Work in Process Inventory
Beginning balance 136,000
Direct material 261,400 Cost of completed jobs ??
Direct labor 175,000
Applied over head 124,600
The beginning balance of 136,000 contained 5,000 direct labor hours. During January 14,000 direct labor hours were recorded. Only one job was still in process on January 31. That job had $41,500 in direct material and 3,700 direct labor hours assigned to it.
a. What was the predetmined over head application rate for 2006?
b. What was the average direct labor rate per hour?
c. What was the balance in Work in Process Inventory at the end of January?
d. What was the total cost of jobs completed in January?