Job Costing

Cost Flows; Application of Overhead
Erkens Company uses a job-costing system with normal costing and applies factory overhead on the basis of machine hours.
At the beginning of the year, management estimated that the company would incur $1,980,000 of factory overhead costs and
Erkens Company recorded the following events during the month of april:
Particulars Qty Cost/unit Total Cost

a. Purchased mterials on account 180,000 5 900,000
b. Issued materials to production
Direct 105,000 5 525,000
Indirect 15,000 5 75,000
c. Incurred labor costs
Direct 240,000
Indirect 40,000
d. Depreciation of Equipment 75,700
e. Insurance for the manufacturing property 3,500
f. Utilities and other misc. items 8,500
g. Completed jobs and transferred to FGI account
Job H11 7,500
Job G28 77,000
h. Shipped Job G28 and invoiced at 35% above cost
i. Used 7,700 machine hours during April 7,700 30 231,000
Actual overhead costs 202,700
Overhead Variance 28,300
Required
1. Compute Erkens Company's predetermined overhead rate for the year.
2. Prepare journal entries for April.
3. Compute for overhead variance and close into COGS in April 30.
e basis of machine hours.
factory overhead costs and use 66,000 machine hours.
Answers:
1. Predetermined overhead rate: (1,980,000/66,000) 30
2. Journal Entries for April

Account Title Debit Credit
Materials Inventory 900,000
Accounts Payable 900,000
a. Purchased mterials on account
Work-in-Process Inventory 525,000

Factory Overhead 75,000
Materials Inventory 600,000
b. Issued materials to production

Accrued Payroll 280,000
c. Incurred labor costs

Accumulated Depreciation 75,700
d. Depreciation of Equipment

Prepaid Insurance 3,500
e. Insurance for the manufacturing property

Cash 8,500
f. Utilities and other misc. items for the manufacturing plant
Finished Goods Inventory - Job H11 7,500

Finished Goods Inventory - Job G28 77,000
g. Completed jobs and transferred to FGI account
Accounts Receivable 103,950

Cost of Goods Sold 77,000
Sales 103,950
Finished Goods Inventory - Job G28 77,000
h. Shipped Job G28 and invoiced at 35% above cost
i. Overhead allocation for April - 7700 machine hours
3. Adjust overapplied overhead

Cost of Goods Sold 28,300
Adjustment of overapplied overhead for the month of April
Job Costing
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to ap
For the current year, estimated direct labor hours are 95,000 and estimted factory overhead is $617,500.
The following information is for September of the current year. Job A was completed during September, and Job B was started
September 1, Inventories Required:

Materials Inventory 7,500 1. What is the total cost of Job A?
Work-in-process inventory (All Job A) 31,200 2. What is the total factory overhead applied durin
Finished goods inventory 67,000 3. What is the overapplied or underapplied overhe
Material purchases 104,000
Direct materials requisitioned Answers:
Job A 65,000 1. Total cost of Job A
Job B 33,500 Work-in-process, beg.
Direct labor hours Costs added in Sep
Job A 4,200 Direct materials
Job B 3,500 Direct labor
Labor costs incurred Factory overhead
Direct labor ($8.50/hour) 65,450 Total cost of Job A
Indirect labor 13,500
Supervisory salaries 6,000 2. Total overhead applied in September.
Rental costs Total direct labor hours
Factory 7,000 Multiply: overhead rate
Administrative offices 1,800 Applied overhead - September
Total equipment depreciation costs
Factory 7,500 3. Total overhead variance
Administrative offices 1,600 Applied overhead
Indirect materials used 12,000 Actual overhead
Predetermined overhead rate: $617,500/95,000hrs = 6.5 Overapplied overhead - September
based on direct labor hours to apply overhead to individual jobs.
eptember, and Job B was started but not finished.
l cost of Job A?
l factory overhead applied during September?
rapplied or underapplied overhead for September?
31,200
65,000
35,700
27,300 128,000
159,200
applied in September.
7,700
6.5
- September 50,050
50,050
46,000
ead - September 4,050
Application of Overhead
Whitley Construction Company is in the home remodeling business. Whitley has three teams of highly skilled employees, each
is led by an experienced employee who coordinates the work done on each job. As the needs of different jobs change, some t
determine job costs and to serve as a basis for bidding and pricing the jobs. Direct materials and direct labor are easily traced
construction equipment, some supervisory labor, the cost of bidding for new customers, and administrative costs. Whitley use
clients: Harrison, Barnes, and Tyler. The cost data for each of the three jobs are summarized below.
Job Direct Materials Direct Labor Hours Direct Labor Cost

Harrison 6,753 45 15,367
Barnes 13,229 88 22,184
Tyler 42,338 133 49,654
Budgeted Data
Direct materials 450,000
Direct labor costs 600,000
Direct labor hours 22,500
Total overhead 495,000
Overhead Rate 22
Required:
1. Calculate the total cost of each of the three jobs.
2. Suppose that for the entire year, Whitley used 23,800 labor hours and total actual overhead was $525,000.
What is the amount of underapplied or overapplied overhead?
3. Whitley’s business is very seasonal, with summer being the period of high activity and winter the low
period. How would seasonality potentially affect the job costing at the company?
4. What are some of the potential sustainability issues for Whitley?
5. Whitley has chosen direct labor hours as the cost-driver base for applying overhead. What are some
alternative cost drivers, and how would you choose among them?
hree teams of highly skilled employees, each of whom has multiple skills involving carpentry, painting, and other home remodeling activitie
the needs of different jobs change, some team members may be shifted to other teams for short periods of time. Whitley uses a job cos
ct materials and direct labor are easily traced to each job, using Whitley’s cost tracking software. Overhead consists of the purchase and ma
omers, and administrative costs. Whitley uses an annual overhead rate based on direct labor hours. Whitley has recently completed work fo
mmarized below.
X
Answers:
1. Determine total cost for each job.
Harrison Barnes Tyler
Direct Materials 6,753 13,229 42,338
Direct Labor 15,367 22,184 49,654
Overhead 990 1,936 2,926
Total Cost 23,110 37,349 94,918
2. Overhead Variance
Applied overhead (23,800 x 22) 523,600
Actual overhead 525,000
Underapplied overhead - 1,400
3. Intuition: no effect. Job costing is consistent with matching principle.

al overhead was $525,000. Okay, so no effect on costing method, but will affect revenue and probably cost of materials.
ty and winter the low 4. Sustainability issues
ead. What are some 5. Alternative cost drivers

If material-intensive, you can use it as a basis of determining your overhead.
other home remodeling activities. Each team
of time. Whitley uses a job costing system to
consists of the purchase and maintenance of
y has recently completed work for three
and probably cost of materials.
your overhead.
Progressive Painting Company (PPC) is a successful company in commercial and residential painting.
PPC has a variety of jobs: new construction, repair and repainting existing structures, and restoration of very old buildings and
The company is known for the quality and reliability of its work, and customers expect to pay a little more for those benefits.
One of the company’s core values is sustainability, and it insists on using the most environmentally friendly paints and material
it has refused jobs where the client required a more environmentally harmful paint than PPC thought was appropriate for the a
The company’s commitment to sustainability has lost PPC some jobs, but it has also attracted a loyal and growing customer bas
The company uses job costing and applies overhead on the basis of direct labor hours.
Overhead for the company consists of painting equipment, trucks, supervisory labor, supplies, and administrative operation co
The total budgeted costs for the year are shown below.
Budgeted Data
Direct materials 2,900,000 Material Labor
Gallons of paint 20,000 145 158.33 20.36
Direct labor dollars 750,000 121.05 20.70
Direct labor hours 33,500 22.39
Total overhead 360,125
Overhead Rate 10.75
PPC has just completed two jobs:

Job Direct Materials Gallons of Paint Direct Labor Cost Direct Labor Hours
Prevette 3,800 24 855 42
Harmon 4,600 38 1,366 66
Required:
1. Determine the total cost of each job.
2. The Prevette job required oil-based paint and the cleanup after the job required the use of chemicals
that, after use, had to be disposed of in an environmentally appropriate way. In contrast, the Harmon
job required water-based paint and the job cleanup was very quick and simple and involved no harmful
chemicals. Does the job costing in part 1 of this question capture the difference between the two jobs in
regard to the types of paint used? Do you think the costing system should capture this difference, if any,
and if so, how do you think the costing system should be changed?
tion of very old buildings and homes.
ttle more for those benefits.
ly friendly paints and materials in its work;
ught was appropriate for the application.
oyal and growing customer base.
d administrative operation costs.
Answers:
1. Determine total cost for each job.
Prevette Harmon
Direct Materials 3,800.0 4,600.0
Direct Labor 855.0 1,366.0
Overhead 451.5 709.5
Total Cost 5,106.5 6,675.5
2. For discussion
Yes, cleanup cost must be accounted for.
Plantwide vs. Departmental Overhead Rate
Ryan Corporation manufactures auto steering systems.
Cost estimates for one unit of the product for the year follow:
A B
Direct Materials 200
Direct Labor ($12/hr) 300 180 120
Machine Hours 20 5 15
Direct Labor hours 25 15 10
This product requires 15 hours of direct labor in Department A and 10 hours in Department B. Also,
it requires 5 machine hours in Department A and 15 machine hours in Department B. The factory
overhead costs estimated in these two departments follow:
A B Total
Variable Cost 150,000 80,000 230,000
Fixed Cost 94,000 163,000 257,000
Total 244,000 243,000 487,000
Management expects the firm to produce 1,000 units during the year.
Required
1. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined
plantwide factory overhead rate.
2. If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate?
Notes:
You will create an entry only for the abnormal spoilage because the cost of 2.5% normal spoilage is
already imputed in the budgeted/applied overhead. This abnormal spoilage will be a reduction to your WIP.
We create an inventory of spoiled units for the 4100 units that can still be sold at $7 each.
Answers:
1. Plantwide factory overhead rate - direct labor
Budgeted annual 487,000
Budgeted annual 25,000
Plantwide FOH r 19.48
2. Plantwide factory overhead rate - machine hours

t A and 10 hours in Department B. Also, Budgeted annual 487,000
e hours in Department B. The factory Budgeted annual 20,000
Plantwide FOH r 24.35
3. Departmental overhead
Direct labor hou A
Budgeted DL hou 15,000
Budgeted overhe 19.48
Departmental OH 292,200
Machine hours A
Budgeted machin 5,000
Budgeted overhe 24.35
Departmental OH 121,750
f direct labor hours. Compute the predetermined
4. For discussion
hours, what would be the plantwide overhead rate?
A
ause the cost of 2.5% normal spoilage is Variable Cost 150,000
bnormal spoilage will be a reduction to your WIP. Fixed Cost 94,000
hat can still be sold at $7 each. Total 244,000
Budgeted direct 15,000
Budgeted machine hours
Departmental OH 16.27
overhead rate - direct labor
overhead rate - machine hours
3. Review results and costs for Job N1192-122.
Units Cost/unit Total Cost

Units transferred out 122,000 163,000 +RC[-2]*RC[-1]
Good units 117,000 163,000 +RC[-2]*RC[-1]
Spoiled 5,000 163,000 +RC[-2]*RC[-1]
Normal spoilage = 2.5% +R[14]C*0.025 57 +RC[-2]*RC[-1]
Abnormal spoilage #VALUE! 57 +RC[-2]*RC[-1] spoilage in excess of normal spoilage rate o
Recoverable amount 4100*7
#VALUE!
Normal +R[-1]C*(3000/5000)
Abnormal +R[-2]C*(2000/5000)
3a. Normal input required to yield 117,000 good units.
Required yield 117,000

Divide by: 97.5%
Required input 120,000
Cost per unit 57
Required input in costs +R[-2]C*R[-1]C
3b. Journal entry

Inventory of spoiled units
#VALUE!
+RC[-2]*RC[-1]
This is for spoilage lang - nalito na me. Hahaha
JE's Entry - correct one

Inventory for good units 117000*57
Inventory for spoiled units 4100*7
FG Inventory (normal spoilage) +R[-1]C*(3000/5000)
Loss from abnormal spoilage +R[-2]C*(2000/5000)
0
n excess of normal spoilage rate of 2.5%
Work in process inventory for Carston Inc. at the beginning of the year was a single job, Job T114:
Job # Materials Labor Overhead Total

T114 31,500 16,250 28,750 76,500
The company’s budgeted costs for the year are as follows:

Budgeted overhead
Variable
Indirect materials 68,000
Employee benefits 28,000
Fixed
Supervision 13,000
Depreciation 15,000
Total 180,000
Budgeted direct labor dollars 90,000
Rate per direct labor dollar 200%
The company’s actual costs incurred during the year are as follows:
Incurred by Jobs not given

Job# Materials Labor ($) Applied OH Total
T114 2,000 10,000 20,000 12,000
T119 24,000 18,000 36,000 42,000
T133 8,000 34,000 68,000 42,000
T136 1,000 16,000 32,000 17,000
Total 35,000 78,000 156,000 113,000
Notes:
You will create an entry only for the abnormal spoilage because the cost of 2.5% normal -
already imputed in the budgeted/applied overhead. This abno 50,000 50,000
We create an inventory of spoiled units for the 4100 units that can still be 33,000 33,000
15,000 15,000
Supervision 12,000 12,000
Total - 62,000 48,000 110,000
Required
1. What was the actual factory overhead for Carston Inc. for the year?
2. What was overapplied or underapplied overhead for the year?
3. Job T114 was the only job completed and sold in the year. What amount was included in the Cost o
Goods Sold account for this job?
4. What was the amount of work-in-process inventory at the end of the year?
1. Actual factory overhead for the year

Actual OH Job#
Indirect materials and supplies - T114
Indirect labor 50,000 T119
Employee benefits 33,000 T133
Depreciation 15,000 T136
3. Review results and costs for Job 12,000

Units transferred out 122,000 - +RC[-2]*RC[-1]
Good units 117,000 - +RC[-2]*RC[-1]
Spoiled 5,000 - +RC[-2]*RC[-1]
Abnormal spoilage #VALUE! 57 +RC[-2]*RC[-
#VALUE!
Normal +R[-1]C*(3000/5000)
Abnormal +R[-2]C*(2000/5000)
#REF!
Direct labor
Required yield 117,000 T133
Divide by: 97.5% 8,000
Required input 120,000 34,000
Cost per unit 57 68,000
Required input in costs +R[-2]C*R[-1]C 110,000
T136
3b. Journal entry 1,000
#VALUE! -
+RC[-2]*RC[-1 1,000

0
amount was included in the Cost of
Applied OH
20,000
36,000
68,000
32,000
-
156,000
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
spoilage in excess of normal spoilage rate of 2.5%
+R[-1]C*(3000/5000)
+R[-2]C*(2000/5000)
Total
1,000
-
-
1,000
The following information applies to the O’Donnell Company for March production. There are only two jobs (X and Y) in produc
a. Purchased direct materials and indirect materials with the following summary of receiving reports:
Material A 16,000
Material B 12,000
Indirect Materials 3,000
Total 31,000
b. Issued direct materials and indirect materials with this summary of requisitions:
Job X Job Y Total

Material A 8,000 16,000 24,000
Material B 3,000 8,000 11,000
Subtotal 11,000 24,000 35,000
Total 74,000
c. Factory labor incurred is summarized by these time tickets:
Job X Job Y Total

Direct labor 22,000 15,000 37,000
Total 65,000
d. Factory utilities, factory depreciation, and factory insurance incurred is summarized as follows:
Notes:
Job X incurred 1,100 machine hours; Job Y used 800 machine hours.
Total #VALUE!
Factory Overhead Rate 46
f. Job X was completed; Job Y was still in process at the end of March.
The company closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of
o jobs (X and Y) in production in March.
Units Cost/unit
Units transferred out 122,000 -
Good units 117,000 -
Spoiled 5,000 -
Normal spoilage = 2.5% +R[14]C*0.025 57
Abnormal spoilage #VALUE! 57
Recoverable amount
Normal
Abnormal

Divide by: 97.5%
Cost per unit 57
Required input in costs +R[-2]C*R[-1]C
3b. Journal entry

Job X #VALUE!
Job Y 800 +RC[-2]*RC[-1]

Job Y 0
Required:
1. Calculate the total manufacturing cost for Job X and Job Y for March.
2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold
account will be increased or decreased by the adjustment.
1. Manufacturing cost for each job.
Direct materials
Direct labor
Applied overhead
Total
Total Cost
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
+RC[-2]*RC[-1]
4100*7
#VALUE!
+R[-1]C*(3000/5000)
+R[-2]C*(2000/5000)
Indirect materials
Indirect labor
Depreciation
Insurance
Total Actual OH
RC[-2]*RC[-1]
Job X Job Y
11,000 24,000
22,000 15,000
#VALUE! 36,800
#VALUE! 75,800
#VALUE! --> Total manufacturing cost
Applied overhead 50,600

Applied OH Actual overhead 87,500
1,100 Underapplied overhead - 36,900
1,100 Underapplied overhead is adjusted to increase cost of goods sold.
46
50,600
39,000
28,000
18,000
2,500
87,500
The following information is for Punta Company for July:
a. Applied factory overhead costs to jobs at the predetermined rate of $42.50 per labor hour. Job S incurred 6,175 labor hours;
b. Shipped Job S to customers during July. Job S had a gross margin of 24% based on manufacturing cost.
c. Job T was still in process at the end of July.
d. Closed the overapplied or underapplied overhead to the Cost of Goods Sold account at the end of July.
e. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows:
Utilities 14,250
Depreciation 45,000
Insurance 18,000
Total 77,250
f. Direct materials and indirect materials used are as follows:
Job S Job T Total

Material A 28,500 71,250 99,750
Material B 12,000 35,000 47,000
Subtotal 40,500 106,250 146,750
Total 357,750
g. Factory labor incurred for the two jobs and indirect labor are as follows:
Job S Job T Total

Direct labor 55,500 45,000 100,500
Total 233,500
Notes:
You will create an entry only for the abnormal spoilage because the cost of 2.5% normal spoi
already imputed in the budgeted/applied overhead. This abnormal spoilage will be a reduct
labor hour. Job S incurred 6,175 labor hours; Job T used 4,275 labor hours.
on manufacturing cost.
count at the end of July.

arized as follows:
Answers:
1. Manufacturing cost for each job.


Units transferred out 122,000 35,000 +RC[-2]*RC[-1]
Good units 117,000 35,000 +RC[-2]*RC[-1]
Spoiled 5,000 35,000 +RC[-2]*RC[-1]
Abnormal spoilage #VALUE! 57 +RC[-2]*RC[-1]
#VALUE!
Normal +R[-1]C*(3000/5000)
Abnormal +R[-2]C*(2000/5000)

Divide by: 97.5% Budgeted OH rate
Required input 120,000 Total Applied OH
Cost per unit 57
Required input in costs +R[-2]C*R[-1]C Indirect materials
Indirect labor
Utilities
3b. Journal entry Depreciation
#VALUE! Total Actual OH
+RC[-2]*RC[-1]

0
Job S Job T
106,250
40,500 45,000
55,500 181,688
262,438 332,938
358,438

Applied overhead #REF!
Actual overhead 421,250
Applied OH Overapplied overhead #REF!
6,175
4,275 Overapplied overhead is adjusted to decrease cost of goods sold.
43
#REF!
211,000
133,000
14,250
45,000
18,000
421,250
Spoilage, Rework, and Scrap (appendix)
Richport Company manufactures products that often require specification changes or modifications to meet customer needs. C
Although the specification changes and modifications are commonplace, Richport has been able to establish a normal spoilag
The company recognizes normal spoilage during the budgeting process and classifies it as a component of factory overhead.
Thus, the predetermined overhead rate used to apply factory overhead costs to jobs includes an allowance for net spoilage cos
If spoilage on a job exceeds the normal rate, it is considered abnormal and then must be analyzed and the cause of the spoilag
Randa Duncan, one of Richport’s inspection managers, has been reviewing the output of Job N1192-122 that was recently com
A total of 122,000 units had been started for the job, and 5,000 units were rejected at final inspection, meaning that the job yi
Randa noted that 900 of the first units produced were rejected due to a very unusual design defect that was corrected immedi
Randa was unable to identify a pattern for the remaining 4,100 rejected units. They can be sold at a salvage value of $7 per un
Although the job is completed, all of these costs are still in the Work-in-Process Inventory account (i.e., the cost of the complet
Total Cost Cost/unit

Direct materials 2,196,000 18
Direct labor 1,830,000 15
Applied factory overhead 2,928,000 24
Total 6,954,000 57
Required
1. Explain the distinction between normal and abnormal spoilage.
2. Distinguish between spoiled units, rework units, and scrap.
3. Review the results and costs for Job N1192-122.
a. Prepare an analysis separating the spoiled units into normal and abnormal spoilage by first determining
the normal input required to yield 117,000 good units.
b. Prepare the appropriate journal entries to account for Job N1192-122.
Notes:
tions to meet customer needs. Consequently, Richport employs a job costing system for its operations.
ble to establish a normal spoilage rate of 2.5% of good units produced (before spoilage).
mponent of factory overhead.
n allowance for net spoilage cost for normal spoilage.
zed and the cause of the spoilage must be submitted to management.
1192-122 that was recently completed.

pection, meaning that the job yielded 117,000 good units.
efect that was corrected immediately; no more units were rejected for this reason.
d at a salvage value of $7 per unit. The total costs accumulated for all 122,000 units of Job N1192-122 follow.
unt (i.e., the cost of the completed job has not been transferred to the Finished Goods Inventory account).

Units transferred out 122,000 57 6,954,000
Good units 117,000 57 6,669,000
Spoiled 5,000 57 285,000
Normal spoilage = 2.5% 3,000 57 171,000
Abnormal spoilage 2,000 57 114,000
Recoverable amount 28,700
256,300
Normal 153,780
Abnormal 102,520

on to your WIP. Divide by: 97.5%
Cost per unit 57
Required input in costs 6,840,000
3b. Journal entry

Inventory of spoiled units 28,700
Loss on abnormal spoilage 85,300
Work in process inventory 114,000

Inventory for good units 6,669,000
Inventory for spoiled units 28,700
FG Inventory (normal spoilage) 153,780
Loss from abnormal spoilage 102,520
Work in process inventory 6,954,000
Yo Jeni
Composed of
122000 5000
117000 97.50% 120000
Normal
Abnormal
Cost
171,000
114,000
Total 285,000
Less: Spoil 28,700
256,300
Inventory for spoiled units

FGI (normal)
Loss from spoilage (abnormal)
FGI (good units)
WIP Inventory
< Expected Good
3000
2000
< should be distributed accordingly

153,780
102,520
Inventory for spoiled units 28700

FGI (normal) 153780
Loss from spoilage (abnormal) 102520
FGI (good units) 6669000
WIP Inventory 6954000

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Cost Flows; Application of Overhead

Particulars Qty Cost/unit Total Cost

2. Journal Entries for April

Work-in-Process Inventory 525,000

Work-in-Process Inventory 240,000

Factory Overhead 75,700

Factory Overhead 3,500

Factory Overhead 8,500

Finished Goods Inventory - Job H11 7,500

Accounts Receivable 103,950

3. Adjust overapplied overhead

September 1, Inventories Required:

eptember, and Job B was started but not finished.

Job Direct Materials Direct Labor Hours Direct Labor Cost

3. Intuition: no effect. Job costing is consistent with matching principle.

ty and winter the low 4. Sustainability issues

ead. What are some 5. Alternative cost drivers

and probably cost of materials.

PPC has just completed two jobs:

d administrative operation costs.

2. Plantwide factory overhead rate - machine hours

overhead rate - machine hours

3. Review results and costs for Job N1192-122.

Units Cost/unit Total Cost

3a. Normal input required to yield 117,000 good units.

Required yield 117,000

3b. Journal entry

JE's Entry - correct one

Job # Materials Labor Overhead Total

The company’s budgeted costs for the year are as follows:

Incurred by Jobs not given

1. Actual factory overhead for the year

Units Cost/unit Total Cost

JE's Entry - correct one

Job X Job Y Total

c. Factory labor incurred is summarized by these time tickets:

Job X Job Y Total

Factory Overhead Rate 46

3. Review results and costs for Job N1192-122.

3a. Normal input required to yield 117,000 good units.

Required yield 117,000

3b. Journal entry

JE's Entry - correct one

1. Manufacturing cost for each job.

Applied overhead 50,600

f. Direct materials and indirect materials used are as follows:

Job S Job T Total

Job S Job T Total

count at the end of July.

1. Manufacturing cost for each job.

Units Cost/unit Total Cost

3a. Normal input required to yield 117,000 good units.

Required yield 117,000

JE's Entry - correct one

spoilage in excess of normal spoilage rate of 2.5%

Total Cost Cost/unit

1192-122 that was recently completed.

3. Review results and costs for Job N1192-122.

Units Cost/unit Total Cost

3a. Normal input required to yield 117,000 good units.

Required yield 117,000

3b. Journal entry

JE's Entry - correct one

Inventory for spoiled units