Solved:
Answered by AI, Verified by Human Experts
Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 49,900 Job 202 25,300 Total direct materials 75,200 Indirect materials 10,320 Total materials used $ 85,520 Time tickets show the following labor used for the month. Job 201 $ 40,900 Job 202 14,300 Total direct labor 55,200 Indirect labor 25,900 Total labor used $ 81,100 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 $168,860 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 $ 33,700 Rent on factory building (payable) 670 Factory utilities (payable) 970 Expired factory insurance 4,700 Total other factory overhead costs $ 40,040 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.
Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 49,900 Job 202 25,300 Total direct materials 75,200 Indirect materials 10,320 Total materials used $ 85,520 Time tickets show the following labor used for the month. Job 201 $ 40,900 Job 202 14,300 Total direct labor 55,200 Indirect labor 25,900 Total labor used $ 81,100 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 $168,860 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 $ 33,700 Rent on factory building (payable) 670 Factory utilities (payable) 970 Expired factory insurance 4,700 Total other factory overhead costs $ 40,040 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.
1. Thecost sheetsforJob 201andJob 202are as follows:Job 201 Job 202 TotalDirect materials $49,900 $25,300 $75,200Direct labor 40,900 14,300 55,200Overhead applied 39,920 20,240 60,160Total costs $130,720 $59,840 $190,5602.Gross profitfor the sale of Job 201 =$38,140($168,860 - $130,720)Data and Calculations:Cost of raw materials purchased = $101,700Job 201 Job 202 TotalDirect materials $49,900 $25,300 $75,200Direct labor 40,900 14,300 55,200Overhead applied 39,920 20,240 60,160Total costs $130,720$59,840 $190,560Sales $168,860Gross profit $38,140Thus, the cost ofJob 201 soldis$130,720with agross profitof$38,140.Learn more:brainly.com/question/24516871...