Maurice Tutor

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Category > Accounting Posted 05 Aug 2017 My Price 12.00

Pearson Architectural Design

Pearson Architectural Design uses a job-order costing system and applies studio overhead to jobs on the basis of direct staff costs. Because Pearson Architectural Design is a service firm, the names of the accounts it uses are different from the names used in manufacturing companies. The following costs were recorded in January:

 

     
Cost of subcontracted work (comparable to direct materials) $ 231,400
Direct staff costs (comparable to direct labor) $ 76,300
Studio overhead (comparable to manufacturing overhead cost applied) $ 133,525
Cost of work completed (comparable to cost of goods manufactured) $ 389,100

 

There were no beginning inventories in January.

At the end of January, only one job was still in process. This job (the Krimmer Corporation Headquarters project) had been charged with $6,600 in direct staff costs.

 

 

Required:
1. Compute the predetermined overhead rate that was used during January.
   

 

 

2.

Complete the following job cost sheet for the partially completed Krimmer Corporation Headquarters project. (Hint: Cost of goods manufactured equals beginning work in process inventory plus manufacturing costs incurred less ending work in process inventory.) (Round your intermediate calculations to whole number.)
   

 

     
 
 
Job Cost Sheet  

Krimmer Corporation Headquarters Project

 

  
Costs of subcontracted work:  
Direct staff costs:  
Studio overhead:  
Total cost to January 31:  


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Answers

Maurice Tutor
(5)
Status NEW Posted 05 Aug 2017 10:08 PM My Price 12.00

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