Accounting Assignment for chapter 4 PDF

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Accounting managerial Assignment with answers for chapter 4...

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Questions: Homework 3–1 Why aren’t actual manufacturing overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs? By definition, manufacturing overhead consists of costs that cannot be practically traced to products or jobs. Therefore, if these costs are to be assigned to products or jobs, they must be allocated rather than traced.

3–3 What is the purpose of the job cost sheet in a job-order costing system? The job cost sheet is used to record all costs that are assigned to a particular job. These costs include direct materials costs traced to the job, direct labor costs traced to the job, and manufacturing overhead costs applied to the job. When a job is completed, the job cost sheet is used to compute the unit product cost.

3–4 Explain how a sales order, a production order, a materials requisition form, and a labor time ticket are involved in producing and costing products. A sales order is issued after an agreement has been reached with a customer on quantities, prices, and shipment dates for goods. The sales order forms the basis for the production order. The production order specifies what is to be produced and forms the basis for the job cost sheet. The job cost sheet, in turn, is used to summarize the various production costs incurred to complete the job. These costs are entered on the job cost sheet

EXERCISE 3–3 Computing Job Costs Weaver Company’s predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-200: Direct materials.......... 200$ Direct labor................ 120$ Required: 1. What is the total manufacturing cost assigned to Job A-200? Manufacturing overhead = 18$*10 hours = 180$ Total cost = 200+120+180=500$ 2. If Job A-200 consists of 50 units, what is the average cost assigned to each unit included in the job?4 The average cost to each unit is = total cost / number of units = 500$ / 50$ = 10$...