# Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs.

Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials \$22,600, direct labor \$13,560, and manufacturing overhead \$18,080. As of January 1, Job No. 49 had been completed at a cost of \$101,700 and was part of finished goods inventory. There was a \$16,950 balance in the Raw Materials Inventory account.

During the month of January, Deglman Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for \$137,860 and \$178,540, respectively. The following additional events occurred during the month.

1.

Don't use plagiarized sources. Get Your Custom Essay on
Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs.
Just from \$13/Page

Purchased         additional raw materials of \$101,700 on account.

2.

Incurred         factory labor costs of \$79,100. Of this amount \$18,080 related to         employer payroll taxes.

3.

Incurred         manufacturing overhead costs as follows: indirect materials \$19,210;         indirect labor \$22,600; depreciation expense on equipment \$21,470; and         various other manufacturing overhead costs on account \$18,080.

4.

Assigned         direct materials and direct labor to jobs as follows.

Job No.

Direct Materials

Direct Labor

50

\$11,300

\$5,650

51

44,070

28,250

52

33,900

22,600

Calculate   the predetermined overhead rate for 2014, assuming Degelman Company estimates   total manufacturing overhead costs of \$1,107,400, direct labor costs of \$791,000,   and direct labor hours of 22,600 for the year. (Round answer to the nearest whole percent, e.g. 25.)

%

SHOW     LIST OF ACCOUNTS

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.

Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.