Chapter 16: In-Class Group Assignment | Study Guide

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High School Accounting
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2025
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Chloe Williams

AC 206 Chapter 16: In-Class Group Assignment Job Order Costing • • • Predetermined Overhead Rate (POHR) = $25 per direct labor hour (DLH). Two jobs this week: Job 401 and Job 402. Beginning WIP and Finished Goods = $0. Part A - Job Cost Sheets Direct Materials and Direct Labor: Job 401: DM=$900; DL=30 hours @ $20/hr. Job 402: DM=$600; DL=20 hours @ $20/hr. Apply FOH using the POHR ($25 per DLH). Job 401 Direct Materials: Direct Labor: Applied Factory Overhead: Total Job Cost: Job 402 Direct Materials: Direct Labor: Applied Overhead: Total Job Cost: Part B - Cost Flow Job 401 is completed and moved to Finished Goods, then sold for $2,500 on account. Cost transferred to Finished Goods = Cost of Goods Sold for Job 401 = Part C - Journal Entries Accounts to use: Raw Materials; Work in Process (WIP); Finished Goods; Accounts Receivable; Sales Revenue; Wages Payable (or Cash); Factory Overhead; Cost of Goods Sold. 1) Record direct materials (to WIP) 2) Record direct labor (to WIP) 3) Record factory overhead (to WIP) 4) Complete Job 401 (transfer to Finished Goods) 5) Sell Job 401 on account (remember two entries: sale + COGS)

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