EX 2 Job Order Costing
1
JOB ORDER COSTING EXERCISES
EX-1
Good Samaritan Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room over-head. On January 1 of the current year, the annual operating room overhead is estimated to be:
Disposable supplies
$124,500
Depreciation expense
24,000
Utilities
15,300
Nurse salaries
188,000
Technician wages
47,200
Total operating room overhead
$399,000
The overhead costs will be assigned to procedures based on the number of surgical room hours. The
Medical Center expects to use the operating room an average of seven hours per day, six days per week. In addition, the operating room will be shut down two weeks per year for general repairs.
a. Determine the predetermined operating room overhead rate for the year.
b. LeVar Wilson had a 2.5-hour procedure on January 10. How much operating room overhead would be charged to his procedure, using the rate determined in (a)?
c. During January, the operating room was used 170 hours. The actual overhead costs incurred for
January were $31,800. Determine the overhead under- or over-applied for the period.
EX-2
The following account appears in the ledger after only part of the postings have been completed for
March:
Work in Process
Balance, March 1
$15,700
Direct materials
84,700
Direct labor
63,200
Factory overhead
92,100
2
Jobs finished during March are summarized as follows:
Job 320
$56,800
Job 327
$23,100
Job 326
74,600
Job 350
93,700
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at March 31.
EX-3
During February, Cardella Manufacturing works on two jobs: A16 and B17. Summary data concerning these jobs are as follows.
Manufacturing Overhead
Cardella Manufacturing uses a predetermined overhead
JOB ORDER COSTING EXERCISES
EX-1
Good Samaritan Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room over-head. On January 1 of the current year, the annual operating room overhead is estimated to be:
Disposable supplies
$124,500
Depreciation expense
24,000
Utilities
15,300
Nurse salaries
188,000
Technician wages
47,200
Total operating room overhead
$399,000
The overhead costs will be assigned to procedures based on the number of surgical room hours. The
Medical Center expects to use the operating room an average of seven hours per day, six days per week. In addition, the operating room will be shut down two weeks per year for general repairs.
a. Determine the predetermined operating room overhead rate for the year.
b. LeVar Wilson had a 2.5-hour procedure on January 10. How much operating room overhead would be charged to his procedure, using the rate determined in (a)?
c. During January, the operating room was used 170 hours. The actual overhead costs incurred for
January were $31,800. Determine the overhead under- or over-applied for the period.
EX-2
The following account appears in the ledger after only part of the postings have been completed for
March:
Work in Process
Balance, March 1
$15,700
Direct materials
84,700
Direct labor
63,200
Factory overhead
92,100
2
Jobs finished during March are summarized as follows:
Job 320
$56,800
Job 327
$23,100
Job 326
74,600
Job 350
93,700
a. Journalize the entry to record the jobs completed.
b. Determine the cost of the unfinished jobs at March 31.
EX-3
During February, Cardella Manufacturing works on two jobs: A16 and B17. Summary data concerning these jobs are as follows.
Manufacturing Overhead
Cardella Manufacturing uses a predetermined overhead