Essay on Accounting
In January, Reyes Tool & Dye requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600.
During January, time tickets show that the factory labor of $5,000 was used as follows: Job 1 $1,200, Job 2 $1,600 Job 3 $1,400, and general factory use $800.
Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.) | Job 1 | | Date | Direct Materials | Direct Labor | | 1/31 | 900 | 0 | | 1/31 | 0 | 1200 |
| Job 2 | | Date | Direct Materials | Direct Labor | | 1/31 | 1200 | 0 | | 1/31 | 0 | 1600 |
| Job 3 | | Date | Direct Materials | Direct Labor …show more content…
Peter Catalano's Verde Vineyards in Oakville, California produces three varieties of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Kyle Ward, has identified the following activities as cost pools for accumulating overhead and assigning it to products. For each of Verde's fifteen activity cost pools, identify a probable cost driver that might be used to assign overhead costs to its three wine varieties. 1. | Culling and replanting. Dead or overcrowded vines are culled, and new vines are planted or relocated. (Separate vineyards by variety.) | Labor hours | 2. | Tying. The posts and wires are reset, and vines are tied to the wires for the dormant season. | Labor hours | 3. | Trimming. At the end of the harvest the vines are cut and trimmed back in preparation for the next season. | Labor hours | 4. | Spraying. The vines are sprayed with chemicals for protection against insects and fungi. | Gallons of chemicals | 5. | Harvesting. The grapes are hand-picked, placed in carts, and transported to the crushers. | Number of cartfuls or labor hours | 6. | Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines which remove stems and gently crush the grapes. | Number of cartfuls | 7. | Pressing and filtering. The crushed grapes are transferred to presses which mechanically remove the juices and filter out bulk and impurities. | Gallons of juice | 8. |