Adams Company and Baird Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Adams Company $ 208,608 29,000 $ 20,500 Baird Company $ 298,500 30,000 12,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for e- company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below.
Adams Company and Baird Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Adams Company $ 208,608 29,000 $ 20,500 Baird Company $ 298,500 30,000 12,000 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for e- company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
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Question
![Adams Company and Baird Company both apply overhead to the Work in Process Inventory account using direct labor hours. The
following information is available for both companies for the year.
Adams
Company
$ 208,600
29,000
$ 20,500
Baird
Company
$ 298,500
30,000
12,000
Actual manufacturing overhead
Actual direct labor hours
Underapplied overhead
Overapplied overhead
Required
a. Compute the predetermined overhead rate for each company.
b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for eac
company, assuming the amounts are immaterial.
Complete this question by entering your answers in the tabs below.
Predetermined overhead rate
Required A Required B
Compute the predetermined overhead rate for each company.
Note: Round your answers to 2 decimal places.
Per Direct Labor Hour
Adams Company Baird Company
Required B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e34cc5e-e74f-42f4-a792-f5deb0f6ebb5%2Ffa5d5899-4315-47b9-b428-6c737110d9a6%2Fj8t76m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Adams Company and Baird Company both apply overhead to the Work in Process Inventory account using direct labor hours. The
following information is available for both companies for the year.
Adams
Company
$ 208,600
29,000
$ 20,500
Baird
Company
$ 298,500
30,000
12,000
Actual manufacturing overhead
Actual direct labor hours
Underapplied overhead
Overapplied overhead
Required
a. Compute the predetermined overhead rate for each company.
b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for eac
company, assuming the amounts are immaterial.
Complete this question by entering your answers in the tabs below.
Predetermined overhead rate
Required A Required B
Compute the predetermined overhead rate for each company.
Note: Round your answers to 2 decimal places.
Per Direct Labor Hour
Adams Company Baird Company
Required B >
![a. Compute the predetermined overhead rate for each company.
b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each
company, assuming the amounts are immaterial.
Complete this question by entering your answers in the tabs below.
Required A Required
Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the
amounts are immaterial.
Adjusting Entry for Adams Company
Debit
Manufacturing Overhead
Adjusting Entry for Baird Company
Debit
Manufacturing Overhead
Credit
Credit
< Required A
Debit
Debit
Cost of Goods Sold
Cost of Goods Sold
Required>
Credit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e34cc5e-e74f-42f4-a792-f5deb0f6ebb5%2Ffa5d5899-4315-47b9-b428-6c737110d9a6%2Fed64vuh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. Compute the predetermined overhead rate for each company.
b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each
company, assuming the amounts are immaterial.
Complete this question by entering your answers in the tabs below.
Required A Required
Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the
amounts are immaterial.
Adjusting Entry for Adams Company
Debit
Manufacturing Overhead
Adjusting Entry for Baird Company
Debit
Manufacturing Overhead
Credit
Credit
< Required A
Debit
Debit
Cost of Goods Sold
Cost of Goods Sold
Required>
Credit
Credit
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