Homework Help is Here – Start Your Trial Now!
Business
Accounting
Air Star, Inc., which uses a job-costing system, began business on January 1, 2019 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 2019: Budgeted direct labor and manufacturing overhead were anticipated to be 200,000 and 250,000, respectively Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job # Direct Materials Direct Labor 1 145,000.00 35,000.00 2 320,000.00 65,000.00 3 55,000.00 80,000.00 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production Actual manufacturing overhead by year-end totaled 233,000. Rock Star adjusts all under- and overapplied overhead to cost of goods sold. 13. Compute the company's predetermined overhead application rate. 14. Compute Rock Star's ending work-in-process inventory 15. Determine Rock Star's sales revenue

Air Star, Inc., which uses a job-costing system, began business on January 1, 2019 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 2019: Budgeted direct labor and manufacturing overhead were anticipated to be 200,000 and 250,000, respectively Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job # Direct Materials Direct Labor 1 145,000.00 35,000.00 2 320,000.00 65,000.00 3 55,000.00 80,000.00 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production Actual manufacturing overhead by year-end totaled 233,000. Rock Star adjusts all under- and overapplied overhead to cost of goods sold. 13. Compute the company's predetermined overhead application rate. 14. Compute Rock Star's ending work-in-process inventory 15. Determine Rock Star's sales revenue

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please answer 13-15.

Air Star, Inc., which uses a job-costing system, began business on January 1, 2019 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 2019: Budgeted direct labor and manufacturing overhead were anticipated to be 200,000 and 250,000, respectively Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job # Direct Materials Direct Labor 1 145,000.00 35,000.00 2 320,000.00 65,000.00 3 55,000.00 80,000.00 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production Actual manufacturing overhead by year-end totaled 233,000. Rock Star adjusts all under- and overapplied overhead to cost of goods sold. 13. Compute the company's predetermined overhead application rate. 14. Compute Rock Star's ending work-in-process inventory 15. Determine Rock Star's sales revenue 16. Was manufacturing overhead under- or overapplied during 2019? By how much 17. Present the necessary journal entry to handle under- or overapplied manufacturing overhead at year-end
Transcribed Image Text:Air Star, Inc., which uses a job-costing system, began business on January 1, 2019 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 2019: Budgeted direct labor and manufacturing overhead were anticipated to be 200,000 and 250,000, respectively Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job # Direct Materials Direct Labor 1 145,000.00 35,000.00 2 320,000.00 65,000.00 3 55,000.00 80,000.00 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production Actual manufacturing overhead by year-end totaled 233,000. Rock Star adjusts all under- and overapplied overhead to cost of goods sold. 13. Compute the company's predetermined overhead application rate. 14. Compute Rock Star's ending work-in-process inventory 15. Determine Rock Star's sales revenue 16. Was manufacturing overhead under- or overapplied during 2019? By how much 17. Present the necessary journal entry to handle under- or overapplied manufacturing overhead at year-end
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Gains and Losses
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS