A-1 Altima, Inc. finished Job A40 on the last working day of the year. It utilized $300 of direct materials and $2,650 of direct labor. Altima uses a predetermined overhead allocation ratebased on direct labor costs, which has been fixed at 40%. The entry to record the completion of the job should involve aO A. debit to Finished Goods Inventory $4,010 and a credit to Work-in - Process Inventory $4,010OB. debit to Finished Goods Inventory $4,010 and a credit to Materials Inventory $4,010O C. debit to Work-in - Process Inventory $4,010 and a credit to Finished Goods Inventory $4,010O D. debit to Cost of Goods Sold $4,010 and a credit to Finished Goods Inventory $4,010

Name: A-1 Altima, Inc. finished Job A40 on the last working day of the year.
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Description: A-1 Altima, Inc. finished Job A40 on the last working day of the year. It utilized $300 of direct materials and $2,650 of direct labor. Altima uses a predetermined overhead allocation ratebased on direct labor costs, which has been fixed at 40%. The

The formula used to calculate the cost of goods completed is :Cost of Goods completed = Direct…

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Altima, Inc. finished Job A40 on the last working day of the year. It utilized $300 of direct materials and $2,650 of direct labor. Altima uses a predetermined overhead allocation rate based on direct labor costs, which has been fixed at 40%. The entry to record the completion of the job should involve a H OA. debit to Finished Goods Inventory $4,010 and a credit to Work-in-Process Inventory $4,010 O B. debit to Finished Goods Inventory $4,010 and a credit to Materials Inventory $4,010 OC. debit to Work - in - Process Inventory $4,010 and a credit to Finished Goods Inventory $4,010 O D. debit to Cost of Goods Sold $4,010 and a credit to Finished Goods Inventory $4,010

Altima, Inc. finished Job A40 on the last working day of the year. It utilized $300 of direct materials and $2,650 of direct labor. Altima uses a predetermined overhead allocation rate based on direct labor costs, which has been fixed at 40%. The entry to record the completion of the job should involve a H OA. debit to Finished Goods Inventory $4,010 and a credit to Work-in-Process Inventory $4,010 O B. debit to Finished Goods Inventory $4,010 and a credit to Materials Inventory $4,010 OC. debit to Work - in - Process Inventory $4,010 and a credit to Finished Goods Inventory $4,010 O D. debit to Cost of Goods Sold $4,010 and a credit to Finished Goods Inventory $4,010

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 4PA: During March, the following costs were charged to the manufacturing department: $14886 for...

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Luna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the plant. Prior to June 1, the predetermined overhead application rate for June was computed from the following data, based on an estimate of 5,000 direct labor hours: The factory has one production department and uses the direct labor hour method to apply factory overhead. Three jobs are started during the month, and postings are made daily to the job cost sheets from the materials requisitions and labor-time records. The following schedule shows the jobs and amounts posted to the job cost sheets: The factory overhead control account was debited during the month for actual factory overhead expenses of 27,000. On June 11, Job 2526 was completed and delivered to the customer using a mark-on percentage of 50% on manufacturing cost. On June 24, Job 2527 was completed and transferred to Finished Goods. On June 30, Job 2528 was still in process. Required: 1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including factory overhead applied when the job was completed or at the end of the month for partially completed jobs. 2. Prepare journal entries as of June 30 for the following: a. Applying factory overhead to production. b. Closing the applied factory overhead account. c. Closing the factory overhead account. d. Transferring the cost of the completed jobs to finished goods. e. Recording the cost of the sale and the sale of Job 2526.
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Required: 1. Calculate the predetermined overhead rate based on direct labor cost. 2. Calculate the ending balance for each job as of August 31. 3. Calculate the ending balance of Work in Process as of August 31. 4. Calculate the cost of goods sold for August. 5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairles sales revenue for August.
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