and media purchases (air time and ad space). Overhead isallocated to each project as a percentage of mediapurchases. The predetermined overhead rate is 45% ofmedia purchases.On August 1, the four advertising projects had the followingaccumulated costs:Vault BankTake Off AirlinesSleepy Tired HotelsTastee BeveragesTotalDuring August, The Fly Company incurred the followingdirect labor and media purchase costs related to preparingadvertising for each of the four accounts:Vault BankTake Off AirlinesSleepy Tired HotelsTastee BeveragesTotala.August 1 Balances$81,40024,40057,00035,000$197,800At the end of August, both the Vault Bank and Take OffAirlines campaigns were completed. The costs of completedcampaigns are debited to the cost of services account.b.Direct Labor$55,30024,700108,800123,800$312,600a. Journalize the summary entry to record the direct laborcosts for the month. If an amount box does not require anentry, leave it blank.Media PurchasesC.$206,100181,400132,50099,000$619,000b. Journalize the summary entry to record the mediapurchases for the month. If an amount box does notrequire an entry, leave it blank.d.c. Journalize the summary entry to record the overheadapplied for the month. If an amount box does not requirean entry, leave it blank.d. Journalize the summary entry to record the completionof Vault Bank and Take Off Airlines for the month. If anamount box does not require an entry, leave it blank. and media purchases (air time and ad space). Overhead isallocated to each project as a percentage of mediapurchases. The predetermined overhead rate is 45% ofmedia purchases.On August 1, the four advertising projects had the followingaccumulated costs:Vault BankTake Off AirlinesSleepy Tired HotelsTastee BeveragesTotalDuring August, The Fly Company incurred the followingdirect labor and media purchase costs related to preparingadvertising for each of the four accounts:Vault BankTake Off AirlinesSleepy Tired HotelsTastee BeveragesTotala.b.purreqb. (At the end of August, both the Vault Bank and Take OffAirlines campaigns were completed. The costs of completedcampaigns are debited to the cost of services account.C.August 1 Balances$81,40024,40057,00035,000$197,800a. Journalize the summary entry to record the direct laborcosts for the month. If an amount box does not require anentry, leave it blank.appanic. Cd.of Vamid. (Direct Labor$55,30024,700108,800123,800$312,600Media PurchasesCashAccounts PayableAgency OverheadCost of Services$206,100181,400132,50099,000$619,000Salaries PayableWork in Process

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Description: and media purchases (air time and ad space). Overhead isallocated to each project as a percentage of mediapurchases. The predetermined overhead rate is 45% ofmedia purchases.On August 1, the four advertising projects had the followingaccumulated cos

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and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 45% of media purchases. On August 1, the four advertising projects had the following accumulated costs: Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total August 1 Balances $81,400 24,400 57,000 35,000 $197,800 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor $55,300 24,700 108,800 123,800 $312,600 Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total Media Purchases $206,100 181,400 132,500 99,000 $619,000 At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. a. Journalize the summary entry to record the direct labor costs for the month. If an amount box does not require an entry, leave it blank.

and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 45% of media purchases. On August 1, the four advertising projects had the following accumulated costs: Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total August 1 Balances $81,400 24,400 57,000 35,000 $197,800 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor $55,300 24,700 108,800 123,800 $312,600 Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total Media Purchases $206,100 181,400 132,500 99,000 $619,000 At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. a. Journalize the summary entry to record the direct labor costs for the month. If an amount box does not require an entry, leave it blank.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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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?
Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.
When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
During August, Skyler Company worked on three jobs. Data relating to these three jobs follow: Overhead is assigned on the basis of direct labor hours at a rate of 2.30 per direct labor hour. During August, Jobs 39 and 40 were completed and transferred to Finished Goods Inventory. Job 40 was sold by the end of the month. Job 41 was the only unfinished job at the end of the month. Required: 1. Calculate the per-unit cost of Jobs 39 and 40. (Round unit costs to nearest cent.) 2. Compute the ending balance in the work-in-process inventory account. 3. Prepare the journal entries reflecting the completion of Jobs 39 and 40 and the sale of Job 40. The selling price is 140 percent of cost.
Dublin Brewing Co. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during October: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 13,000 units finished and transferred to stockroom Work in process, end of period, 2,000 units one-half completed Required: Prepare a cost of production summary for October.
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: If the fixed manufacturing costs were 450,000 and the fixed selling and administrative expenses were 165,000, prepare an income statement according to the variable costing concept.
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
Job order cost accounting for a service company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 65% of media purchases. On August 1, the four advertising projects had the following accumulated costs: During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. Journalize the summary entry to record each of the following for the month: A. Direct labor costs B. Media purchases C. Overhead applied D. Completion of Vault Bank and Take Off Airlines campaigns
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.
During October, McCourt Associates incurred total production costs of 60,000 for copyediting manuscripts and had the following equivalent units schedule: Required: 1. Calculate the cost of copyediting one manuscript for October. 2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation. 3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of 225? What is the discrepancy between the costs assigned and the costs to account for? What could have caused an incorrect unit cost?