SavedmeworkAt the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overheadcosts for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows.Jobs completed and soldJobs in finished goods inventoryJobs in work in process inventory$410,00077,00053,000Total actual direct materials cost$540,0001. Determine the predetermined overhead rate.2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Req 4Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.Factory Overhead1,142,500Actual overheadApplied overhead1,142,500< Req 1Req 4 > ng...SavedomeworkAt the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overheadcosts for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows.Jobs completed and soldJobs in finished goods inventoryJobs in work in process inventory$410,00077,00053,000Total actual direct materials cost$540,0001. Determine the predetermined overhead rate.2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate anddetermine whether overhead is overapplied or underapplied.4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Req 4Determine the predetermined overhead rate.Overhead RateChoose Numerator:1Choose Denominator:=Overhead RateEstimated overhead costs/ Estimated direct material costs=Overhead rate500,000 =210%< Req 11,050,000 1 $Req 2 and 3>

Name: SavedmeworkAt the beginning of the year, Custom Mfg. established its
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Description: SavedmeworkAt the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that a

Manufacturing overhead is the cost incurred on the production of the goods.

Business

Accounting

At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overhead costs for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $410,000 77,000 53,000 Total actual direct materials cost $540,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate. Choose Numerator: = Overhead Rate Estimated overhead costs = Overhead rate $ 500,000 = 210% Overhead Rate 1 Choose Denominator: / Estimated direct material costs 1,050,000 1 $ < Req 1 Req 2 and 3>

At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $1,050,000, and direct materials costs, $500,000. At year-end, the company's records show that actual overhead costs for the year are $1,142,500. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $410,000 77,000 53,000 Total actual direct materials cost $540,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Determine the predetermined overhead rate. Choose Numerator: = Overhead Rate Estimated overhead costs = Overhead rate $ 500,000 = 210% Overhead Rate 1 Choose Denominator: / Estimated direct material costs 1,050,000 1 $ < Req 1 Req 2 and 3>

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 59,500 Work in process $ 37,600 Finished goods $ 61,800 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $14.25 per direct labor-hour was based on a cost formula that estimated $570,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Raw materials were purchased on account, $634,000. Raw materials use in production, $598,400. All of of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $520,000; indirect labor, $150,000; selling and administrative salaries, $337,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel…
At the beginning of the year, Custom Mfg. established Its predetermined overhead rate by using the following cost predictions: overhead costs, $600,000, and direct materlals costs, $200,000. At year-end, the company's records show that actual overhead costs for the year are $1,499,100. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360, 000 82, 000 55,000 $497,000 Total actual direct materials cost 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs Incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplled. 4. Prepare the adjusting entry to allocate any over- or underapplled overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Req 4 Determine the predetermined overhead rate. Overhead Rate…
Prettiest Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance Ending Balance 22,000 Raw materials . P14,000 Work in process . 27,000 Finished goods . 62,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur P231,000 in manufacturing overhead cost. The following transactions were recorded for the year: 9.000 77,000 • Raw materials were purchased, P315,000. • Raw materials were requisitioned for used in production,P307,000 (P281,000 direct and P26,000 indirect). • The following employee costs were incurred: direct labor,P377,000; indirect labor,96,000; and administrative salaries, P172,000.Selling costs, P147,000. • Factory utility costs, P10,000. • Depreciation for the year was P127,000 of which P120,000 is related to factory…
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 59,500 Work in process $ 37,600 Finished goods $ 61,800 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $14.25 per direct labor-hour was based on a cost formula that estimated $570,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Raw materials were purchased on account, $634,000. Raw materials use in production, $598,400. All of of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $520,000; indirect labor, $150,000; selling and administrative salaries, $337,000. Incurred various selling and administrative expenses (e.g., advertising, sales travel…
The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $2,340,000 and total direct labor costs would be $1,800,000. During May, the actual direct labor cost totaled $145,000 and factory overhead cost incurred totaled $192,100. Question Content Area a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. fill in the blank 1772e2fb3039fb1_1 % Question Content Area b. Journalize the entry to apply factory overhead to production for May. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area c. What is the May 31 balance of the account Factory Overhead—Blending Department? Amount: $fill in the blank 1ea1070e903a021_1 Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory…
A manufacturer uses job-order costing. On January 1, the company's inventory balances were as follow Raw materials Work in process Finished goods $50,500 $25,000 $38,100 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predetermined overhead rate was based on a cost formula that estimated $470,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, $592,000. b. Raw materials used in production, $557,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $442,000; indirect labor, $150,000; selling and administrative salaries, $295,000. d. Incurred various selling and administrative expenses (e.g, advertising, sales travel costs, and finished goods warehousing), $381,000 e. Incurred various additional…
A company uses a job costing system and applies overhead to jobs using a predetermined overhead rate based on direct labor-hours. The company had the following inventories at the beginning and end of March: March 1 Direct Materials $30,000 Work in Process $12,000 Finished Goods $54,000 The following additional data pertain to operations during March: Direct materials purchased Direct labor cost Direct labor rate Overhead rate March 31 $36,000 $18,000 $72,000 Choose... $ 84,000 $ 60,000 $7.5 per direct labor hour $10 per direct labor hour The Cost of Goods Manufactured for March was:
Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $257,070 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 11,600 $ $ 16,900 1,800 hours Job 102 $ 8,700 $ 6,200 2,000 hours Job 103 $ 5,900 $ 4,500 1,100 hours Total $ 26,200 $ 27,600 4,900 hours Job 101 was completed and sold for $50,800. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,690. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and…
Ali Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department X and machine hours in Department Z. In establishing the predetermined overhead rates for 2020, the following estimates were made for the year. Department X Z Manufacturing overhead $78000 $75000 Direct labor costs $60000 $60000 Direct labor hours 5000 4000 Machine hours 10000 15000 During March, the job cost sheets showed the following costs and production data. Department X Z Direct materials used $9200 $6400 Direct labor costs $4800 $5000 Manufacturing overhead incurred $6600 $6210 Direct labor hours 400 420 Machine hours 800 1260 Required: Compute the predetermined overhead rate for…
2. Len, Inc., which uses a job-costing system, began business on January 1, 20XX and appliesmanufacturing overhead on the basis of direct-labor cost. The following information relatesto 20XX:• Budgeted direct labor and manufacturing overhead were anticipated to be P200,000 andP250,000, respectively.• Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct materialand direct labor: Job No. Direct Materials Direct Labor 1 P145,000 P35,000 2 320,000 65,000 3 55,000 80,000 • Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% ofcost. Job no. 3 remained in production.• Actual…
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Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 119,000 and estimated factory overhead was $785,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 9,500 Work-in-process (All Job X) 37,900 Finished goods 80,900 Materials purchases $ 130,000 Direct materials requisitioned: Job X $ 55,000 Job Y 40,500 Direct labor hours: Job X 5,500 Job Y 5,000 Labor costs incurred: Direct labor ($6.50 per hour) $ 68,250 Indirect labor 17,000 Factory supervisory salaries 7,700 Rental costs: Factory $ 9,000 Administrative offices 2,700 Total equipment depreciation costs:…