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Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations. the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000

Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations. the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000

FINANCIAL ACCOUNTING
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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Systems Design: Job-Order Costing 205 Manufacturing overhead allocated Work-in-process Finished goods Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead allocated d. Manufacturing overhead allocated Work-in-process Finished goods Cost of goods sold Manufacturing overhead control P100,000 20,000 a. 40,000 P160,000 b. P100,000 P 625 1,250 10,625 100,000 c. P112,500 P 625 1,250 10,625 100,000 P100,000 625 1,250 10,625 P112,500 E Problems Problem 1 The Mayhem Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year: a. Raw materials purchased on account, P210,000. Kaw materials issued to production, P190,000 (P178,000 direct materials and P12.000 indi
Transcribed Image Text:Systems Design: Job-Order Costing 205 Manufacturing overhead allocated Work-in-process Finished goods Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead allocated d. Manufacturing overhead allocated Work-in-process Finished goods Cost of goods sold Manufacturing overhead control P100,000 20,000 a. 40,000 P160,000 b. P100,000 P 625 1,250 10,625 100,000 c. P112,500 P 625 1,250 10,625 100,000 P100,000 625 1,250 10,625 P112,500 E Problems Problem 1 The Mayhem Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year: a. Raw materials purchased on account, P210,000. Kaw materials issued to production, P190,000 (P178,000 direct materials and P12.000 indi
20. Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500), Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to write off the difference between allocated and actual overhead directly to cost of goods sold? Manufacturing overhead allocated Cost of goods sold Manufacturing overhead control P100,000 P12,500 a. P112,500 Manufacturing overhead control Cost of goods sold Manufacturing overhead allocated Manufacturing overhead allocated Cost of goods sold Manufacturing óverhead control Manufacturing overhead allocated Work-in-process Manufacturing overhead control P100,000 12,500 b. P112,500 P100,000 P340,000 с. P440,000 P100,000 12,500 d. P112,500 Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). 21. Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to prorate the write off of the difference between allocated and actual overhead using the ending balance approach?
Transcribed Image Text:20. Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500), Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to write off the difference between allocated and actual overhead directly to cost of goods sold? Manufacturing overhead allocated Cost of goods sold Manufacturing overhead control P100,000 P12,500 a. P112,500 Manufacturing overhead control Cost of goods sold Manufacturing overhead allocated Manufacturing overhead allocated Cost of goods sold Manufacturing óverhead control Manufacturing overhead allocated Work-in-process Manufacturing overhead control P100,000 12,500 b. P112,500 P100,000 P340,000 с. P440,000 P100,000 12,500 d. P112,500 Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). 21. Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to prorate the write off of the difference between allocated and actual overhead using the ending balance approach?
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