Budgeted manufacturing overhead cost $200,000 Budgeted direct manufacturing labor cost $400,000 Actual manufacturing overhead cost Actual direct manufacturing labor cost Account Inventory balances on December 31, 20X7, were as follows: Work in process Finished goods Cost of goods sold $260,000 Ending balance $50.700 $245.050 $549.250 $500,000 Required: Calculate the ending balances in work in process, finished goods, and cost of goods sold if under or overallocated manufacturing overhead is prorated based on ending balances (before proration) in each of the three accounts.

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

Answer in text form with steps and all other workings

Budgeted manufacturing overhead cost $200,000
Budgeted direct manufacturing labor cost $400,000
Actual manufacturing overhead cost
Actual direct manufacturing labor cost
Account
Inventory balances on December 31, 20X7, were as follows:
Work in process
Finished goods
Cost of goods sold
$260,000
Ending balance
$50.700
$245.050
$549.250
$500,000
Required: Calculate the ending balances in work in process, finished goods, and cost of
goods sold if under or overallocated manufacturing overhead is prorated based on ending
balances (before proration) in each of the three accounts.
Transcribed Image Text:Budgeted manufacturing overhead cost $200,000 Budgeted direct manufacturing labor cost $400,000 Actual manufacturing overhead cost Actual direct manufacturing labor cost Account Inventory balances on December 31, 20X7, were as follows: Work in process Finished goods Cost of goods sold $260,000 Ending balance $50.700 $245.050 $549.250 $500,000 Required: Calculate the ending balances in work in process, finished goods, and cost of goods sold if under or overallocated manufacturing overhead is prorated based on ending balances (before proration) in each of the three accounts.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost allocation
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