COMPANY Y APPLIES MOH TO JOBS BASED ON MACHINE HOURS USED. MOH COSTS ARE EXPECTED TO TOTAL $350,000 FOR THE YEAR, AND MACHINE USAGE IS ESTIMATED AT 140,000 HOURS. FOR THE YEAR, $360,000 MOH COSTS ARE INCURRED, AND 145,000 MACHINE HOURS ARE USED. CALCULATE THE AMOUNT OF COGS ADJUSTMENT AT YEAR-END.

COMPANY Y APPLIES MOH TO JOBS BASED ON MACHINE HOURS USED. MOH COSTS ARE EXPECTED TO TOTAL $350,000 FOR THE YEAR, AND MACHINE USAGE IS ESTIMATED AT 140,000 HOURS. FOR THE YEAR, $360,000 MOH COSTS ARE INCURRED, AND 145,000 MACHINE HOURS ARE USED. CALCULATE THE AMOUNT OF COGS ADJUSTMENT AT YEAR-END.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

See similar textbooks

Related questions

Q: Delphi Corporation disposed of an asset at the end of the sixth year of its estimated life for…

A: Explanation of Straight-Line Depreciation:Straight-line depreciation is a method that allocates the…

Q: Need help financial accounting

A: To find the required rate of return on Greenfield Corp.'s stock, we use the Capital Asset Pricing…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: To find the company's earnings per share (EPS) using the price-to-earnings (P/E) ratio, use this…

Q: I am searching for the correct answer to this financial accounting problem with proper accounting…

A: Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a financial…

Q: Determine the materials price variance and materials quantity variance.

A: Concept of Standard Price:The standard price is the predetermined or expected cost of a unit of raw…

Q: correct solution this accounting question

A: Step 1: Definition of Labor VariancesLabor Rate Variance (LRV) measures the difference between the…

Q: I need help with this financial accounting question using the proper financial approach.

A: Step 1: Definition of Net IncomeNet income is the final profit figure after deducting all…

Q: Calculate the annual depreciation charge at the end of each year for the first give years of the…

A: Concept of Depreciation:Depreciation is the systematic allocation of the cost of a tangible fixed…

Q: Financial Accounting

A: to calculate the effective tax rate on your share of Delta Systems' corporate earnings:1. Calculate…

Q: If the cost of the beginning work in process inventory is $78,500, cost of goods manufactured is…

A: Concept of Work in Process InventoryWork in Process (WIP) Inventory represents the value of products…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: To calculate Northline Tires' accounts receivable turnover rate for 2023, use the following…

Q: Subject: Financial Accounting

A: Provided Data:Book value of fixed assets = $240Appraised (market) value of fixed assets = $315Book…

Q: what will be the sales growth rate for 2526?

A: To calculate the sales growth rate for 2526, we need to use the Sustainable Growth Rate (SGR)…

Q: chose best answer accounting question

A: Step 1: Definition of Days' Sales in ReceivablesDays' sales in receivables is a measure of how long…

Q: none

A: To calculate operating leverage, find the ratio of contribution margin to profit.First, identify the…

Q: General Accounting

A: Step 1: Define Cost of Goods Sold (COGS)COGS is the direct cost of inventory sold during a period.…

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: To calculate the average cost per scooter including overhead, follow these steps: 1. Direct costs…

Q: calculate the companys debt to equity ratio ?

A: Here's how to calculate the debt-to-equity ratio: Understanding the RatiosDebt Ratio: This ratio…

Q: Gama Co. sold merchandise to Harper Co. on account for $50,000, with terms of 3/10, net 60. The cost…

A: Concept of Merchandise Sales:Merchandise sales represent revenue generated from selling goods to…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: To calculate Pinnacle's Degree of Operating Leverage (DOL):1. Calculate Current Earnings Before…

Q: Accounting answer with right solution

A: Step 1: Definition of Markup (Dollar and Percent)Markup refers to the amount added to the cost price…

Q: Nova Tools Co. produces a single product. The following standard costs apply to variable overhead: •…

A: Step 1: DefinitionsVariable Overhead Rate Variance measures the difference between the actual…

Q: On January 3, 2020, Lennox Corporation acquired equipment for $120,000. The estimated life of the…

A: Concept of Cost of Equipment:This is the initial purchase price of a long-term asset, including all…

Q: Please explain the solution to this general accounting problem using the correct accounting…

A: Use the fundamental principles of production budgeting.Acounting Principles Applied:Matching…

Q: Lawrence Manufacturing is working on Job 882, which requires $11,250 of direct materials, $6,400 of…

A: To compute the total cost of Job 882, we need to sum: Direct MaterialsDirect LaborApplied…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: Step 1: Definition of Labor Efficiency VarianceLabor Efficiency Variance measures the difference…

Q: General accounting questions

A: To calculate operating leverage, we use the formula:Operating Leverage = Contribution Margin /…

Q: John Inc. doubled its amount of assets from the beginning to the end of the year. Liabilities at the…

A: Explanation of Assets:Assets are everything a business owns that has economic value and can be used…

Q: What was the income from operations?

A: To calculate income from operations, you can use the contribution margin income statement format:…

Q: I want answer with all working format

A: Concept of Fixed Costs:Fixed costs are business expenses that remain constant regardless of how much…

Q: need help this question

A: Step 1: Definition of Net IncomeNet income is the profit a company earns after all expenses, taxes,…

Q: I need help with this general accounting question using standard accounting techniques.

A: Step 1: Definition of Fixed CostFixed costs are costs that do not vary with the level of production…

Q: Variable factory overhead:72000, fixed factory overhead:126000

A: Explanation of Direct Materials: Direct materials are the raw materials, components, and parts that…

Q: Solve with explanation and accounting question

A: Step 1: Definition of Inventory Days of Supply (DOS)Inventory Days of Supply (DOS) is a measure of…

Q: I need the correct answer to this general accounting problem using the standard accounting approach.

A: To find the selling price per unit, we need to use the contribution margin (CM) formula and work…

Q: Accounting

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a profitability ratio that…

Q: Please right solution and accounting question

A: Step 1: Definition of Manufacturing OverheadManufacturing Overhead includes all indirect production…

Q: Can you provide the accurate answer to this financial accounting question using correct methods?

A: Provided Data:Variable raw material cost per pair = $28.40Variable labor cost per pair =…

Q: Assume there are 365 days in a month year

A: To calculate the level of accounts receivable, use the formula: Accounts Receivable = DSO × Average…

Q: Zenith Components wants to evaluate its cash conversion cycle. Last year, it made $150,000 in credit…

A: Solution: Step 1: Write the formula for Cash Conversion Cycle (CCC).CCC = Days Inventory Outstanding…

Q: HarrisTech Inc.’s year-end 2023 balance sheet lists current assets of $915,000, fixed assets of…

A: To calculate HarrisTech Inc.'s total stockholders' equity, we use the basic accounting equation:…

Q: What is Averton's 2022 operating income using absorption costing?

A: Under absorption costing, all manufacturing costs—both variable and fixed—are assigned to units of…

Q: What is the net income reported by parker plumbing for the year? accounting question

A: Step 1: Net Income DefinitionNet income, also referred to as "net profit" or "bottom line," is one…

Q: General Accounting

A: Step 1: Define Return on Total Assets (ROA)Return on Total Assets (ROA) is a financial ratio that…

Q: As of June 15, 2022,Marlin Supplies has assets of $243,000 and liabilities of $87,000. How much is…

A: Provided Data:Assets = $243,000Liabilities = $87,000We are solving for: Owner's EquityStep 1: Key…

Q: Direct materials:2454, Direct labor hours:71

A: Explanation of Job Cost Sheet: A job cost sheet is a document used in a job costing system to…

Q: Ans

A: Step 1: Definition of Beginning Cash BalanceThe Beginning Cash Balance for a period is the amount of…

Q: accounting?

A: Step 1: Definition of Corporate Value using Free Cash Flow ApproachThe Corporate Value using the…

Q: answer ? Financial accounting

A: Step 1: Determine the amount to be financedTotal cost of machinery = $600,000Cash paid upfront =…

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: Step 1: Definition of Full Cost of a Product The full cost of a product, also known as the total…

Question

100%

Can you show me the correct approach to solve this genral accounting problem using suitable standards?

COMPANY Y APPLIES MOH TO JOBS BASED ON
MACHINE HOURS USED. MOH COSTS ARE
EXPECTED TO TOTAL $350,000 FOR THE YEAR,
AND MACHINE USAGE IS ESTIMATED AT
140,000 HOURS. FOR THE YEAR, $360,000 MOH
COSTS ARE INCURRED, AND 145,000 MACHINE
HOURS ARE USED.
CALCULATE THE AMOUNT OF COGS
ADJUSTMENT AT YEAR-END.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
A company estimated 50,000 direct labor hours and $450,000 in overhead. The actual overhead was $445,000, and there were 50,500 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?
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.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?