Coral Artworks Ltd has supplied the following information to its new management accountant for the month of March: Account Beginning Balances Ending Balances Raw Materials $21,000 $36,000 WIP $25,000 $53,600 $64,000 Finished Goods $30,000 1. Overhead is applied on the basis of $6 per direct labor hour (16,000 DL hours incurred). 2. Jobs sold during the period were sold for $500,000. The cost of goods sold during the month was $300,000. 3. Indirect materials worth $6,500 were issued to production during the month. Direct materials were purchased on credit. 4. Regular hourly rate is $10. A total of 7,500 labor hours were worked during normal working hours. Employees also worked an additional 500 hours of overtime during the month. Overtime is paid at a rate of 150% of the normal hourly rate. 5. Sundry manufacturing overhead costs incurred during the month were $75,000. Was overhead under/over applied during March and by how much?

Coral Artworks Ltd has supplied the following information to its new management accountant for the month of March: Account Beginning Balances Ending Balances Raw Materials $21,000 $36,000 WIP $25,000 $53,600 $64,000 Finished Goods $30,000 1. Overhead is applied on the basis of $6 per direct labor hour (16,000 DL hours incurred). 2. Jobs sold during the period were sold for $500,000. The cost of goods sold during the month was $300,000. 3. Indirect materials worth $6,500 were issued to production during the month. Direct materials were purchased on credit. 4. Regular hourly rate is $10. A total of 7,500 labor hours were worked during normal working hours. Employees also worked an additional 500 hours of overtime during the month. Overtime is paid at a rate of 150% of the normal hourly rate. 5. Sundry manufacturing overhead costs incurred during the month were $75,000. Was overhead under/over applied during March and by how much?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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A company has the following transactions during the week. Purchase of $1,000 raw materials inventory Assignment of $500 of raw materials inventory to Job 5 Payroll for 20 hours with $1,000 assigned to Job 5 Factory utility bills of $750 Overhead applied at the rate of $10 per hour What is the cost assigned to Job 5 at the end of the week?
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.
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.
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Write the journal entry of numbers 9 to 12
Provide the journal entry of each transactions.
3
XYZ Company has the following balances for the current month: Direct materials used OMR 24,000 Direct labor OMR 36,800 Sales salaries OMR 19,200 Indirect labor OMR 4,800 Production manager's salary OMR 9,600 Marketing costs OMR 14,400 Factory lease OMR 6,400 What is total manufacturing cost? a. OMR 81,600 b. OMR 86,400 C. OMR 89,600 d. OMR 96,000 e. None of the given answer.
Hughes Payroll and Clerical Services (HPCS) provides payroll, bookkeeping, and other services to small businesses. HPCS financial records show the following costs for last quarter (QTR 1): Supplies Employee costs Total administration $ 14,000 1,015,000 455,000 HPCS recorded 4,375 billable hours in QTR 1 and fixed administrative cost was $245,000. Assuming no change in billable hours in the next quarter (QTR 2), supplies costs are expected to increase by 5 percent. Direct labor costs are expected to increase by 12 percent. Variable administration per billable hour is expected to remain the same, but fixed administration cost is expected to decrease by 7 percent. Required: a. HPCS expects to bill 5,425 hours next quarter. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for next quarter (QTR 2)? b. Determine the total costs per billable hour for QTR 1 and QTR 2. Complete this question by entering your answers in the tabs below. Required A…
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to increase or decase and by how much? check_circleAnswer Step 1 Underapplied overhead: When there is a debit balance in the manufacturing overhead account during the month end, it indicates that overheads applied to jobs are less than the actual overhead cost incurred by the business. Therefore, the debit balance in the manufacturing overhead account is referred to as underapplied overhead. Overapplied overhead: When there is a credit balance in the manufacturing overhead account during the month end, indicates that overheads applied to jobs is more than the actual overhead cost incurred by the business. Therefore, the credit balance in the manufacturing overhead account is referred to as overapplied overhead. Step 2 Calculate the overapplied or underapplied overhead. help_outlinefullscreen Step 3…
Brooks Company has the following balances for the current month: Direct materials used $24,000 Direct labor $40,000 Sales salaries $19,200 Indirect labor $4,800 Production manager's salary $9,600 Marketing costs $14,400 Factory lease $6,000 What is Brooks' total manufacturing overhead?
Gensource Company provided the following information from its accounting records for 2021: Estimated production 60,000 labor hours Actual production 56,000 labor hours Estimated overhead $1,800,000 Actual overhead $1,740,000 How much is the predetermined overhead rate if the Company bases it on direct labor hours? Select one: O a. $29.00 per hour b. $32.14 per hour c. $30.00 per hour d. $31.07 per hour