Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturingoverhead was estimated to be $53,165 for the year; direct labor was estimated to total $151,900.(12/31)$ 10,400 $ 14,200$ 22,800 $ 18,000$ 34,800 $ 40,800(1/1)Raw Materials InventoryWork in Process InventoryFinished Goods InventoryThe following transactions have occurred during the year.Raw materials purchases$103,000$ 92,100$148,400$ 1,100$ 16,800$ 24,100$ 19,200$Direct materials usedDirect laborIndirect materials usedIndirect laborFactory equipment depreciationFactory rentFactory utilitiesOther factory costs7,700$6,700(a) Calculate the predetermined overhead rate.Predetermined Overhead Rate%(b) Calculate cost of goods manufactured.Cost of Goods Manufactured(c) Calculate the over- or underapplied overhead. (Input all amounts as positive values.)Overhead

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Description: Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturingoverhead was estimated to be $53,165 for the year; direct labor was estimated to total $151,900.(12/31)$ 10,400 $ 14

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Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $53,165 for the year; direct labor was estimated to total $151,900. (12/31) $ 10,400 $14,200 $ 22,800 $ 18,000 $ 34,800 $ 40,800 (1/1) Raw Materials Inventory Work in Process Inventory Finished Goods Inventory The following transactions have occurred during the year. Raw materials purchases $103,000 $ 92,100 $148,400 $ 7,100 $ 16,800 $ 24,100 $ 19,200 $ 7,700 $ Direct materials used Direct labor Indirect materials used Indirect labor Factory equipment depreciation Factory rent Factory utilities Other factory costs 6,700 (a) Calculate the predetermined overhead rate. Predetermined Overhead Rate (b) Calculate cost of goods manufactured. Cost of Goods Manufactured (c) Calculate the over- or underapplied overhead. (Input all amounts as positive values.) Overhead

Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $53,165 for the year; direct labor was estimated to total $151,900. (12/31) $ 10,400 $14,200 $ 22,800 $ 18,000 $ 34,800 $ 40,800 (1/1) Raw Materials Inventory Work in Process Inventory Finished Goods Inventory The following transactions have occurred during the year. Raw materials purchases $103,000 $ 92,100 $148,400 $ 7,100 $ 16,800 $ 24,100 $ 19,200 $ 7,700 $ Direct materials used Direct labor Indirect materials used Indirect labor Factory equipment depreciation Factory rent Factory utilities Other factory costs 6,700 (a) Calculate the predetermined overhead rate. Predetermined Overhead Rate (b) Calculate cost of goods manufactured. Cost of Goods Manufactured (c) Calculate the over- or underapplied overhead. (Input all amounts as positive values.) Overhead

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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…
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,390. Estimated direct labor cost was $460,020 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,870 hours) $ 46,003 Indirect costs Indirect labor 2,450 Indirect materials 3,330 Factory rent 3,290 Factory supervision 4,720 Factory depreciation 5,680 Factory janitorial work 1,130 Factory insurance 1,880 General and administrative salaries 4,110 Selling expenses 5,440 Required:1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $210,000. Raw materials used in production, $188,000 ($150,400 direct materials and $37,600 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $20,000. Depreciation recorded on factory equipment, $105,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $8 per machine-hour. A total of 76,200 machine-hours were used in October. Jobs costing $511,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Jobs that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 40% above cost. Required: 1. Prepare journal entries to record the transactions given above. 2. Prepare…
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). c. Accrued direct labor cost of $49,000 and indirect labor cost of $22,000. d. Depreciation recorded on factory equipment, $106,000. e. Other manufacturing overhead costs accrued during October, $130,000. f. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,000 machine-hours were used in October. g. Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h. Jobs that had cost $447,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost. Required: 1. Prepare journal entries to record the transactions given…
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…
The Contreras Corporation uses a job-order costing system. The following activities took place during the month of May: a. Raw materials purchased b. Raw materials (all direct) used in production c. Salaries and wages costs: Direct labor cost Indirect labor cost Sales salaries d. Factory utility costs e. Depreciation on factory equipment f. Advertising expense g. Manufacturing overhead is applied at the predetermined rate of 150% of direct labor cost. h. Cost of Goods Manufactured for the month i. Cost of Goods Sold for the month $ 40,000 $ 35,000 $ 60,000 $ 30,000 $ 32,000 $ 15,000 $ 50,000 $ 75,000 $180,000 $150,000 Required: Prepare journal entries to record the information given above.
Jensen Fences uses job order costing. Manufacturing overhead is charged to individual jobs through the use of a predetermined overhead rate based on direct labor costs. The following information appears in the company's Work in Process Inventory account for the month of June: Debits to account: Balance, June 1 Direct materials Direct labor $5,000 $18,000 $12,300 Manufacturing overhead (applied to jobs as 125% of direct labor cost) $15,375 Total debits to account Credits to account: Transferred to Finished Goods Inventory account $50,675 $44,000 $6,675 Balance, June 30 Instructions a. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30. b. Prepare general journal entries to summarize: 1. The manufacturing costs (direct materials, direct labor, and overhead) charged to production during June. 2. The transfer of…
[The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows: Raw materials Work in process Finished goods The company applies overhead cost to jobs using direct labor-hours. For this year, the company's predetermined overhead rate of $12.50 per direct labor-hour was based on a cost formula that estimated $500,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded this year: $ 84,500 $ 35,000 $ 44,100 a. Raw materials were purchased on account, $614,000. b. Raw materials used in production, $567,600. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $450,000; indirect labor, $150,000; selling and administrative salaries, $290,000. d. Incurred various selling and administrative expenses…
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The TLX-26383 company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $ 90,000 of manufacturing overhead and an estimated allocation base of $60,000 in direct labor cost. The company has provided the following data: Beginning Ending $ 11,000 Raw Materials Inventory (all direct) Work in Process Inventory $ 28,000 $41,000 $ 35,000 Finished Goods Inventory $ 73,000 $ 64,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) Direct labor cost Manufacturing overhead cost $130,000 $120,000 $110,000 Suppose the company closes out any under- or over-applied overhead cost to Cost of Goods Sold. How much was the company's adjusted Cost of Goods Sold? Multiple Choice О $ 453,000 О $462,000 ○ $447,000 О $ 392,000 $532,000
Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Debit Factory Wages Payable Debit Credit Credit 46,900 Work in Process Inventory Debit Credit 26,150 9,900 26,150 87,650 104,584 Required 1 172,220 1. Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) 2. Compute the amount that overhead is overapplied or underapplied. Required 2 127,900 Complete this question by entering your answers in the tabs below. Finished Goods Inventory Credit Debit 172,220 155,190 Required 1 Required 2 87,650 42, 150 Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied…
Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: manufacturing overhead cost : 200,000 direct material cost: 160,000 Raw materials purchased: $86,000.Raw materials requisitioned for use in production (all direct materials): $98,000.What is the journal entry for"Manufacturing overhead cost was applied to jobs as per company policy."