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

Name: Curtis Inc. uses a job order costing system. Manufacturing overhead i
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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

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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[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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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…
Almeda Products, Inc. uses a job order costing system. Inventory balances on April 1 were raw materials, $32,000; work in process, $20,000; and finished goods, $48.000 Additional information are as follows: Raw materials purchased $170,000. Raw materials issued from storeroom to production $180,000; 80% direct and 20% indirect. Direct labor $200,000; indirect labor $82,000; and selling and administrative salaries $90,000. Utility costs incurred in the factory, $65,000. Advertising costs $100,000 Insurance Expense $20,000; 90% factory related and 10% selling and administrative related. Depreciation Expense $180,000; 85% for factory assets and 15% for selling and administrative assets Predetermined overhead rate is 175% of direct labor cost. Cost of goods manufactured was $700,000 Sales for the year, $1,000,000; cost of the goods sold, $720,000. Required: 1. Compute for the under- or over-applied overhead for the year. Is it under-applied or over-applied? 2. Compute for the ending…
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
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Under Lamar Company's job costing system, manufacturing overhead is applied to Work-in-Process Inventory using a predetermined overhead rate. During June, Lamar's transactions included the following: Direct materials issued to production $ 91,700 Indirect materials issued to production 9,700 Manufacturing overhead cost incurred 126,700 Manufacturing overhead cost applied 114,700 Direct labor cost incurred 108,700 Lamar Company had no beginning or ending inventories. What was the cost of goods manufactured for June? (CMA adapted)
Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Beginning balance in Work in Process (1) Raw materials purchased on account (2) Direct materials requisitioned for use in production (3) Indirect materials requisitioned for use in production (4) Direct labor wages incurred (5) Indirect labor wages incurred (6) Depreciation recorded on factory equipment (7) Additional manufacturing overhead costs incurred (8) Manufacturing overhead costs applied to jobs (9) Cost of jobs completed and transferred from Work in Process to Finished Goods The ending balance in the Work in Process account is closest to: $ 36,000 $207,000 $161,000 $ 42,000 $ 87,000 $101,000 $ 42,000 $ 57,000 $219,000 $403,000
How can resolve this problem? 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, $191,000 ($152,800 direct materials and $38,200 indirect materials). Accrued direct labor cost of $49,000 and indirect labor cost of $21,000. 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 $10 per machine-hour. A total of 76,100 machine-hours were used in October. Jobs costing $513,000 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 34% above cost. Required: 1. Prepare journal entries to record the…
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials -Work in process Finished goods Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs 1. Raw materials purchases for cash. 2. Direct materials used. 3. Indirect materials used. View transaction list Beginning of period $ 40,000 9,400 56,000 Journal entry worksheet A Prepare journal entries for the above transactions for the period. B C Transaction 1 Note: Enter debits before credits. End of Period $ 50,000 20,600 34,000 $ 183,000 150,000 11,000 34,500 91,000 Record the raw material purchases for cash. General Journal Debit Credit
k Jenkins Company had the following information for the year: Direct materials used Direct labor incurred (9,100 hours) Actual manufacturing overhead incurred Beginning Work in Process Inventory Ending Work in Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory $ 295,100 249,800 347,600 Multiple Choice 0 0 0 19,500 Jenkins Company used a predetermined overhead rate based on estimated overhead of $391,000 and 8,500 estimated direct labor hours. What was the cost of goods manufactured?