Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead(LO3-1, LO3-2, LO3-4]The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of thetransactions that affected those accounts during the year.Manufacturing Overhead497,664 (b)82,944|Work in Process6,280 (c)316,00093,000414,72056,000Finished Goods34,000 | (d)774,000136,000(а)414,720Bal.774,000672,000Bal.(c)Bal.Bal.(b)Bal.Cost of Goods Sold(d)672,000||The overhead that had been applied to production during the year is distriputed among Work in Process, Finished Goods, and Cost ofGoods Sold as of the end of the year as follows:Work in Process, endingFinished Goods, endingCost of Goods Sold$ 26,88065,280322,560$ 414,720Overhead applied For example, of the $56,000 ending balance in work in process, $26,880 was overhead that had been applied during the year.Required:1. Identify reasons for entries (a) through (d).2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost ofGoods Sold. Prepare the necessary journal entry.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of GoodsSold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field. Do not round intermediate calculations.)

Over-applied / Under-applied overhead = Total Overhead cost - Actual Overhead cost applied Overhead…

Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, L03-4] The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 497,664 (b) 82,944 Work in Process 6,280 (c) 316,000 93,000 414,720 56,000 Finished Goods 34,000 (d) 774,000 136,000 (a) 414,720 Bal. 774,000 Bal. (c) Bal. 672,000 Bal. (b) Bal. Cost of Goods Sold (p). 672,000|| The overhead that had been applied to production during the year is distriputed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending Finished Goods, ending Cost of Goods Sold $ 26,880 65,280 322,560 $ 414,720 Overhead applied

Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, L03-4] The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 497,664 (b) 82,944 Work in Process 6,280 (c) 316,000 93,000 414,720 56,000 Finished Goods 34,000 (d) 774,000 136,000 (a) 414,720 Bal. 774,000 Bal. (c) Bal. 672,000 Bal. (b) Bal. Cost of Goods Sold (p). 672,000|| The overhead that had been applied to production during the year is distriputed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending Finished Goods, ending Cost of Goods Sold $ 26,880 65,280 322,560 $ 414,720 Overhead applied

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected accounts with amounts omitted are as follows: Work in Process 266,230 Aug. 31 Aug. 1 31 31 31 Balance Direct materials Direct labor Factory overhead Aug. 1-31 Costs incurred X 35,400 Factory Overhead 118,780 Aug. 1 31 Goods finished Balance Applied (30% of direct labor cost) 133,400 13,060 X If the balance of Work in Process on August 31 is $192,710, what was the amount debited to Work in Process for direct materials in August? < O a. $108,920 O b. $494,340 O c. $13,860 O d. $360,940
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Question Content Area Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 23,400 Oct. 31 Finished goods X 31 Direct materials 93,800 31 Direct labor 170,200 31 Factory overhead X Finished Goods Oct. 1 Balance 13,700 31 Goods finished 326,600 If the balance of Work in Process on October 31 is $207,600, what was the amount of factory overhead applied in October? a.$246,800 b.$401,200 c.$93,800 d.$170,200
Acme Company uses a job-order costing system with a single plantwide predetermined overhead rate based on machine- hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Recently, Job T687 was completed with the following characteristics: Number of units in the job Total machine-hours Direct materials Direct labor cost 10 40 $710 $ 1,420 32,500 $ 455,000 $5
Recording Issuing of Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 832 Fiberglass 68 $93,666 833 Plastic 83 64,425 834 Glue Indirect 2,764 835 Wood 89 23,697 836 Aluminium 98 40,753 a. Determine the amount of materials transferred to Work in Process and Factory Overhead for the current month. Materials transferred to Work in Process $fill in the blank 1 Materials transferred to Factory Overhead $fill in the blank 2 b. Illustrate the effect on the accounts and financial statements of the materials transferred in (a). If no account or activity is affected, select "No effect" from the drop-down list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets = Liabilities + Stockholders' Equity + + = + fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11…
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Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 266,720 Aug. 31 Goods finished 135,920 31 Direct materials X 31 Direct labor 35,900 31 Factory overhead X Factory Overhead Aug. 1 – 31 Costs incurred 113,500 Aug. 1 Balance 12,290 31 Applied (30% of direct labor cost) X If the balance of Work in Process on August 31 is $219,290, what was the amount debited to Work in Process for direct materials in August? a.$385,990 b.$521,910 c.$83,330 d.$41,820 The journal entry to record the purchase of $39,313 of raw materials is a. Materials$39,313 Accounts Receivable$39,313 b. Inventory$39,313 Cash$39,313 c. Inventory$39,313 Accounts Receivable$39,313 d. Materials$39,313 Accounts Payable$39,313 All of the following could be considered a direct material except a.fabric b.glue c.steel d.lumber
Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 24,100 Oct. 31 Finished goods X 31 Direct materials 91,500 31 Direct labor 177,600 31 Factory overhead X Finished Goods Oct. 1 Balance 12,700 31 Goods finished 350,900 If the balance of Work in Process on October 31 is $196,800, what was the amount of factory overhead applied in October? a.$91,500 b.$177,600 c.$254,500 d.$398,500
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