Factory Overhead Rates, Entries, and Account BalanceSundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hoursin Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:Factory 1Factory 2Estimated factory overhead cost for fiscalyear beginning March 1$12,900,000$10,200,00Estimated direct labor hours for year250,000Estimated machine hours for year600,000Actual factory overhead costs for March$1,082,500$840,833Actual direct labor hours for March20,416Actual machine hours for March50,833a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places.per machine hourb. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places.$per direct labor hourFeedbackCheck My Workc. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar. Entries for MaterlalsGenX Furnishings manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:Fabric$40,500Polyester filling28,600Lumber62,400Glue6,550The materials purchased during June are summarized from the receiving reports as follows:Fabric$440,000Polyester filling180,000Lumber360,000Glue40,000Materials were requisitioned to individual jobs as follows:PolyesterFabricFillingLumberGlueTotalDob 601$205,000$75,000$120,000$400,000Dob 602110,00036,00088,000234,000Dob 603130,00055,000125,000310,000Factory overhead-indirectmaterials$34,80034,800Total$445,000$166,000$333,000$34,800 $978,800The glue is not a significant cost, so it is treated as indirect materials (factory overhead).a. Journalize the entry to record the purchase of materials in June.Materialsa.Accounts Payableb. Journalize the entry to record the requisition of materials in June. If an amount box does not require an entry, leave it blank.b. Work in ProcessFactory OverheadMaterialsFeedbackCheck My Workb. Increase the work in process for direct materials for the Jobs and factory overhead for the indirect materials.c. Determine the June 30 balances that would be shown in the materials ledger accounts.FabricPolyester FillingLumberGlueBalance, June 3000

Name: Factory Overhead Rates, Entries, and Account BalanceSundance Solar Co
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Description: Factory Overhead Rates, Entries, and Account BalanceSundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hoursin Factory 2. Estimated

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Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $12,900,000 $10,200,00 Estimated direct labor hours for year 250,000 Estimated machine hours for year 600,000 Actual factory overhead costs for March $1,082,500 $840,833 Actual direct labor hours for March 20,416 Actual machine hours for March 50,833 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. per direct labor hour Feedback Check My Work c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar.

Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $12,900,000 $10,200,00 Estimated direct labor hours for year 250,000 Estimated machine hours for year 600,000 Actual factory overhead costs for March $1,082,500 $840,833 Actual direct labor hours for March 20,416 Actual machine hours for March 50,833 a. Determine the factory overhead rate for Factory 1. Round the answer to two decimal places. per machine hour b. Determine the factory overhead rate for Factory 2. Round the answer to two decimal places. per direct labor hour Feedback Check My Work c. Journalize the entries to apply factory overhead to production in each factory for March. When required, round your answers to the nearest dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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