Faughn Corporation has provided the following data concerning manufacturing overhead for July:Actual manufacturing overhead incurredManufacturing overhead applied to Work in Process$ 69,000$ 79,000The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closesout its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true? Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the ManufacturingOverhead account is $253,000Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the ManufacturingOverhead account is $253,000Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the ManufacturingOverhead account is $233,000Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the ManufacturingOverhead account is $233,000

COGS refers to the direct costs of producing the things that a company sells. The cost of the…

Answered: Faughn Corporation has provided the…

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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Crane's Manufacturing calculated its predetermined overhead rate to be 180% of direct materials costs. For the month of July, the company incurred $118000 of raw material costs, of which $89000 were direct materials, and $29000 were indirect materials. Actual overhead incurred was $174000. What would be the debit entry to the Work in Process Inventory account for July with respect to manufacturing overhead? $174000 $160200 $212400 $zero, the account should be credited
Tuscon Corporation The records of Tuscon Corporation revealed the following data for the current year. Work in Process $73,150 Finished Goods 115,000 Cost of Goods Sold 133,650 Direct Labor 111,600 Direct Material 84,200 Refer to Tuscon Corporation. Assume that Tuscon has underapplied overhead of $37,200 and that this amount is material. What journal entry is needed to close the overhead account? (Round decimals to nearest whole percent.) Select one: a. Debit Overhead $37,200 and credit Work in Process $8,456; Finished Goods $13,294; Cost of Goods Sold $15,450 b. Debit Work in Process $8,456; Finished Goods $13,294; Cost of Goods Sold $15,450 and credit Overhead $37,200 c. Debit Cost of Goods Sold $37,200 and credit Overhead $37,200 d. Debit Work in Process $37,200 and credit Overhead $37,200
Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 89,000 and estimated factory overhead is $445,000. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory Work-in-process inventory (All Job A) Finished goods inventory Material purchases Direct materials requisitioned Job A Job B Direct labor hours Job A Job B Labor costs incurred Direct labor ($7.00/hour) Indirect labor Supervisory salaries Rental costs Factory Administrative offices Total equipment depreciation costs Factory Administrative offices Indirect materials used $ 8,000 32,200 69,500 111,500 70,000 36,000 4,700 4,000 60,900 14,000 6,500 7,500 2,300 8,250 2,350 12,500 Required: 1. What is the total cost of Job A? 2. What is the…
4. Selwyn's Service applied overhead on the basis of direct labor costs during the current year. Overhead applied as $16,500. Actual overhead incurred was $17,200. Prepare a journal entry to remove this difference from the factory overhead account assuming that it is not material.
All information included
A
Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the same period, the Manufacturing Overhead applied to Work in Process was $89,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: A. debit to Work in Process of $89,000. B. credit to Manufacturing Overhead of $87,000. C. debit to Manufacturing Overhead of $87,000. D. credit to Work in Process of $89,000.
The Work in Process inventory account of a manufacturing Corporation shows a balance of Rs.30,000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of Rs. 9,000 and Rs. 5000 for materials, and charges of Rs. 6,000 and Rs. 4,000 for direct labor. From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs: Calculate Predetermined over rate?
During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $34,200; indirect labor, $95,100; utilities cost, $19,600; and factory depreciation, $51,300. Journalize the entry on May 30 to record the factory overhead incurred during May. Refer to the Chart of Accounts for exact wording of account titles.
The following selected data were taken from the accounting records of Metcalf Manufacturing. The company uses direct-labor hours as its cost driver for overhead costs. Month January February March April May June Direct-Labor Hours 37,000 39,000 52,000 40,000 44,000 42,000 March's costs consisted of machine supplies ($296,400), depreciation ($32,500), and plant maintenance ($570,100). These costs exhibit the following respective behavior: variable, fixed, and semivariable. Manufacturing Overhead $701,000 740,000 899,000 754, 250 805,500 802,500 The manufacturing overhead figures presented in the preceding table do not include Metcalf's supervisory labor cost, which is step- fixed in nature. For volume levels of less than 15,000 hours, supervisory labor amounts to $77,500. The cost is $155,000 from 15,000- 29,999 hours and $232,500 when activity reaches 30,000 hours or more. Required: 4. 1. Determine the machine supplies cost and depreciation for January. 2. Using the high-low method,…
ABC Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours. The following information relates to ABC Corporation for last year: Estimated Actual Direct labor-hours 25,000 24,800 Manufacturing overhead cost 300,000 287,120 What was ABC underapplied or overapplied overhead for last year?
During March, Pendergraph Corporation incurred $60,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $62,000 The journal entry to record the application of Manufacturing Overhead to Work in Process would include a Multiple Choice credit to Manufacturing Overhead of $62,000 debit to Work in Procedor $60,000 debit to Manufacturing Ovemead or $62.000

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