i) Compute Harriott’s predetermined manufacturing overhead rate for 2020.ii) State the journal entries necessary to record the above transactions in the general journal:For direct materials used in NovemberFor indirect material issued to production in NovemberFor total manufacturing labour incurred in NovemberTo assign manufacturing labour to the appropriate accountsFor other manufacturing overhead incurredFor manufacturing overhead applied to production for November, given that Harriottmanufacturing company worked 2,860 machine hours.To move the completed jobs into finished goods inventoryTo sell the two completed jobs on accountiii) Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance. Discussion Question Job Costing IThe Harriott manufacturing company uses job order costing system. The company uses machinehours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020.The following activities took place in the work in process inventory during February:WIP Inventory A/CNovember 1 Bal. b/fDirect Materials Used$51,250256,400Other transactions incurred:• Indirect material issued to production was $40,360• Total manufacturing labour incurred in November was $368,000, 75% of this amountrepresented direct labour.• Other manufacturing overhead costs incurred for November amounted to $340,490.• Two jobs were completed with total costs of $384,000 & $270,000 respectively. They weresold on account at a margin of 33½% on sales.

Job order costing seems to be a method that occurs when consumers order tiny, one-of-a-kind…

Answered: i) Compute Harriott’s predetermined…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

i) Compute Harriott’s predetermined manufacturing overhead rate for 2020.
ii) State the journal entries necessary to record the above transactions in the general journal:

For direct materials used in November
For indirect material issued to production in November
For total manufacturing labour incurred in November
To assign manufacturing labour to the appropriate accounts
For other manufacturing overhead incurred
For manufacturing overhead applied to production for November, given that Harriott
manufacturing company worked 2,860 machine hours.
To move the completed jobs into finished goods inventory
To sell the two completed jobs on account

iii) Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance.