**Manufacturing Overhead Costs****Estimated Costs:**- Manufacturing Overhead Costs: $500,000- Direct Labor Hours Estimated: 50,000- Machine Hours Estimated: 250,000- Direct Labor Costs Estimated: $1,000,000**Determine the Pre-determined Overhead Rate based on:**a. Direct Labor Hours b. Machine Hours c. Direct Labor Cost ---**AJ Smith Company Inventory and Transactions****Beginning Inventory Balances (as of 1/1/2019):**- Raw Materials: $16,000- WIP (Work In Progress): $25,000 (all in Job 111)- Finished Goods: $0**January Transactions:**1. Purchased Raw Materials on account for $240,0002. Salaries paid to factory workers: $70,000 (all paid in cash)3. Factory rent: $60,000, and utility bills: $45,000 for the month (all paid)4. Depreciation on factory equipment: $95,000**Material and Labor Charged to Jobs in WIP:**| | Material | Labor | Machine Hours ||------|----------|-------|---------------|| Job 111 | $40,000 | $15,000 | 15,000 || Job 112 | $70,000 | $25,000 | 23,000 || Job 113 | $50,000 | $5,000 | 22,000 || General Use | $10,000 | $25,000 | || Total | $170,000 | $70,000 | 60,000 |- **Journal Entries**: Make a journal for the material and labor costs to jobs (2 Journals)5. Manufacturing overhead is applied at a rate of $4 per machine hour. (60,000 machine hours in the month). Make the entry to apply overhead.6. Jobs 111 and 112 were completed and transferred to Finished Goods.7. Job 111 was sold for $200,000. Make the journals for this.---**Over and Under Applied Overhead:**8. What is the over or under-applied overhead amount? ______ (over/under)**Inventory Calculation:**9. What is the total ending inventory including RM (Raw Material), WIP, and FG (Finished Goods) at

In This numerical has covered the concept of Manufacturing Overhead Cost. The Predetermined overhead…

III. Manufacturing Overhead Costs estimated 500,000 Direct Labor Hours estimated 50,000 Machine Hours estimated 250,000 Direct Labor Costs estimated $ 1,000,000 Determine the Pre-determined Overhead rate based on the following: a Direct Labor Hours b Machine Hours c Direct Labor Cost

III. Manufacturing Overhead Costs estimated 500,000 Direct Labor Hours estimated 50,000 Machine Hours estimated 250,000 Direct Labor Costs estimated $ 1,000,000 Determine the Pre-determined Overhead rate based on the following: a Direct Labor Hours b Machine Hours c Direct Labor Cost

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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Subject : Accounting
ssume estimated overhead cost is $4,500,000, estimated direct labor costs is $3,000,000. Overhead is based on direct labor cost. If Job 265 incurs direct material costs of $963, direct labor of $1,750, and is sold for $7,200. **Use the following format for the journal entries: Dr. Raw Materials Inventory 500 Cr. Accounts Payable 500**** 1. What is the overhead rate? % 2. What is the journal entry to apply overhead to Job 5265? 3. What is total cost of Job? $ 4. What is gross profit? $ 5. At the end of the period it was determined that actual overhead incurred was $4,468,000. What is the adjusting entry to record the over/under applied OH?
Compute conversion costs given the following data: direct materials, $362, 300; direct labor, $ 208, 200; factory overhead, $188,400 and selling expenses, $39,400. a. $149,000 b. $ 396, 600 c. $550, 700 d. $758,900
Using a traditional cost system and applies overhead to production based on machine hours. Estimated overhead cost $150,000 Actual overhead cost $140,000 Estimated machine hours 20,000 hrs Actual machine hours 25,000 Determine the overhead variance for the period? Is it $10,000 overlapped?
Use three different activities as cost drivers, machine setups, machine hours, and inspections to compute the overhead rate for each activity. Activity Overhead per Activity Annual Usage Machine Setups $75,000 6,000 Machine Hours $85,002 5,484 Inspections 70,000 20,000
23. Using the activity-based costing method of applying manufacturing overhead, the amount of overhead applied to Job #414 would be: A) $29,600 B) $17,412 C) $34,824 $59,200 E) $36,000 24. Using the POHR based on direct labor hours, the amount of overhead costs applied to Job#414 would be: A) $36,000 B) $34,824 $17,412 D) $29,600 E) $59,200
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1. Calculate the plant-wide overhead rate using the following information: Estimated Total Manufacturing Costs Estimated Cost Allocation Base Actual Total Manufacturing Costs Actual Cost Allocation Base $20 per machine hour $30 per machine hour $1,000,000 50,000 machine hours $1,500,000 25,000 machine hours $60 per machine hour $40 per machine hour