Madelyn Company manufactures unique, custom-made furniture. The company usesa job order system and applies overhead to production on the basis of direct laborcost. In computing a predetermined overhead rate for the year 2019, the companyestimated manufacturing overhead to be P26 million and direct labor costs to be P20million.Actual costs incurred during 2019Direct materinls usedDirect labor cost incurredInsurance- factory equipmentIndirect laborP 30,000.00018,000,000500,0007,500,0002,000,00011,000,0002,000,000Factory maintenanceRent- factory buildingDepreciation- factory equipment Instructions - Answer each of the following1. Why is Madelyn Company using a job order cost system?2. On what basis does the company allocate its manufacturing overhead?Compute the predetermined overhead rate for 2019.3. Compute the amount of the under- or over applied overhead for 2019.4. Determine the cost of goods sold given the following dataJanuary 1, 2019P 5,000,00013,000,000December 31, 2019Work in processFinished goodsP 4,000,00011,000,000

Name: Madelyn Company manufactures unique, custom-made furniture. The compa
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Description: Madelyn Company manufactures unique, custom-made furniture. The company usesa job order system and applies overhead to production on the basis of direct laborcost. In computing a predetermined overhead rate for the year 2019, the companyestimated ma

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Business

Accounting

Instructions - Answer each of the following 1. Why is Madelyn Company using a job order cost system? 2. On what basis does the company allocate its manufacturing overhead? Compute the predetermined overhead rate for 2019. 3. Compute the amount of the under- or over applied overhead for 2019.

Instructions - Answer each of the following 1. Why is Madelyn Company using a job order cost system? 2. On what basis does the company allocate its manufacturing overhead? Compute the predetermined overhead rate for 2019. 3. Compute the amount of the under- or over applied overhead for 2019.

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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Journalize the entries to record the following summarized operations related to production for a company using a job order cost system: a. b. a. Materials purchased on account b. C. C. d. e. f. 9. h. i. j. Prepaid expenses incurred on account Materials requisitioned: For production orders For general factory use Factory labor used: If an amount box does not require an entry, leave it blank. On production orders For general factory purposes Depreciation on factory equipment Expiration of prepaid expenses, chargeable to factory Factory overhead costs incurred on account Factory overhead applied, based on machine hours Jobs finished Jobs shipped to customers: Cost Selling price (assume all sold on account) J $176,000 12,200 153,700 2,700 141,300 12,000 37,000 6,100 76,000 105,300 415,300 412,000 638,000
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.
Selected cost data for Aerial Co for the year are as follows: Estimated overhead cost for the year Estimated direct labor cost for the year Actual manufacturing overhead cost for the year Actual direct labor cost for the year Aerial Co uses direct labor to apply overhead to jobs. What is the over or under applied overhead for this year? Do not round the predetermined rate -- only round the last computation. Enter over applied as a positive amount and under applied as a negative amount. Round to the nearest whole number, omit commas and dollar signs. Your Answer: $ 150,000 $ 81,000 $ 164,000 $ 76,000 1 Answer
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
The predetermined overhead allocation rate for a given accounting period is calculated ________ Group of answer choices before the accounting period begins before the commencement of each job during the accounting period at the end of the accounting period after the completion of each job during the accounting period
a) Compute Exclusive Souvenirs predetermined manufacturing overhead rate for 2020. b) State the journal entries necessary to record the following transactions in the general journal: (i) Totalmaterialsissuedtoproduction(ii) Manufacturing labour incurred(iii)Assign manufacturing labour to the appropriate accounts (iv)Other manufacturing overhead incurred(v) Manufacturing overhead applied to production (vi)Move completed jobs to finished goods(vii) Account for jobs completed and sold
please provide handwritten solutiosn
explain why the factory overhead balance must be disposed of at year end?
please explain properly
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.
Assume it is the beginning of the month, using the estimates and a job-order costing system, what price would you recommend Lina quote for each of the above two jobs to ensure profitability in the long term? 2. Assume it is the end of the month, determine the amount of under- or over-applied overhead and recommend to Lina how the amount should be accounted for. 3. Prepare a schedule of cost of goods manufactured for the month - these were the only two jobs started and sold (zero beginning and ending work-in-process inventory). Assume that actual materials used and the labour rate/hours are the same as estimated. Hint: refer to Exhibit 5.11 on page 213 of text for suggested format.
a. Prepare the entry to record the factory labor costs for the month of January. b. Prepare the entry to assign factory labor to production. E15.2 (LO 1, 2, 3, 4), AP Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following. intuom Materials Requisition Slips bo FU 1 Job Number 429 430 431 to General use To $2,500 3,500 4,400 $10,400 800 $11,200 10 $12,500 1,200 $13,700 25 gan 15100 Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month. 1200 how W $1,900 3,000 7,600 Labor Time Tickets S ACE2 out 2013 Instructions a. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. b. Post…