Homework Help is Here – Start Your Trial Now!
Business
Accounting
Josie Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year. Machine Hours 150,000 Factory Overhead Cost 1,800,000 The company cost records show the following actual cost incurred for the year. Machine Hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (includes Factory Overhead applied of P72,000) 200,000 Finished Goods (includes Factory Overhead applied of P360,000) 1,000,000 Cost of Goods Sold (includes Factory Overhead applied of P1,008,000) 2,800,000 Compute the Factory Overhead rate. Computer the under or over-applied Factory Overhead. Assume the variance is material, what is the adjustment of the Cost of Goods Sold? Assume the variance is material, what is the variance share of the Finished Goods Inventory account? Assume tbe variance is material what is the variance share of the Work in PrOcess accOunt?

Josie Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year. Machine Hours 150,000 Factory Overhead Cost 1,800,000 The company cost records show the following actual cost incurred for the year. Machine Hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (includes Factory Overhead applied of P72,000) 200,000 Finished Goods (includes Factory Overhead applied of P360,000) 1,000,000 Cost of Goods Sold (includes Factory Overhead applied of P1,008,000) 2,800,000 Compute the Factory Overhead rate. Computer the under or over-applied Factory Overhead. Assume the variance is material, what is the adjustment of the Cost of Goods Sold? Assume the variance is material, what is the variance share of the Finished Goods Inventory account? Assume tbe variance is material what is the variance share of the Work in PrOcess accOunt?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
answer quickly
Josie Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year. Machine Hours 150,000 Factory Overhead Cost 1,800,000 The company cost records show the following actual cost incurred for the year. Machine Hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (includes Factory Overhead applied of P72,000) 200,000 Finished Goods (includes Factory Overhead applied of P360,000) 1,000,000 Cost of Goods Sold (includes Factory Overhead applied of P1,008,000) 2,800,000 Compute the Factory Overhead rate. Computer the under or over-applied Factory Overhead. Assume the variance is material, what is the adjustment of the Cost of Goods Sold? Assume the variance is material, what is the variance share of the Finished Goods Inventory account? Assume the variance is material, what is the variance share of the Work in Process account?
Transcribed Image Text:Josie Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year. Machine Hours 150,000 Factory Overhead Cost 1,800,000 The company cost records show the following actual cost incurred for the year. Machine Hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (includes Factory Overhead applied of P72,000) 200,000 Finished Goods (includes Factory Overhead applied of P360,000) 1,000,000 Cost of Goods Sold (includes Factory Overhead applied of P1,008,000) 2,800,000 Compute the Factory Overhead rate. Computer the under or over-applied Factory Overhead. Assume the variance is material, what is the adjustment of the Cost of Goods Sold? Assume the variance is material, what is the variance share of the Finished Goods Inventory account? Assume the variance is material, what is the variance share of the Work in Process account?
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS