JR Company uses the normal cost system. The companyapplies overhead using a predetermined overhead rateusing machine hours. At the beginning of the year, thecompany estimated that it would work 44,000 machinehours and incur P176,000 in factory overhead costs.Following are transactions for the month of February.[a] Purchased raw materials from CZ company, P555,000.Terms 2/10,n/60.[b] Materials were requisitioned for production, P431,000direct and 13,000 indirect.[c] Returned materials to CZ company, P5,000 (gross) onthe 3rd day after purchase.[d] Paid payroll for the week:EarningsP220,000ТаxSSPHICDirect24,00013,4805,000Indirect40,0002,0001,160800Selling50,0005,0002,5001,230Admin6,8502,43070,000[e] Depreciation of factory machine is P119,000[f] Factory utilities costs incurred, P24,000.[g] Overhead was applied to production using 47,00013,000hours.[h] P700,000 worth of goods were completed.[i) Paid utilities.(j] Sold 75% of completed goods at 60% above cost.How much is the cost of goods manufactured?

Cost of goods manufactured shows total costs incurred on manufacturing and production of goods in…

Answered: JR Company uses the normal cost system.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

← Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $280,000. The details of production and costs incurred during the year are as follows: Actual direct materials cost Actual direct labor cost $811,000 $170,000 $262,000 5,520 hours Actual overhead costs incurred Total direct labor hours What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.) OA. 164.71% OB. 34.53% OC. 93.57% O D. 64.89% XXID
DEF Co. uses a job costing system. Normal costing is used and factory overhead is applied on the basis of machine hours. At the beginning of the year, management estimated that the company would incur P1,007,500 of factory overhead costs and use 77,500 machine-hours. DEF Co. recorded the following events during the month of April: a) Purchased 180,000 pounds of materials on account; the cost was P2.50 per pound. b) Issued120,000 pounds of materials to production. Of this amount, 15,000 pounds were used as indirect materials. c) Direct labor costs incurred was P240,000 and indirect labor costs incurred were P50,000. d) Depreciation on equipment for the month amounted to P15,700. e) Insurance costs were P3,500 for the manufacturing property f) Paid 8,500 cash for utilities and other miscellaneous items for the manufacturing plant. g) Ob E5 costing P6,500 and Job F4 costing P77,00 were completed during the month and transferred to the Finished Goods account. h) Job F4 was shipped to the…
Coolidge Company estimates that the factory overhead for the following year will be $196726. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 16142 hours. The machine hours for the month of April for all of the jobs were 11319. If the actual factory overhead for April totaled 332923, determine the over- or underapplied amount for the month. Select one:a. $17700b. $16142c. $137947d. $196726
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? Pick one a. $54,800 underapplied b. $6,000 overapplied c. $54,800 overapplied d. $6,000 underapplied A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The entry to apply the factory overhead costs for the year would include a a. credit to Factory Overhead for $432,000 b. debit to Factory…
Shahid Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead Rs. 182,000 Estimated machine-hours 5,600 Actual manufacturing overhead Rs. 187,000 Actual machine-hours 5,100 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. Calculate predetermined overhead rate?
Washburn Company produces earbuds. During the year, manufacturing overhead costs are estimated to be $ 200,000. Estimated machine usage is 2,500 hours. The company assigns overhead based on machine hours. Job No. 551 used 90 machine hours. Compute the predetermined overhead rate. Predetermined overhead rate $?
How much is the cost of goods manufactured? ANSWER IN GOOD ACCOUNTING FORM. THANK YOU :)
During the current month, Sheridan Company incurs the following manufacturing costs. (a) Purchased raw materials of $17,700 on account. (b) Incurred factory labor of $38,400. (c) Factory utilities of $3,200 are payable, prepaid factory property taxes of $2,660 have expired, and depreciation on the factory building is $9,600. Record the company's manufacturing costs in its job order costing system. Purchased raw materials Incurred factory labor Factory utilities Factory property taxes Factory depreciation Balance $ LA $ Raw Materials Inventory $ $ Manufacturing Costs Factory Labor Manufacturing Overhead $
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $421,800; materials of $412,000 and direct labor of $222,000. During the year Adams incurred $444,600 in materials costs, $439,600 in overhead costs and $226,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
Mary Rose Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead Cost are expected to be 550,000 for the year and the machine usage is estimated at 250,000 hours. In the month of January, 52,000 of overhead cost are incurred and and 10,000 machine hours are used. For the remainder of the year, 548,000 of overhead cost are incurred and 240,000 machine hours are worked. Required: 1. The manufacturing overhead for the year is? 2. Over or under applied overhead for January is? 3. Over or under applies overhead for December 31 is?
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $351,500 and direct labor hours would be 46,900. Actual manufacturing overhead costs incurred were $323,800, and actual direct labor hours were 54,200. The journal entry to apply the factory overhead costs for the year would include a a.credit to Factory Overhead for $405,958 b.credit to Factory Overhead for $351,500 c.debit to Factory Overhead for $323,800 d.debit to Factory Overhead for $405,958
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $349,900 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $303,900, and actual direct labor hours were 52,500. The journal entry to apply factory overhead costs for the year would include a A. Credit to factory overhead for 349,900 B. Debit to factory overhead for 390,600 C. Credit to factory overhead for $390,600 D. Debit to factory overhead for $303,900

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

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