Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates itsmanufacturing overhead to be $421,200 and its direct labor costs to be $810,000. 2M worked on three jobs for the year. Job 2M-1,which was sold during Year 2, had actual direct labor costs of $420,750. Job 2M-2, which was completed but not sold at the end of theyear, had actual direct labor costs of $283,050. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of$61,200. Actual manufacturing overhead for Year 2 was $430,000.Required:Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Answer is not complete.NoTransactionGeneral JournalA1Cost of Goods SoldFinished Goods InventoryWork-in-Process InventoryManufacturing Overhead AppliedManufacturing Overhead ControlDebitCredit430,000

Step 1: Estimated manufacturing overhead costs = $421,200 Estimated direct labor costs = $810,000…

Answered: Marian Manufacturing (2M) applies…

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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Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? b. What was the over- or underapplied manufacturing overhead for Year 1?
Antoine Machining estimated its manufacturing overhead to be $279,000 and its direct materials costs to be $450,000 in Year 1. Three of the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $15,000 for Job AM002, $55,000 for Job AM005, and $70,000 for Job AM008. For Year 1, actual manufacturing overhead was $313,000 and total direct materials cost was $540,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory $ 20,088 Finished goods inventory 63,612 Cost of goods sold 251,100 Required: Prepare an entry to allocate the under- or overapplied overhead.
Lumos Maxima corporation manufacturers lamps and flashlights. They use a job-order cost system to accumulate their manufacturing costs, and a traditional allocation method for applying manufacturing overhead costs. The predetermined overhead rate is $16.00 per direct labor hour. During the month, White corporation worked on two different jobs. Job W-100 was completed and sold by the end of the month. Job W-200 was unfinished at the end of the period. Job W-100 Job W-200 Beginning Balance $19,400 $29,800 Direct Materials $34,200 $21,100 Direct Labor $36,000 $35,200 Actual Direct Labor Hours 8,200 6,400 What is the beginning balance of work in process at the end of the month? A. $188,500 B. $175,700 C. $220,800 D. $409,300
Munawar Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, Hanif Corporation incurred Rs. 150,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was underapplied Rs. 30,000 for the year. If the predetermined overhead rate was Rs. 6 per direct labor-hour, how many hours did the Corporation work during the year?
Company XYZapplies overhead cost to jobs on the basis of direct labior cost. Job A, which was started and completed during the current period, shows charges of $15,000 for direct materials, $13,000 for direct labor, and $26,000 for overhead on its job cost sheet. Job B, whichS still In process at year-end, shows charges of $12,400 for direct materlals and $24,000 for applied overhead. Direct labor cost of Job B at year-end Is Select one: O a None of the answers gIven- O b. $11,000 O C $36,400 O d. $13,000 O e. $12,000
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year—Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period’s estimated level of production. Sweeten also estimated $32,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.50 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 14,500 $…
Company XYZ applies overhead cost to jobs on the basis of direct labor cost. Job A, which was started and completed during the current period, shows charges of $15,000 for direct materials, $13,000 for direct labor, and $26,000 for overhead on its job cost sheet. Job B, which is still in process at year-end, shows charges of $12,400 for direct materials and $24,000 for applied overhead. Direct labor cost of Job B at year-end is: Select one: a. $12,000 b. None of the answers given c. $36,400 d. $11,000 e. $13,000
Antoine Machining estimated its manufacturing overhead to be $299,650 and its direct materials costs to be $461,000 in Year 1. Three of the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $26,000 for Job AM002, $66,000 for Job AM005, and $81,000 for Job AM008. For Year 1, actual manufacturing overhead was $318,500 and total direct materials cost was $551,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates. Required: How much overhead was assigned to each of the three jobs, AM002, AM005, and AM008? What was the over- or underapplied manufacturing overhead for Year1?
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year—Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period’s estimated level of production. Sweeten also estimated $25,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 10,000…
Hello, Please provide the steps to solve the problem below: At the beginning of the year, a company estimates total overhead costs of $300,000. The company applies overhead using direct labor costs and estimates it will spend $1,200,000 on direct labor during the year. What amount of overhead should be applied to "Job C" if that job uses $65,000 of direct labor hours during April?
Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $423,020 and its direct labor costs to be $813,500. 2M worked on three jobs for the year. Job 2M-1, which was sold during Year 2, had actual direct labor costs of $555,500. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $373,700. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $80,800. Actual manufacturing overhead for Year 2 was $558,800. Required: Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A Record the allocation of over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record…
Unigloo Corporation uses a predetermined overhead rate based on direct labour-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:Direct materials $5,000Direct labour $19,000Rent on factory building $16,000Sales salaries $24,000Depreciation of corporate office printers $13,000Depreciation on factory machinery $7,000Indirect materials $11,000Indirect labour $14,000Unigloo estimates that 12,000 direct labour-hours will be worked during the year. Calculate the predetermined overhead rate per hour.

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