ppendix 4A) Predetermined Overhead Rates, Variances, Cost Flows Instructions Chart of Accounts Calculations Journal Concluding Questions Instructions Predetermined Overhead Rates, Variances, Cost Flows Barrymore Costume Company, located in New York City, sews costumes for plays and musicals. Barrymore considers itself primarily a service firm, as it never produces costumes without a preexisting order and only purchases materials to the specifications of the particular job. Any finished goods ending inventory is temporary and is zeroed out as soon as the show producer pays for the order. Overhead is applied on the basis of direct labor cost. During the first quarter of the year, the following activity took place in each of the accounts listed: Work In Process Bal. 17,000 Complete 245,000 DL 80,000 OH 140,000 DM 40,000 Bal. 32,000 Finished Goods Bal. 40,000 Sold 210,000 Complete 245,000 Bal. 75,000 Overhead 138,500 140,000 Bal. 1,500 Cost of Goods Sold 210,000 Job 32 was the only job in process at the end of the first quarter. A total of 1,000 direct labor hours at $10 per hour were charged to Job 32.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 61P: (Appendix 4A) Predetermined Overhead Rates, Variances, Cost Flows Barrymore Costume Company, located...

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ppendix 4A) Predetermined Overhead Rates, Variances, Cost Flows

Instructions

Chart of Accounts

Calculations

Journal

Concluding Questions

Instructions

Predetermined Overhead Rates, Variances, Cost Flows

Barrymore Costume Company, located in New York City, sews costumes for plays and musicals. Barrymore considers itself primarily a service firm, as it never produces costumes without a preexisting order and only purchases materials to the specifications of the particular job. Any finished goods ending inventory is temporary and is zeroed out as soon as the show producer pays for the order. Overhead is applied on the basis of direct labor cost. During the first quarter of the year, the following activity took place in each of the accounts listed: