Homework Help is Here – Start Your Trial Now!
Business
Accounting
Predetermined Overhead Rate Calculation: Estimated Annual Overhead: $720,000 Estimated Annual Direct Labor Hours: 24,000 Predetermined Overhead Rate: [To be calculated] Overhead Applied to Jobs during the Period: Overhead Applied: [To be calculated] Total Cost of Jobs 102 and 103 at the End of the Period: Job 102: [To be calculated] Job 103: [To be calculated]

Predetermined Overhead Rate Calculation: Estimated Annual Overhead: $720,000 Estimated Annual Direct Labor Hours: 24,000 Predetermined Overhead Rate: [To be calculated] Overhead Applied to Jobs during the Period: Overhead Applied: [To be calculated] Total Cost of Jobs 102 and 103 at the End of the Period: Job 102: [To be calculated] Job 103: [To be calculated]

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
Topic Video
Question

  1. Predetermined Overhead Rate Calculation:

    • Estimated Annual Overhead: $720,000
    • Estimated Annual Direct Labor Hours: 24,000
    • Predetermined Overhead Rate: [To be calculated]

  2. Overhead Applied to Jobs during the Period:

    • Overhead Applied: [To be calculated]

  3. Total Cost of Jobs 102 and 103 at the End of the Period:

    • Job 102: [To be calculated]
    • Job 103: [To be calculated]

  4. Cost of Jobs on the Balance Sheet:

    • Job 102: [Specify location on the balance sheet]
    • Job 103: [Specify location on the balance sheet]

  5. Journal Entries in the 'T' Accounts (Ledger Accounts Tab):

    • [List the journal entries and their corresponding accounts]

  6. Ending Balances in All Accounts (Ledger Accounts Tab):

    • [List the ending balances of each account]

  7. Over- or Underapplied Overhead Calculation (Ledger Accounts Tab):

    • Over- or Underapplied Overhead: [To be calculated]

  8. Journal Entry to Dispose of Overhead Balance (Ledger Accounts Tab):

    • [Provide the journal entry to dispose of the overhead balance]

  9. Statement of Cost of Goods Manufactured (Reports Tab):

    • [Present the statement of cost of goods manufactured]

  10. Income Statement (Reports Tab):

    • [Present the income statement]

  11. Basic Balance Sheet (Reports Tab):

    • [Present the basic balance sheet]

 

 

Required:          
1 Compute the predetermined overhead rate. 
           
  Predetermined overhead rate        
           
2 Compute how much overhead would be applied to jobs during the period:
           
  Overhead applied        
           
3 Compute the total cost of Jobs 102 and 103 at the end of the period.  You will enter your calculation in the 'Ledger Accounts' tab of this workbook. 
           
  Where will the cost of each of these jobs appear on the Balance sheet?
           
   
           
4 Post the journal entries to the 'T' Accounts in the 'Ledger Accounts' tab.  Calculate the ending balances in all of the accounts. 
           
5 Calculate the amount of over- or underapplied overhead in the 'Ledger Accounts' tab. 
           
6 Post the journal entry in the T accounts to dispose of the overhead balance in the 'Ledger Accounts' tab. 
           
7 Prepare a statement of cost of goods manufactured report in the 'Reports' tab. 
           
8 Prepare an income statement in the 'Reports' tab. 
           
9 Prepare a basic balance sheet in the 'Reports' tab.   
(d) (e) (g) (h) Total Applied overhead to jobs based on the number of direct labor hours required Job Number Job 102 Job 103 Total Rent Depreciation Insurance Utilities Recorded the following actual manufacturing costs: Total 19,000 Advertising Depreciation Direct labor hours Other expenses Amount 300 200 Compute the predetermined overhead rate. 500 Explanation 6,000 Paid factory rent in cash 5.000 Factory equipment 3,000 policy expire Recorded the following general and administrative costs: Received factory utility bill but did not 2,000 pay it. 16,000 Amount Had one month of factory insurance. Explanation 2,000 Advertising paid in cash 3,000 Office equipment Miscellaneous expense incurred but not 1,000 paid. Total Sold Job 101, which is recorded in Finished Goods: Sales Price Cost 6,000 55,000 30,000 Completed Job 102 but did not sell it; Job 103 is still in process at year-end. 1/1 (Beg) 1/1(Beg) Finished Goods 30,000 Sales Revenue Cash and Other Assets 100,000 Stockholders' Equity 70,000 1/1 (Beg) Cost of Goods Sold Selling, General, and Administrative Expenses Payables and Other Liabilities 85,000 1/1 (Beg) 9 Sales Revenue Less: Cost of Goods Sold Beginning Finished Goods Inventory Plus: Cost of Goods Manufactured" (see schedule above) Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Under-/Overapplied Overhead Adjusted Cost of Goods Sold Gross Profit Less: Operating (Period) Expenses Net Income from Operations Assets Cash and Other Assets Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Total Assets Income Statement For the Month of January Sampson Company Balance Sheet As of January 31st Liabilities Payables and Other Liabilities Stockholders' Equity
Transcribed Image Text:(d) (e) (g) (h) Total Applied overhead to jobs based on the number of direct labor hours required Job Number Job 102 Job 103 Total Rent Depreciation Insurance Utilities Recorded the following actual manufacturing costs: Total 19,000 Advertising Depreciation Direct labor hours Other expenses Amount 300 200 Compute the predetermined overhead rate. 500 Explanation 6,000 Paid factory rent in cash 5.000 Factory equipment 3,000 policy expire Recorded the following general and administrative costs: Received factory utility bill but did not 2,000 pay it. 16,000 Amount Had one month of factory insurance. Explanation 2,000 Advertising paid in cash 3,000 Office equipment Miscellaneous expense incurred but not 1,000 paid. Total Sold Job 101, which is recorded in Finished Goods: Sales Price Cost 6,000 55,000 30,000 Completed Job 102 but did not sell it; Job 103 is still in process at year-end. 1/1 (Beg) 1/1(Beg) Finished Goods 30,000 Sales Revenue Cash and Other Assets 100,000 Stockholders' Equity 70,000 1/1 (Beg) Cost of Goods Sold Selling, General, and Administrative Expenses Payables and Other Liabilities 85,000 1/1 (Beg) 9 Sales Revenue Less: Cost of Goods Sold Beginning Finished Goods Inventory Plus: Cost of Goods Manufactured" (see schedule above) Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Under-/Overapplied Overhead Adjusted Cost of Goods Sold Gross Profit Less: Operating (Period) Expenses Net Income from Operations Assets Cash and Other Assets Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Total Assets Income Statement For the Month of January Sampson Company Balance Sheet As of January 31st Liabilities Payables and Other Liabilities Stockholders' Equity
Sampson Company uses a job order cost system with overhead applied based on direct labor hours. See estimated amounts below. Note the beginning balances for Finished Goods (Job 101) and Work-in-Process (Jobs 102 & 103) for the costs accumulated to date. Also note, the beginning balances in the other balance sheet accounts. Estimated Annual Overhead Estimated Annual Direct Labor Hours 24,000 During January the comapny had the following transactions: (a) (b) (c) (d) (e) Purchased raw materials on accout in the amount of: Issued the following materials into production: Direct materials Indirect materials Total 720,000 Direct labor Recorded salaries and wages as follows: Indirect labor Salaries Total Job Number Job 102 Job 103 Total Amount MI 7,000 Job 102 Job 103 2,000 Used on both jobs. 9,000 Amount 10,000 Job 102 Job 103 For factory 4,000 supervision Explanation 19,000 Applied overhead to jobs based on the number of direct labor hours required Direct labor hours 5,000 staff Explanation 300 200 Amount 500 For administrative Recorded the following actual manufacturing costs: AAAA Explanation ... 10,000 Be 2,000 5,000 6,000 4,000 1/1 (Beg) 1/1 (Beg) 1/1 (Beg) Raw Materials Inventory Work in Process Inventory 15,000 Finished Goods 30,000 Sales Revenue 1/1 (Beg) Manufacturing Overhead Job Sheet: 102 15,000 Job Sheet: 103 Cost of Goods Sold 0 Selling, General, and Administrative Expenses 8 Beginning Raw Materials Inventory Plus: Raw Material Purchases Less: Indirect Material Used Less: Ending Raw Materials Inventory Direct Materials Used in Production Direct Labor Manufacturing Overhead Total Current Manufacturing Costs Plus: Beginning Work in Process Inventory Total Work in Process Less: Ending Work in Process Inventory Cost of Goods Manufactured* Sales Revenue Less: Cost of Goods Sold Beginning Finished Goods Inventory Plus: Cost of Goods Manufactured* (see schedule above) Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Under-/Overapplied Overhead Adjusted Cost of Goods Sold Gross Profit Less: Operating (Period) Expenses .... Sampson Company Cost of Goods Manufactured Report For the Month of January #REF! #REF! #REF! Sampson Company Income Statement For the Month of January
Transcribed Image Text:Sampson Company uses a job order cost system with overhead applied based on direct labor hours. See estimated amounts below. Note the beginning balances for Finished Goods (Job 101) and Work-in-Process (Jobs 102 & 103) for the costs accumulated to date. Also note, the beginning balances in the other balance sheet accounts. Estimated Annual Overhead Estimated Annual Direct Labor Hours 24,000 During January the comapny had the following transactions: (a) (b) (c) (d) (e) Purchased raw materials on accout in the amount of: Issued the following materials into production: Direct materials Indirect materials Total 720,000 Direct labor Recorded salaries and wages as follows: Indirect labor Salaries Total Job Number Job 102 Job 103 Total Amount MI 7,000 Job 102 Job 103 2,000 Used on both jobs. 9,000 Amount 10,000 Job 102 Job 103 For factory 4,000 supervision Explanation 19,000 Applied overhead to jobs based on the number of direct labor hours required Direct labor hours 5,000 staff Explanation 300 200 Amount 500 For administrative Recorded the following actual manufacturing costs: AAAA Explanation ... 10,000 Be 2,000 5,000 6,000 4,000 1/1 (Beg) 1/1 (Beg) 1/1 (Beg) Raw Materials Inventory Work in Process Inventory 15,000 Finished Goods 30,000 Sales Revenue 1/1 (Beg) Manufacturing Overhead Job Sheet: 102 15,000 Job Sheet: 103 Cost of Goods Sold 0 Selling, General, and Administrative Expenses 8 Beginning Raw Materials Inventory Plus: Raw Material Purchases Less: Indirect Material Used Less: Ending Raw Materials Inventory Direct Materials Used in Production Direct Labor Manufacturing Overhead Total Current Manufacturing Costs Plus: Beginning Work in Process Inventory Total Work in Process Less: Ending Work in Process Inventory Cost of Goods Manufactured* Sales Revenue Less: Cost of Goods Sold Beginning Finished Goods Inventory Plus: Cost of Goods Manufactured* (see schedule above) Cost of Goods Available for Sale Less: Ending Finished Goods Inventory Unadjusted Cost of Goods Sold Under-/Overapplied Overhead Adjusted Cost of Goods Sold Gross Profit Less: Operating (Period) Expenses .... Sampson Company Cost of Goods Manufactured Report For the Month of January #REF! #REF! #REF! Sampson Company Income Statement For the Month of January
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
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