Prepare journal entries.
Q: JPE Corporation has a job order cost system. JPE applies overhead to production at a predetermined…
A: Job order cost system is the most appropriate system where the products are made on the demand of…
Q: Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct…
A: Answers for the given 3 requirements are as follows:
Q: Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on…
A: Direct material cost is the cost of raw material produced or purchased for producing the final…
Q: Cavy Company estimates that total factory overhead costs will be $653,310 for the year. Direct labor…
A: Predetermined factory overhead rate = Total factory overhead costs / Estimated direct labor hours…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Job order costing indicates computation of total cost incurred related to each cost separately by…
Q: Cavy Company estimates that total factory overhead costs will be $747,937 for the year. Direct labor…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate…
A: "Overhead" generally refers to the ongoing operational costs and expenses incurred by a business or…
Q: Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: WORKING : Overhead rate = $1,960,000 / 49,000 = 40 per direct labour hour JOB OVERHEAD APPLIED…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…
Q: Dallas Company uses a job order costing system. Th company's executives estimated that direct labor…
A: Overhead cost are indirect operating cost and are not directly related to manufacturing but they…
Q: The total factory overhead applied during September is:
A: Predetermined overhead Rate = Estimated Factory Overhead/Estimated Direct Labor hours Total Factory…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and…
Q: Walter company uses a predetermined overhead rate based on direct labor hours to apply manufacturing…
A: Predetermined overhead rate = Manufacturing Overheads / Direct labor hours Direct labor hours…
Q: CiscoCharmander Manufacturing company, a manufacturer of custom-made drones, uses a job order cost…
A: Overhead expenses are those expenses which can not be traced to a particular item. These are the…
Q: On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and…
A: Overhead allocation is the division of indirect costs among manufactured goods. It is required by…
Q: Cavy Company estimates that the factory overhead for the following year will be $1,119,400. The…
A: The overhead is applied to the production on the basis of a predetermined overhead rate. The…
Q: Waterway Industries uses job order costing for its brand new line of sewing machines. The cost…
A: Product Cost refers to all cost incurred in manufacturing of the productProduct Cost:= Material +…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: One category of operating costs unrelated to a facility's output is manufacturing overhead. Other…
Q: Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct…
A: Predetermined overhead rate = Total estimated factory overhead costs / total estimated Direct labor…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: Manufacturing overhead refers to indirect costs incurred during the manufacturing process that…
Q: Johnson Manufacturing company, a manufacturer of custom-made drones, uses a job order cost system to…
A: Under or over absorption of overhead is calculated by taking out the difference between the actual…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: To determine the costs assigned to each job, we'll use the job cost system and calculate the total…
Q: Harwood Company is a manufacturer that operates a job-order costing system. Overhead costs are…
A: Given that: Estimated manufacturing overhead = $850,000 Estimated machine hours = 75000 hours
Q: JO cost accounting system
A: Direct labor = Factory overhead/Percentage of factory overhead on direct labor
Q: On January 1, VYLGHA946 Corp. estimated its total overhead for the upcoming year to Be s.300,000 anu…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor…
A: Overhead (OH) means total of all indirect expenses which is not know in advance and it is charged on…
Q: Cavy Company estimates that total factory overhead costs will be $572,128 for the year. Direct labor…
A: Solution a1: Predetermined factory overhead rate = Estimated overhead / Estimated direct labor hours…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: According to the question given, we need to compute the cost that should be assigned to each…
Q: Beamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing…
A: Factory overhead, also known as manufacturing overhead or indirect manufacturing costs, refers to…
Q: On March 5, 2023, the Materials Department of Cards by Shannon received the following: Materials…
A: The journal entries are prepared to record the transactions on regular basis. The overhead is…
Q: Keenan Company estimates that total factory overhead costs will be $322,000 for the year. Direct…
A: The predetermined overhead rate is calculated as the Estimated overhead cost divided by Estimated…
Q: Salinger Company estimates that total factory overhead costs will be $78,000 for the year. Direct…
A: a. Predetermined Factory Overhead Rate = Total Factory Overhead Costs/ Direct Labour Hours = $78,000…
Q: Erkens Company uses a job costing system with normal costing and applies factory overhead on the…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: Austin Company uses a job order cost accounting system. The company's executives estimated that…
A: Predetermined overhead rate is the ratio of estimated manufacturing overhead costs and the estimated…
Q: Eli Lilly Corporation has their headquarters in Indiana. Lilly uses a predetermined overhead rate…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means an indirect cost rate.Predetermined overhead…
Q: JPE Corporation has a job order cost system. JPE applies overhead to production at a predetermined…
A: Job order cost system is followed in an organisation where the customised products or services are…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Cost of goods manufactured is the total costs incurred in the production of goods for a period, it…
Q: Robert Company produces pipes for concert-quality organs. Each job is unique. In April 2019, it…
A: Job costing Job costing is referring to a system that record the costs spent on completion of a job.…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: Manufacturing overhead, often referred to as factory overhead, represents indirect manufacturing…
Q: Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of…
A: According to the question given, we need to compute the job cost..Job costing:Job costing refers to…
Q: The company expects that it will work for 7,000 machine-hours in January 2020. Using the high-low…
A: High-low method is the method which is used by the company to measure the fixed assets which are…
Prepare
ABC Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses
The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows:
a. Raw materials purchased on account, P300,000
b. Raw materials requisitioned for production, P270,000 (90% direct and 10% indirect).
c. Labor cost incurred in the factory, P190,000, of which P100,000 was direct and the balance indirect cost.
d. Depreciation recorded on factory equipment is P68,000.
e. Other manufacturing overhead costs incurred, P55,000, 50% of which paid and the balance on account.
f. Manufacturing overhead cost was applied to production on a basis of 34,000 machine-hours worked during January.
g. The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)
Step by step
Solved in 2 steps
- On January 1, VYLGHA946 Corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be 25,000. VYLGHA946's actual machine hours for the year were 28,360. The company uses job-order costing with machine hours as the allocation base. At the end of the year, the VYLGHA946's books reveal following actual results: Advertising Expense $9,200 (#ID18121) Direct Labor $22,000 Purchases of Raw Materials $17,200 Rent, Factory Building $51,900 Indirect Labor $54,500 Sales Commissions $9,600 Utilities, Factory $11,700 Maintenance, Factory Equipment $9,500 CEO Salary $7,500 Depreciation, Factory Equipment $14,000 Q. What is VYLGHA946's amount of over- or under-applied OH? (Enter just the amount.) A. $Carla Vista Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs. The budget for 2022 was as follows: Direct labour Manufacturing overhead $1,804,000 902,000 As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $113,600, and 1819C, with total direct labour charges of $390,100. Machine hours were 287 hours for 17688 and 647 hours for 1819C. Direct materials issued for 1768B amounted to $220,000, and for 1819C they amounted to $420,500. Total charges to the Manufacturing Overhead Control account for the year were $898,500, and direct labour charges made to all jobs amounted to $1,583,600, representing 247,500 direct labour hours. There were no beginning inventories. In…Cavy Company estimates that total factory overhead costs will be $685,938 for the year. Direct labor hours are estimated to be 109,400. a. Determine the predetermined factory overhead rate. Round your answer to the nearest cent.$fill in the blank 23d34d049fd4031_1 b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 1,200 and Job 777 if the amount of direct labor hours is 3,300. Job 345 $fill in the blank 23d34d049fd4031_2 Job 777 $fill in the blank 23d34d049fd4031_3 c. Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. fill in the blank 919f7901300ffaf_2 fill in the blank 919f7901300ffaf_4
- Cavy Company estimates that total factory overhead costs will be $1,053,206 for the year. Direct labor hours are estimated to be 107,800. a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. $4 per direct labor hour b. Determine the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 1,200 and to Job 777 if the amount of direct labor hours is 3,300. Job 345 Job 777 $4 c. Journalize the entry to record the factory overhead applied if Jobs 345 and 777 are the only jobs for the period. If an amount box does not require an entry, leave it blank.A manufacturing company estimates it will incur $240,000 of overhead costs in the next year. The company applies overhead using machine hours and estimates it will use 1,600 machine hours in the next year. During the month of June, the company used 80 machine hours on Job 1 and 70 machine hours on Job 2. 1. Compute the predetermined overhead rate to be used to apply overhead during the year. 2. Determine how much overhead should be applied to Job 1 and to Job 2 for June. 3. Prepare the journal entry to record overhead applied for June.Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: Information State University On-the-Go Home Precious Pre-school Direct Materials Cost (food) $53,000 $36,900 $81,800 Direct Labor Cost $44,600 $40,700 $53,600 Labor Hours 2,920 3,510 4,160 The company applies overhead at a rate of $16.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $392,700. The actual overhead for the month was $147,400, of which $122,000 should be credited to accounts payable and $38,000 should be credited to Accumulated Depreciation.Determine the costs that should be assigned to each of the jobs.
- Shoe Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses Job Order Costing system. For the current year 2021, the company estimated that it would work 400,000 machine-hours and will incur P2,800,000 in manufacturing overhead cost. The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows: Requirement: CREATE A JOURNAL ENTRY if The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct labor hours are estimated to be 513,000. Required: A. For Bergan Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. Round your answer to the nearest cent. B. During May, Bergan Company accumulated 19,000 hours of direct labor costs on Job 200 and 23,000 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. C. Prepare the journal entry on May 30 to apply factory overhead to both jobs in May according to the predetermined overhead rate. Refer to the Chart of Accounts for exact wording of account titles.Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: Information State University On-the-Go Home Precious Pre-school Direct Materials Cost (food) $54,100 $35,100 $79,700 Direct Labor Cost $43,600 $41,400 $53,500 Labor Hours 3,210 3,690 4,120 The company applies overhead at a rate of $20.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $401,200. The allocated overhead for the month was $149,800, of which $129,200 should be credited to accounts payable and $41,700 should be credited to Accumulated Depreciation.
- Coronado Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 49,000 direct labor hours. During March, the company worked on the following five jobs: Job BeginningBalance Direct Materialsadded duringMarch Direct Laboradded duringMarch Direct Labor Hoursadded duringMarch 134 $120,600 $6,000 $9,400 140 158 125,450 3,500 12,160 450 212 21,800 88,400 36,650 3,500 287 36,350 71,800 31,850 2,550 301 18,990 21,845 1,400 Total $304,200 $188,690 $111,905 8,040 Jobs 134 and 158 were started in January,…Cavy Company estimates that total factory overhead costs will be $1,011,028 for the year. Direct labor hours are estimated to be 100,700. a. Determine the predetermined factory overhead rate. Round your answer to the nearest cent.$fill in the blank 8b99eb02a009f9f_1 b. Determine the amount of factory overhead applied to Job 567 if the amount of direct labor hours is 1,200 and Job 999 if the amount of direct labor hours is 2,800. Job 567 $fill in the blank 8b99eb02a009f9f_2 Job 999 $fill in the blank 8b99eb02a009f9f_3 c. Prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate. fill in the blank aa9138f9703b038_2 fill in the blank aa9138f9703b038_4Kapoor Catering Co. uses a job cost system. Its activities in November 2020, the first month of operation, were as follows: Information State University On-the-Go Home Precious Pre-school Direct Materials Cost (food) $55,900 $37,200 $79,700 Direct Labor Cost $43,500 $38,800 $53,100 Labor Hours 3,360 3,550 3,810 The company applies overhead at a rate of $16.00 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $406,800. The actual overhead for the month was $148,400, of which $118,600 should be credited to accounts payable and $41,500 should be credited to Accumulated Depreciation.Determine the costs that should be assigned to each of the jobs. State University On-the-Go Home Precious Pre-school TOTAL Direct Materials Direct Labor Applied Overhead Total Job Cost Manufacturing Overhead Debit Credit
