Question:If direct labor for the month is $40,000 overhead is applied based ondirect labor, annual overhead is $600,000, and annual direct labor is$1,000,000, what is the entry to charge direct labor to production?a. Debit Work-in-Process Inventory $40,000; credit Payroll $40,000b. Debit Overhead-Applied $40,000; credit Work in Process $40,000c. Debit Work-in-Process Inventory $24,000; credit Overhead-Applied$24,000d. Debit Work-in-Process Inventory $66,000; credit Overhead-Applied$66,000

Step 1: Debit Work-in-Process Inventory $40,000; credit Payroll $40,000 DrCr The Journal entry will…

Answered: Question: If direct labor for the month…

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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Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $575,000, and total direct labor costs would be $460,000. During February, the actual direct labor cost totaled $40,000, and factory overhead cost incurred totaled $52,000. a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. % b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory Overhead-Blending Department? Amount: Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory overhead?
Bernard Incorporated uses a job-order costing system and a predetermined overhead rate based on direct labor hours.At the beginning of the year, the company estimated manufacturing overhead for the year would be $1,184,000 and direct labor hours would be 80,000 hours.The following information pertains to September of the current year: Job X10 Job X11 Job X12 Work in Process, Sept. 1 $14,000 $18,000 $24,000 March production activity: Materials used $12,800 $8,200 $9,700 Direct labour used $3,400 $4,600 $6,500 Machine hours 390 620 790 Labour hours 1,050 1,170 1,180 Required (round answers to 2 decimal points) Calculate the predetermined overhead rate (POHR). Complete a brief job-order cost sheets for the 3 jobs for the month of September. (Hint: this requires applying overhead using the rate calculated in part 1 above).
Saved The following date Is for a company that uses a job-order costing system: Estimated direct labor hours Estimated manufacturing overhead costs Actual direct labor hours Actual manufacturing overhead costs 12,000 $39,000 11,000 S37,000 Overhead Is applied based on direct labor-hours. What Is the predetermined overhead rate? Multiple Cholce $3.08 per direct labor-hour $3.25 per direct labor-hour $3.36 per direct labor-hour $3.55 per direct labor-hour
Job XXX required 260 direct labour hours of which 220 hours were incurred during the current accounting period. The predetermined overhead cost rate is £7.50 per direct labour hour. How much overhead should be applied to Job XXX during the current accounting period? a. £1,650 b. £366 c. £1,950 d. £915
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] Cost of Jobs on the Balance Sheet: Job 102: [Specify location on the balance sheet] Job 103: [Specify location on the balance sheet] Journal Entries in the 'T' Accounts (Ledger Accounts Tab): [List the journal entries and their corresponding accounts] Ending Balances in All Accounts (Ledger Accounts Tab): [List the ending balances of each account] Over- or Underapplied Overhead Calculation (Ledger Accounts Tab): Over- or Underapplied Overhead: [To be calculated] Journal Entry to Dispose of Overhead Balance (Ledger Accounts Tab): [Provide the journal entry to dispose of the overhead balance]…
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $588,500, and total direct labor costs would be $535,000. During February, the actual direct labor cost totaled $46,000, and factory overhead cost incurred totaled $52,600. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.fill in the blank% Journalize the entry to apply factory overhead to production for February. fill in the blank $fill in the blank $fill in the blank fill in the blank $fill in the blank $fill in the blank What is the February 28 balance of the account Factory Overhead—Blending Department? Amount: $fill in the blank Debit or Credit? ____________ Does the balance for Feb. 28…
ssume estimated overhead cost is $4,500,000, estimated direct labor costs is $3,000,000. Overhead is based on direct labor cost. If Job 265 incurs direct material costs of $963, direct labor of $1,750, and is sold for $7,200. **Use the following format for the journal entries: Dr. Raw Materials Inventory 500 Cr. Accounts Payable 500**** 1. What is the overhead rate? % 2. What is the journal entry to apply overhead to Job 5265? 3. What is total cost of Job? $ 4. What is gross profit? $ 5. At the end of the period it was determined that actual overhead incurred was $4,468,000. What is the adjusting entry to record the over/under applied OH?
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Applied vs. Actual Manufacturing Overhead direct labor incurred during the current year. a. Determine the under applied manufacturing overhead at year - end (assume it is significant). Under - applied manufacturing overhead $ b. Prepare a journal entry to record the disposition of the underapplied manufacturing overhead. Please use picture provided % is 150 Manufactuing overhead was 945,000$ and finished goods and cost of goods sold was 120, 000, 60, 000, and 420,000
Assume (1) estimated fixed manufacturing overhead for the coming perlod of $217,000, (2) estimated varlable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the perlod of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: Multiple Cholce $333,204. $325.926. $321,300. $327,000.
Assume that actual overhead costs were $78,000 and overhead allocated to jobs was $58,000. The unadjusted balance in Manufacturing Overhead would be was O A. $20,000 credit balance; overapplied O B. $20,000 credit balance; underapplied OC. $20,000 debit balance; underapplied O D. $20,000 debit balance; overapplied because the overhead
ll. Subject : - Accounting

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