Chapter 5 HomeworkJob Costs Using a Plantwide Overhead RateNaranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was$255,000, and budgeted direct labor hours were 17,000. The average wage rate for direct labor is expected tobe $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:Beginning balanceMaterials requisitionedDirect labor costJob 39 Job 40 Job 41Job 42$24,000$32,900$19,900$020,800 23,200 10,40012,80011,90020,3005,0503,700Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39was sold at 115 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, thatcustomer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided tohold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in FinishedGoods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.Required:1. Calculate the balance in Work in Process as of June 30.52,600 X2. Calculate the balance in Finished Goods as of June 30.76,700 X3. Calculate the cost of goods sold for June.55,600 X4. Calculate the price charged for Job 39. Round your answer to the nearest cent.63,940 X5. What if the customer for Job 40 was able to pay for the job by June 30? What would happen to the balancein Finished Goods?Finished Goods would increase XWhat would happen to the balance of Cost of Goods Sold?Cost of Goods Sold would increasev

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Answered: Required: 1. Calculate the balance in…

Required: 1. Calculate the balance in Work in Process as of June 30. 52,600 X 2. Calculate the balance in Finished Goods as of June 30. $ 76,700 X 3. Calculate the cost of goods sold for June.

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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The following T-accounts represent September activity for Kelly Tools: Work-in-Process Inventory Materials Inventory Debit Credit Debit Credit Beginning Ending Balance 24,900 Balance 42,400 (9/1) (9/30) Direct 120,800 Labor Cost of Goods Sold Debit Credit Manufacturing Overhead Applied Credit Debit Finished Goods Inventory Debit Credit Ending Balance 70,500 (9/30) Manufacturing Overhead Control Credit Debit 132,510 Wages Payable Sales Revenue Debit Credit Debit Credit 528,500 . Additional Data •Sales are billed at 175 percent of Cost of Goods Sold before the over- or underapplied overhead is prorated. Materials of $82,100 were purchased during the month, and the balance in the Materials Inventory account increased by $8,500 • Overhead is applied at the rate of 210 percent of direct materials cost. The balance in the Finished Goods Inventory account decreased by $23,900 during the month before any proration of under- or overapplied overhead. • Total credits to the Wages Payable account…
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Selected accounts with some amounts omitted are as follows: Work in Process Date Transaction Debit amount Date Transaction Credit amount Aug. 1 Balance 279, 100 Aug. 31 Goods finished 190, 700 31 Direct materials X 31 Direct labor 47, 400 31 Factory overhead X Factory Overhead Date Transaction Debit amount Date Transaction Credit amount Aug. 1-31 Costs incurred 113,000 Aug. 1 Balance 12, 100 31 Applied X If the balance of Work in Process on August 31 is $196, 400, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs? a. $190, 700 b. $12, 100 c. $113, 000 d. $14, 220
Prepare journal entries to record the production activities. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $135,600.
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Problem 3: Lederman Inc. has provided the following data for the month of April: Beginning $12,000 $27,000 Inventories Work in process... Finished goods.... Additional Information: Direct materials.. Direct labor costs.. Manufacturing overhead cost incurred...... Manufacturing overhead cost applied to WIP Required: a. Determine costs of goods manufactured for april b. Was the overhead underapplied or overapplied? By how much? $51,000 $91,000 Ending $16,000 $25,000 $60,000 $59,000
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