### Requireda. What was Mason’s Cost of Goods Manufactured for the month of August?b. What was the balance in WIP Inventory at the end of August?c. Was MOH under- or overapplied for the month of August? What effect does this have on any balances in WIP Inventory and FG Inventory on the balance sheet? What effect does this have on COGS on the income statement? In its job costing system, Mason Co. applies Manufacturing Overhead (MOH) to jobs using a budgeted MOH rate based on Direct Labor (DL) dollars. The rate, which is 200% of DL dollars, was calculated last December and will be used throughout the current year. On August 1, Mason had one job, #150, in process, with Direct Materials (DM) costs of $2,000 and DL costs of $3,000.During August, DM and DL costs were added to Job #150, as well as new Jobs #151 and #152, as follows:| | Job #150 | Job #151 | Job #152 ||---------------|----------|----------|----------|| Direct materials | $0 | $4,000 | $1,000 || Direct labor | $1,500 | $5,000 | $2,500 |The actual MOH cost for the month of August was $20,000. During the month, Mason completed Jobs #150 and #151.

Name: ### Requireda. What was Mason’s Cost of Goods Manufactured for the mo
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: ### Requireda. What was Mason’s Cost of Goods Manufactured for the month of August?b. What was the balance in WIP Inventory at the end of August?c. Was MOH under- or overapplied for the month of August? What effect does this have on any balances in

Manufacturing overhead means the cost which has been incurred in factory and indirectly related with production. Some manufacturing overhead can be fixed and other remain variable. Answer a :- Job No. 150 and 151 , jobs completed Opening work in progress (2000+3000+3000*200%) = 11,000 Direct material = 4,000 Direct labour (1500+5000) = 6,500 Manufacturing overhead absorbed (6500*200%) = 13,000 Total cost of goods manufactured = 34,500 Answer b :- Job No. 152 (Ending work in progress inventory) Direct material = 1,000 Direct labour = 2,500 Manufacturing overhead absorbed (2500*200%) = 5,000 Total cost of ending WIP inventory = 8,500 Answer c :- Actual manufacturing overhead incurred = 20,000 Manufacturing overhead absorbed (13000+5000) = 18,000 Manufacturing overhead under absorbed = 2,000 Since the manufacturing overhead has been under absorbed in this question by $ 2,000 it means that the value of WIP and finished goods inventory has been on lower side i.e. balance of WIP and finished goods inventory has been shown at reduced value in balance sheet. Since no goods has been sold out this period , it means that no value is assigned to the cost of goods sold on income statement. It means that Cost of goods sold has nil value hence, no effect on that.

Business

Accounting

Required a. What was Mason's Cost of Goods Manufactured for the month of August? b. What was the balance in WIP Inventory at the end of August? c. Was MOH under- or overapplied for the month of August? What effect does this have on any bal- ances in WIP Inventory and FG Inventory on the balance sheet? What effect does this have on COGS on the income statement?

Required a. What was Mason's Cost of Goods Manufactured for the month of August? b. What was the balance in WIP Inventory at the end of August? c. Was MOH under- or overapplied for the month of August? What effect does this have on any bal- ances in WIP Inventory and FG Inventory on the balance sheet? What effect does this have on COGS on the income statement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. Inventory turnover is calculated as __________ divided by __________. cost of goods sold; inventory cost of goods sold; average inventory cost of goods sold; total assets average inventory; cost of goods sold 2. The number of days’ sales in inventory is calculated as __________ divided by __________. average inventory; average daily cost of goods sold ending inventory; cost of goods sold net income; sales cost of goods sold; average inventory
When preparing interim financial statements, what two methods can companies utilize to estimate cost of goods sold and ending inventory?
What is thehe Normal balances of the a) merchandise inventory, b) accounts payable, c) cost of goods sold, d) customer refunds payable e) estimated returns inventory accounts
wer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is 2. Assume that the company uses the average cost method. The value of the ending inventory on Decemb $. 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is
For a company like Best Buy, what does the balance of Cost of Goods Sold in the income statement represent? What does the balance of Inventory in the balance sheet represent?
When a company that uses the periodic inventory system wants to remove beginning estimated returns inventory, which of the following accounts is debited? a.Estimated Returns Inventory b.Cost of Goods Sold c.Customer Refunds Payable d.Income Summary
Define days' sales in inventory (what do the results mean). Provide an example.
2
Suppose Ajax Corporation overstates its ending inventory amount. What effect will this have on the reported amount of cost of goods sold in the year of the error? a. Overstate cost of goods sold.b. Understate cost of goods sold.c. Have no effect on cost of goods sold.d. Not possible to determine with information given.
A. How do I record the adjustment for entry? B. For what amount would MU inventory be reported in the December 31, 2022, balance sheet? C. Prepare an updated gross profit section of a partial income statement accounting for this additional information.
Show the effects of the labor and MOH costs through T-accounts for the company's inventory and Cost of Sales accounts. (For balances beginning/ending in O select "Beg. Bal." and "End Bal." for the date and O for the amounts for the balance of the account.) WIP Inventory FG Inventory ✓
Required a. Compute the balance in trade accounts payable as of December 31, Year 4. b. Compute the balance in retained earnings as of December 31, Year 4. c. Compute the balance in the inventory account as of December 31, Year 4. (Assume that the level of invertory did not change from last year.) (For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Accounts payable 2$ 70,000 a. b. Retained earnings c. Inventory