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Required: i) Compute Fielder's predetermined manufacturing overhead rate for 2020. ii) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in February b) For indirect material issued to production in February c) For total manufacturing labour incurred in February d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred ) For manufacturing overhead applied to production for February, given that Fielder manufacturing company worked 2,750 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Fielder and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Fielder.

Required: i) Compute Fielder's predetermined manufacturing overhead rate for 2020. ii) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in February b) For indirect material issued to production in February c) For total manufacturing labour incurred in February d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred ) For manufacturing overhead applied to production for February, given that Fielder manufacturing company worked 2,750 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Fielder and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Fielder.

FINANCIAL ACCOUNTING
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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Required: i) ii) Compute Fielder's predetermined manufacturing overhead rate for 2020. State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in February b) For indirect material issued to production in February c) For total manufacturing labour incurred in February d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied to production for February, given that Fielder manufacturing company worked 2,750 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Fielder and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Fielder. vi) Determine the balance in work in process inventory on February 29.
Transcribed Image Text:Required: i) ii) Compute Fielder's predetermined manufacturing overhead rate for 2020. State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in February b) For indirect material issued to production in February c) For total manufacturing labour incurred in February d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied to production for February, given that Fielder manufacturing company worked 2,750 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Fielder and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Fielder. vi) Determine the balance in work in process inventory on February 29.
The Fielder manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C February 1 Bal. Direct Materials Used b/f 256,400 51,250 Other transactions incurred: • Indirect material issued to production was $38,000 • Total manufacturing labour incurred in February was $345,000, 80% of this amount represented direct labour. • Other manufacturing overhead costs incurred for February amounted to $340,750. • Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales.
Transcribed Image Text:The Fielder manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 7,850 machine hours would be worked and $1,256,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C February 1 Bal. Direct Materials Used b/f 256,400 51,250 Other transactions incurred: • Indirect material issued to production was $38,000 • Total manufacturing labour incurred in February was $345,000, 80% of this amount represented direct labour. • Other manufacturing overhead costs incurred for February amounted to $340,750. • Two jobs were completed with total costs of $324,000 & $240,000 respectively. They were sold on account at a margin of 40% on sales.
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