Sheridan Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. 2. 3. 4. 5. Purchased 16,000 units of raw materials on account at a cost of $3.20 per unit. Standard cost was $3.00 per unit. Issued 16,000 units of raw materials for jobs that required 15,690 standard units of raw materials. Incurred 16,000 actual hours of direct labor at an actual rate of $5.00 per hour. The standard rate is $5.40 per hour. (Credi Factory Wages Payable.) Performed 16,000 hours of direct labor on jobs when standard hours were 16,180. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed. Journalize the January transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amo

Sheridan Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. 2. 3. 4. 5. Purchased 16,000 units of raw materials on account at a cost of $3.20 per unit. Standard cost was $3.00 per unit. Issued 16,000 units of raw materials for jobs that required 15,690 standard units of raw materials. Incurred 16,000 actual hours of direct labor at an actual rate of $5.00 per hour. The standard rate is $5.40 per hour. (Credi Factory Wages Payable.) Performed 16,000 hours of direct labor on jobs when standard hours were 16,180. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed. Journalize the January transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amo

Name: Sheridan Company installed a standard cost system on January 1. Selec
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Description: Sheridan Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows.1.2.3.4.5.Journalize the January transactions. (List all debit entries before credit entries. Credit account titles are aut

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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Salinger Company estimates that total factory overhead costs will be $78,000 for the year. Direct labor hours are estimated to be 13,000. a. For Salinger Company, determine the predetermined factory overhead rate using direct labor hours as the activity base. If required, round your answer to two decimal places b. During August, Salinger Company accumulated 850 hours of direct labor costs on Job 40 and 530 hours on Job 42. Determine the amount of factory overhead applied to Jobs 40 and 42 in August. c. Prepare the journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
Larned Corporation recorded the following transactions for the just completed month.a. $80,000 in raw materials were purchased on account.b. $71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000 was fordirect materials and the remainder was for indirect materials.c. Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and theremainder was for indirect labor.d. Additional manufacturing overhead costs of $175,000 were incurred.Required:Record the above transactions in journal entries.
The cost of goods manufactured for June was:
During the month of June, Job 100 was started. Data are as follows: Units produced is 1,200 units; Units sold is 1,200 ; raw materials requisitioned is 8,440 (includes indirect materials of 1,000); Direct labor hours is 3,600 hours; DL rate per hour is 30; Overhead rate per DL hour is 37.50. Products are sold to customer at 125% of cost. Under the normal cost, what is the gross margin for the products sold?
Henderson Industries applies manufacturing overhead to its jobs based on a predetermined overhead rate, which is calculated using direct labor costs. The following data pertains to Henderson Industries' Work in Process inventory for the month of April: April 1 balance: $ 26,000 Debits during April: Direct Materials: $40,000 Direct Labor: $50,000 Manufacturing Overhead: $37, 500 Throughout April, the company's Work in Process inventory account received credits totaling $120, 500, representing the Cost of Goods Manufactured for the month. By April 30, only one job was still in process, having accumulated $9, 600 in applied overhead costs. The question is, what is the direct materials cost in this unfinished job? The options are: Group of answer choices $10, 600 $16, 700 $12, 800 $23, 400
G Company manufactures two products: Product S and Product T. During January, 50 units of Product S and 300 units of Product T wee produced. And overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Activity Cost Driver Total cost 1. Material handling Number of requisitions P30,000 2. Machine setups Number of setups 27,000 3. Quality inspections Number of inspections 24,000 The cost drive volume for each product was as follows: Cost driver Product S Product T Number of requisitions 400 600 Number of setups 150 300 Number of inspections 200 400 Required: 1. Determine the overhead rate for each activity. 2. Allocate the manufacturing overhead costs to the two products using Activity Based Costing (ABC).
The Oliver Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $748,000, and estimated direct labor hours are 340,000. In October, the company incurred 30,000 direct labor hours. Read the requirements. Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate. (Abbreviation used; qty = Requirement 2. Determine the amount of overhead allocated in October. Predetermined OH allocation rate Begin by selecting the formula to allocate overhead costs. (Abbreviation used; qty = quantity.) Allocated mfg. = overhead costs The overhead allocated in October is quantity.)
McAllister, Inc. employs a normal costing system. The following information pertains to the year just ended.• Total manufacturing costs were $2,500,000.• Cost of goods manufactured was $2,425,000.• Applied manufacturing overhead was 30 percent of total manufacturing costs.• Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.Required:1. Compute the total direct-labor cost for the year.2. Calculate the total cost of direct material used during the year.3. Compute the value of the company’s work-in-process inventory on December 31.
In September, J Dogg Company purchased materials costing $455,000 and incurred direct labor cost of $550,000. Overhead totaled $850,000 for the month. Information on inventories was as follows: Materials Work in process Finished goods Required: Sept 1 $50,000 65,000 10,500 Sept 30 $55,000 55,000 12,500 A. Calculate the cost of direct materials used during September. $ B. Calculate the total manufacturing cost for September. C. Calculate the cost of goods manufactured for September. $ D. Calculate the cost of goods sold for September.
Recording Standards in Accounts The Assembly Department produced 3,000 units of product during March. Each unit required 1.75 standard direct labor hours. There were 5,600 actual hours used in the Assembly Department during March at an actual rate of $12 per hour. The standard direct labor rate is $13 per hour. Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. For a compound transaction, if an amount box does not require an entry, leave it blank. BE March 31
In July, one of the processing departments at Okamura Corporation had beginning work in process Inventory of $13,000 and ending work in process Inventory of $18,000. During the month, the cost of units transferred out from the department was $148,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be: Multiple Cholce $132,000 $119.000 $31.000 $166.000
The following transactions occurred during the month of April for Nelson Company:a. Purchased materials costing $4,610 on account.b. Requisitioned materials totaling $4,800 for use in production, $3,170 for Job 518 and theremainder for Job 519.c. Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month.Direct laborers are paid at the rate of $14 per hour.d. Applied overhead using a plantwide rate of $6.20 per direct labor hour.e. Incurred and paid in cash actual overhead for the month of $973.f. Completed and transferred Job 518 to Finished Goods.g. Sold on account Job 517, which had been completed and transferred to Finished Goodsin March, for cost ($2,770) plus 25%.Required:1. Prepare journal entries for Transactions a through e.2. Prepare job-order cost sheets for Jobs 518 and 519. Prepare journal entries forTransactions f and g. (Note: Round to the nearest dollar.)3. Prepare a schedule of cost of goods manufactured for April. Assume that the…