Simpson Manufacturing has the following standard cost sheet for one of its products: Total 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour $ 10 50 Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 10 40 $ 110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Units manufactured Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 376 $ 20,680 22,410 5,312 15,800 1,880 pounds 830 hours Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Account Work-in-process inventory Finished goods inventory Cost of goods sold Debit (total) Credit (total) $ 177,000 142,640 119,690 $ 142,640 119,690
Simpson Manufacturing has the following standard cost sheet for one of its products: Total 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour $ 10 50 Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 10 40 $ 110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Units manufactured Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 376 $ 20,680 22,410 5,312 15,800 1,880 pounds 830 hours Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Account Work-in-process inventory Finished goods inventory Cost of goods sold Debit (total) Credit (total) $ 177,000 142,640 119,690 $ 142,640 119,690
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 10E: Compute the total job cost for each of the following scenarios: a. If the direct labor cost method...
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Question
![Simpson Manufacturing has the following standard cost sheet for one of its products:
Total
5 pounds at $2 per pound
2 hours at $25 per hour
2 hours at $5 per hour
2 hours at $20 per hour
Direct materials
$ 10
Direct labor
50
Variable factory overhead
Fixed factory overhead
10
40
Cost per unit
$ 110
The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory
overhead rate based on a practical capacity of 400 units of the product.
Simpson has the following actual operating results for the year just completed:
Units manufactured
376
$ 20,680
Direct materials purchased and used
Direct labor incurred
Variable factory overhead incurred
Fixed factory overhead incurred
1,880 pounds
830 hours
22,410
5,312
15,800
Before closing the periodic accounts, the (standard cost) entries in selected accounts follow:
Debit (total) Credit (tota1)
$ 177,000
142,640
119,690
Account
$ 142,640
Work-in-process inventory
Finished goods inventory
Cost of goods sold
119,690](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91a1897c-6376-41f7-9c6e-a56c1adb050a%2F1b359d5f-e066-4ff4-a304-7decdc8c2f8e%2Fwqk3pma_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Simpson Manufacturing has the following standard cost sheet for one of its products:
Total
5 pounds at $2 per pound
2 hours at $25 per hour
2 hours at $5 per hour
2 hours at $20 per hour
Direct materials
$ 10
Direct labor
50
Variable factory overhead
Fixed factory overhead
10
40
Cost per unit
$ 110
The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory
overhead rate based on a practical capacity of 400 units of the product.
Simpson has the following actual operating results for the year just completed:
Units manufactured
376
$ 20,680
Direct materials purchased and used
Direct labor incurred
Variable factory overhead incurred
Fixed factory overhead incurred
1,880 pounds
830 hours
22,410
5,312
15,800
Before closing the periodic accounts, the (standard cost) entries in selected accounts follow:
Debit (total) Credit (tota1)
$ 177,000
142,640
119,690
Account
$ 142,640
Work-in-process inventory
Finished goods inventory
Cost of goods sold
119,690
![Journal entry worksheet
2
3 4 5
<>
Record the incurrence of factory overhead costs.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a
Record entry
Clear entry
View general jourmal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91a1897c-6376-41f7-9c6e-a56c1adb050a%2F1b359d5f-e066-4ff4-a304-7decdc8c2f8e%2Fl42vuh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Journal entry worksheet
2
3 4 5
<>
Record the incurrence of factory overhead costs.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a
Record entry
Clear entry
View general jourmal
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