The Brass Works is in the process of determining manufacturing overhead. Journalize the entries to record the following events to Factory Overhead, Administrative Expenses, and Selling Expenses, or allocated between the three as appropriate. All items were paid in cash at the time of acquisition. Next compute the overhead application rate and journalize the entry to apply overhead to Work in Process.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The Brass Works is in the process of determining manufacturing
a. Brass Works purchases an insurance policy for $4,000. It is computed that 80% of the value of the policy protects production, and the balance protects the administrative offices. Brass Works charges insurance initially to expense. If an amount box does not require an entry, leave it blank.
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| fill in the blank 00ffb9fe1014fa4_5 | fill in the blank 00ffb9fe1014fa4_6 | ||
| fill in the blank 00ffb9fe1014fa4_8 | fill in the blank 00ffb9fe1014fa4_9 |
b. The electric bill shows an amount due of $1,200. This meter is utilized only by production, as the office spaces have their own meters. If an amount box does not require an entry, leave it blank.
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c. Payroll reports that the sales manager's salary for the period is $3,500 and that production supervisors' wages for the period are $5,500. If an amount box does not require an entry, leave it blank.
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| fill in the blank 802f7106eff2015_5 | fill in the blank 802f7106eff2015_6 | ||
| fill in the blank 802f7106eff2015_8 | fill in the blank 802f7106eff2015_9 |
d. The stockroom reports that $2,575 of materials were purchased for the production maintenance department. If an amount box does not require an entry, leave it blank.
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e. If the driver for the application of overhead is drop-forge strokes and there are expected to be 1,000 strokes in this period, what is the rate per stroke? Round your answer to three decimal places.
$fill in the blank 92b627017fdb07c_1 per stroke
f. Assuming that there are 1,150 drop-forge strokes in this period, apply factory overhead to Work in Process. Use the rate calculated in part (e). If an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar.
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