[The following information applies to the questions displayed below.] The following Information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 70% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of Period Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) End of Period $ 43,000 $ 52,000 10, 200 21,300 63,000 35,600 Indirect materials used Indirect labor used Other overhead costs $ 210,000 345,000 15,000 80,000 120,000 1. Incurred other actual overhead costs (all paid in Cash). 2. Applied overhead to work in process.
[The following information applies to the questions displayed below.] The following Information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 70% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of Period Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) End of Period $ 43,000 $ 52,000 10, 200 21,300 63,000 35,600 Indirect materials used Indirect labor used Other overhead costs $ 210,000 345,000 15,000 80,000 120,000 1. Incurred other actual overhead costs (all paid in Cash). 2. Applied overhead to work in process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Not sure what I am doing wrong. Please help.
![No
A
m
Required Information
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security products and uses a job
order costing system. Overhead is applied using a predetermined overhead rate of 70% of direct labor cost.
Inventories
Raw materials
Work in process
Finished goods
Beginning of
Period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Cost incurred for the period
Indirect materials used
Indirect labor used
Other overhead costs
Transaction
1
2
$ 43,000
10, 200
63,000
1. Incurred other actual overhead costs (all paid in Cash).
2. Applied overhead to work in process.
Prepare Journal entries for the above transactions for the period.
End of Period
$ 52,000
21,300
35,600
$ 210,000
345,000
Factory overhead
Cash
15,000
80,000
120,000
Answer is complete but not entirely correct.
Work in process inventory
Factory overhead
General Journal
Debit
120,000
145,750
Credit
120,000
145,750](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71ce8e5a-a520-47c6-9f2e-d028b6184b03%2F513ba964-0d85-4ecd-bd0d-b7105fec61e6%2F50tfaag_processed.png&w=3840&q=75)
Transcribed Image Text:No
A
m
Required Information
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security products and uses a job
order costing system. Overhead is applied using a predetermined overhead rate of 70% of direct labor cost.
Inventories
Raw materials
Work in process
Finished goods
Beginning of
Period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Cost incurred for the period
Indirect materials used
Indirect labor used
Other overhead costs
Transaction
1
2
$ 43,000
10, 200
63,000
1. Incurred other actual overhead costs (all paid in Cash).
2. Applied overhead to work in process.
Prepare Journal entries for the above transactions for the period.
End of Period
$ 52,000
21,300
35,600
$ 210,000
345,000
Factory overhead
Cash
15,000
80,000
120,000
Answer is complete but not entirely correct.
Work in process inventory
Factory overhead
General Journal
Debit
120,000
145,750
Credit
120,000
145,750
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