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 55% of direct labor cost.**Inventories**| Inventory Type | Beginning of Period | End of Period ||-------------------|---------------------|-----------------|| Raw materials | $41,000 | $37,000 || Work in process | $9,800 | $19,700 || Finished goods | $54,000 | $35,000 |**Cost Incurred for the Period**- Raw materials purchases: $197,000- Factory payroll: $100,000- Factory overhead (actual): - Indirect materials used: $10,000 - Indirect labor used: $23,000 - Other overhead costs: $109,000 **Educational Website Transcription:**---### Journal Entry Illustration#### Transactions: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.---**Journal Entry Worksheet Interface:**- **Transaction List Button:** A button labeled "View transaction list."- **Journal Entry Worksheet** - There are two tabs labeled "A" and "B" for navigation. - The current prompt in tab A instructs: "Record the entry for other actual overhead costs incurred (all paid in Cash)."- **Important Note:** "Note: Enter debits before credits."---#### Data Entry Table:| Transaction | General Journal | Debit | Credit ||-------------|---------------------|-------|--------|| 1 | (Empty field) | (Empty field) | (Empty field) || | (Empty field) | (Empty field) | (Empty field) || | (Empty field) | (Empty field) | (Empty field) || | (Empty field) | (Empty field) | (Empty field) || | (Empty field) | (Empty field) | (Empty field) |---**Function Buttons:**- **Record Entry:** A button to submit the journal entry.- **Clear Entry:** A button to remove the existing entry data.- **View General Journal:** A button to review the compiled journal.---This exercise provides practice in creating journal entries for accounting, focusing on recording overhead costs and processing overhead applications.

Name: The following information is available for ADT Company, which produce
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Description: 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 55% of direct labor cost.**Inventories**| Inventor

The journal entries are the first step of accounting process to record the transactions of the business. The overhead cost is applied to the production on the basis of predetermined overhead rate. JOURNAL S. No Particulars Debit Amt $ Credit amt $ 1. Manufacturing overhead 109,000 Cash 109,000 (To record other manufacturing overhead cost incurred) 2. Work in process 42,350 Manufacturing overhead 42,350 (To record Applied overhead cost) Factory payroll = $100,000 Indirect labor costs = $23,000 Direct Labor cost = 100,000 - 23,000 = $77,000 Overhead Applied = 77,000 * 55% = $42,350

Business

Accounting

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 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 41,000 9,800 54,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used End of Period $ 37,000 19,700 35,000 $ 197,000 100,000 10,000 23,000 100 000

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 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 41,000 9,800 54,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used End of Period $ 37,000 19,700 35,000 $ 197,000 100,000 10,000 23,000 100 000

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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Telstar uses job order costing. The T-accounts below summarize its production activity for the year. Raw Materials Inventory Debit Factory Wages Payable Debit Credit Credit 46,900 Work in Process Inventory Debit Credit 26,150 9,900 26,150 87,650 104,584 Required 1 172,220 1. Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied overhead) 2. Compute the amount that overhead is overapplied or underapplied. Required 2 127,900 Complete this question by entering your answers in the tabs below. Finished Goods Inventory Credit Debit 172,220 155,190 Required 1 Required 2 87,650 42, 150 Compute the amount for each of the following. a. Direct materials used b. Indirect materials used c. Direct labor used d. Indirect labor used e. Cost of goods manufactured f. Cost of goods sold (before closing over- or underapplied…
Required information Use the following information to answer questions. (Algo) [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 55% of direct labor cost. Inventories Raw materials Work in process Finished goods Beginning of period $ 43,000 9,200 63,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 57,000 18,600 34,300 $ 183,000 150,000 18,000 34,500 98,500 Exercise 15-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2, P3, P4 1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect materials used. Solve for direct materials used in the…
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 55% of direct labor cost. Inventories Raw materials -Work in process Finished goods Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs 1. Raw materials purchases for cash. 2. Direct materials used. 3. Indirect materials used. View transaction list Beginning of period $ 40,000 9,400 56,000 Journal entry worksheet A Prepare journal entries for the above transactions for the period. B C Transaction 1 Note: Enter debits before credits. End of Period $ 50,000 20,600 34,000 $ 183,000 150,000 11,000 34,500 91,000 Record the raw material purchases for cash. General Journal Debit Credit
Please complete both parts (see picture below).
XYZ Company uses a job costing system and applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. Information for the current year is as follows: Estimated manufacturing overhead OMR65,000; Actual manufacturing overhead OMR63,000; Estimated direct labor hours 20,000; Actual direct labor hours 22,000. The amount of over- or underapplied overhead for the year was Select one: O a. OMR2,000 overapplied O b. OMR2,000 underapplied c. None of the answers given d. OMRZ500 overapplied e. OMR8,500 underapplied 1 OMR8,500 overapplied
A job order costing company had the following ending balances and cost of goods sold prior to any adjustments for under/over-applied overhead. Raw Materials: $20,000 Work-in-process: $60,000 Finished Goods: $40,000 Cost of Goods Sold: $100,000 The company incurred total manufacturing overhead costs of $360,000. The amount of overhead that was debited to work-in-process was $300,000. Which of the following shows the correct journal entry for the adjustment for under/over-applied overhead? The company uses the method that adjusts three different accounts. Debit. Raw Materials $10,000 Debit. Work-in-process $30,000 Debit. Finished Goods $20,000 Credit. Manuf. Overhead Debit. Manuf. Overhead $60,000 Credit. Raw Materials $10,000 Credit. Work-in-process $30,000 Credit. Finished Goods $20,000 Debit. Manuf. Overhead $60,000 Credit. Work-in-process $18,000 Credit. Finished Goods $12,000 Credit. Cost of Goods Sold $30,000 Debit. Work-in-process Debit. Finished Goods Debit. Cost of Goods Sold…
A company uses job-order costing system with a pre-determined overhead rate based onthe machine hours. The total machine hours are 64,000 hours. The variable manufacturingoverhead per machine hour is $6 and the estimated total fixed manufacturing overheadscost is $704,000. The additional information for a job order "JOCS" is summarized asfollows:20DescriptionNumber of unitsTotal machine hoursDirect materials80$1,400$2,800Direct labor costsThe company marks up it unit product costs by 25%. With the provided information,compute the selling price of the unit in JOCS.
What is the total amount of actual factory overhead?
Use the following information to answer questions. (Algo) [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 55% 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) $ 41,000 9,200 50,000 Indirect materials used Indirect labor used Other overhead costs End of Period $ 42,000 20,700 33,700 $ 176,000 150,000 8,000 34,500 117,500 Exercise 15-14 (Algo) Recording direct and indirect labor LO P2, P3 1. Direct labor used (recorded as factory wages payable). 2. Indirect labor used (recorded as factory wages payable). Prepare journal entries for the above transactions for the period.
2
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 55% of direct labor cost. Inventories Raw materials $ 38,000 Work in 9,200 process Finished goods 63,000 Beginning End of of period Period $ 41,000 20,300 33,500 Cost incurred for the period Raw materials purchases $ 184,000 Factory payroll 300,000 Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs Exercise 19-13 (Algo) Recording materials; direct and indirect LO P1, P3 1. Raw materials purchases for cash. 2. Direct materials used. 3. Indirect materials used. View transaction list Prepare journal entries for the above transactions for the period. 13,000 69,000 107,000 Journal entry worksheet
The company uses a job-order costing system that applies overhead to jobs based on direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. The beginning inventory balances were as follows: Raw materials Work in process Finished goods During the year, the following transactions were completed: a. Raw materials purchased on account, $160,000. b. Raw materials used in production, $144,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect). c. Cash paid to employees: Direct labor Indirect labor Sales commissions Administrative salaries d. Rent for the year was $18,700 ($13,300 related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $18,000. f. Advertising costs incurred, $13,000. g. Depreciation on equipment, $22,000 ($17,000…