The following information were taken from the books of Mas Masayun Gud Eni Corporation during the month of June 2020. The company applies overhead at a rate of P200 per direct labor hour. The transactions are: a. Purchased materials on account, P400,000 of which P80,000 are indirect. b. Issued materials to production, P800,000 of which P160,000 are indirect. c. Paid factory labor for 5,000 hours, P1,800,000 of which P300,000 are indirect. d. Paid production supervisor’s salary, P120,000. e. Received and paid factory utility bills for the month, P160,000. f. Depreciation of production assets for the month, P150,000. g. Units finished were 10,000 units in the amount of P3,000,000. h. Sales for the month, P7,000,000. Goods related to sales cost P2,800,000. Required: Manufacturing Accounts Beginning Balances Raw Materials Inventory P560,000 Work-in-Process Inventory P1,300,000 Finished Goods Inventory P800,000 Indirect Materials Inventory P240,000 Factory Overhead - 1. Compute for the overapplied or underapplied overhead for the month. 2. Preparethe journal entry to close the overapplied or underapplied overhead assuming the amount is considered (a) immaterial
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.
The following information were taken from the books of Mas Masayun Gud Eni Corporation during the month of June 2020. The company applies
a. Purchased materials on account, P400,000 of which P80,000 are indirect.
b. Issued materials to production, P800,000 of which P160,000 are indirect.
c. Paid factory labor for 5,000 hours, P1,800,000 of which P300,000 are indirect.
d. Paid production supervisor’s salary, P120,000.
e. Received and paid factory utility bills for the month, P160,000.
f.
g. Units finished were 10,000 units in the amount of P3,000,000.
h. Sales for the month, P7,000,000. Goods related to sales cost P2,800,000.
Required:
Manufacturing Accounts Beginning Balances
Raw Materials Inventory P560,000
Work-in-Process Inventory P1,300,000
Finished Goods Inventory P800,000
Indirect Materials Inventory P240,000
Factory Overhead -
1. Compute for the overapplied or underapplied overhead for the month.
2. Preparethe
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