The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office: RM Inventory Beg. Bal. 23,100 ? 75,300 ? End. Bal. 18,300 WIP Inventory Beg. Bal. 52,800 282,300 DM 72,300 DL 90,300 Applied MOH 113,100 End. Bal. ? FG Inventory Beg. Bal. 90,300 ? ? End. Bal. 72,400 MOH Control (Total debits during the year) 111,300 ? (a) What is the amount of indirect material cost incurred this period? Indirect material cost $7800 (b) Specify whether MOH for the period was under- or overapplied, and by how much. MOH for the period was overapplied by $1800 . (c) Determine the COGS amount for this period (before any MOH difference would have been closed out). COGS $300,200 (d) Prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to four decimal places, if necessary). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e.g. 0.5250 and final answers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Debit Credit MOH Control 1800 WIP Inventory 198.57 FG Inventroy 311.17 Cost of Goods Sold 1290.26 (e1) Did the proration of the MOH difference in part (d), have a significant effect on COGS this period? (Round answer to 2 decimal places, e.g. 52.75%.) Change as a % of the original .43 % Specify the new adjusted COGS. (Round answer to 0 decimal places, e.g. 5,275.) New adjusted COGS $298,910 If Cullumber reported sales of $475,300 this year, what gross margin percentage did it earn? (Round answer to 2 decimal places, e.g. 52.75%.) Gross margin percentage ????? % If the company goal was to generate at least a 35% gross margin, did it meet its goal? Since the gross margin percentage is????? than the 35% gross margin goal, ????? , Cullumber ????? its goal.

The following T-accounts provide selected data about Cullumber’s financial results for the year. Sadly, several key components went missing after a thief broke into the Cullumber accounting office: RM Inventory Beg. Bal. 23,100 ? 75,300 ? End. Bal. 18,300 WIP Inventory Beg. Bal. 52,800 282,300 DM 72,300 DL 90,300 Applied MOH 113,100 End. Bal. ? FG Inventory Beg. Bal. 90,300 ? ? End. Bal. 72,400 MOH Control (Total debits during the year) 111,300 ? (a) What is the amount of indirect material cost incurred this period? Indirect material cost $7800 (b) Specify whether MOH for the period was under- or overapplied, and by how much. MOH for the period was overapplied by $1800 . (c) Determine the COGS amount for this period (before any MOH difference would have been closed out). COGS $300,200 (d) Prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to four decimal places, if necessary). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e.g. 0.5250 and final answers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Debit Credit MOH Control 1800 WIP Inventory 198.57 FG Inventroy 311.17 Cost of Goods Sold 1290.26 (e1) Did the proration of the MOH difference in part (d), have a significant effect on COGS this period? (Round answer to 2 decimal places, e.g. 52.75%.) Change as a % of the original .43 % Specify the new adjusted COGS. (Round answer to 0 decimal places, e.g. 5,275.) New adjusted COGS $298,910 If Cullumber reported sales of $475,300 this year, what gross margin percentage did it earn? (Round answer to 2 decimal places, e.g. 52.75%.) Gross margin percentage ????? % If the company goal was to generate at least a 35% gross margin, did it meet its goal? Since the gross margin percentage is????? than the 35% gross margin goal, ????? , Cullumber ????? its goal.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

RM Inventory
Beg. Bal.	23,100	?
	75,300	?
End. Bal.	18,300

WIP Inventory
Beg. Bal.	52,800	282,300
DM	72,300
DL	90,300
Applied MOH	113,100
End. Bal.	?

FG Inventory
Beg. Bal.	90,300	?
	?
End. Bal.	72,400

MOH Control
(Total debits during the year)	111,300		?

(a) What is the amount of indirect material cost incurred this period?

Indirect material cost

$7800

(b) Specify whether MOH for the period was under- or overapplied, and by how much.

MOH for the period was overapplied by $1800 .

COGS

$300,200

(d) Prepare the journal entry to close out the MOH difference, given that the company wants to prorate it to the appropriate accounts based on their ending balances (before proration) (round proportions to four decimal places, if necessary). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round proportions to four decimal places, e.g. 0.5250 and final answers to 2 decimal places, e.g. 5,275.25.)

Account Titles and Explanation	Debit	Credit
MOH Control	1800
WIP Inventory		198.57
FG Inventroy		311.17
Cost of Goods Sold		1290.26

(e1)

Did the proration of the MOH difference in part (d), have a significant effect on COGS this period? (Round answer to 2 decimal places, e.g. 52.75%.)

Change as a % of the original

.43 %

Specify the new adjusted COGS. (Round answer to 0 decimal places, e.g. 5,275.)

New adjusted COGS

$298,910

If Cullumber reported sales of $475,300 this year, what gross margin percentage did it earn? (Round answer to 2 decimal places, e.g. 52.75%.)

Gross margin percentage

????? %

If the company goal was to generate at least a 35% gross margin, did it meet its goal?

Since the gross margin percentage is????? than the 35% gross margin goal, ????? , Cullumber ????? its goal.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.