The following transactions pertains to Bahrain Company for 2021: a) Materials purchased on account, $62,500. b) Materials used in production as follows: direct materials, $33,600, indirect materials, $5,400. c) Manufacturing labor incurred $35,000. (90% for direct labor and 10% for indirect labor.) d) Other various manufacturing overhead costs incurred during the year is $18,900. e) Manufacturing overhead is allocated at a budgeted overhead rate 120% of direct labor cost. 1) the actual manufacturing overhead cost incurred at the end of the year was $27,800. The company decided to prorate the under-or-overallocated overhead using ending unadjusted balances of WIP. F.G and COGS before proration method Ending unadjusted balances before proration were as follows: Work-in-Process (WIP) $40,000 Finished Goods (FG) Cost of Goods Sold (GOGS) Required: Prepare the necessary journal entries to record the above transactions from a to f 80,000 680,000
The following transactions pertains to Bahrain Company for 2021: a) Materials purchased on account, $62,500. b) Materials used in production as follows: direct materials, $33,600, indirect materials, $5,400. c) Manufacturing labor incurred $35,000. (90% for direct labor and 10% for indirect labor.) d) Other various manufacturing overhead costs incurred during the year is $18,900. e) Manufacturing overhead is allocated at a budgeted overhead rate 120% of direct labor cost. 1) the actual manufacturing overhead cost incurred at the end of the year was $27,800. The company decided to prorate the under-or-overallocated overhead using ending unadjusted balances of WIP. F.G and COGS before proration method Ending unadjusted balances before proration were as follows: Work-in-Process (WIP) $40,000 Finished Goods (FG) Cost of Goods Sold (GOGS) Required: Prepare the necessary journal entries to record the above transactions from a to f 80,000 680,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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