Homework Help is Here – Start Your Trial Now!
Business
Accounting
The Harriott manufacturing company uses job order costing system. The company uses mac hours to apply overhead cost to jobs. At the beginning of aoao, the company estimated that machine hours would be worked and ss,04.000 overhead cost would be incumed during aon The following activities took place in the work in process inventory during February: WIP laventory A/C November Bal. b/f Direct Materials Used a56.00 Other transactions incurred: • Indirect material issued to production was sn o • Total manufacturing labour incurred in November was sy6k.oo0, 75% of this represented direct labour. • Other manufacturing overhead costs incurred for November amounted to s0490. • Two jobs were completed with total costs of syl.o0o & sayo,000 respectively. They sold on account at a margin of 3y% on sales.

The Harriott manufacturing company uses job order costing system. The company uses mac hours to apply overhead cost to jobs. At the beginning of aoao, the company estimated that machine hours would be worked and ss,04.000 overhead cost would be incumed during aon The following activities took place in the work in process inventory during February: WIP laventory A/C November Bal. b/f Direct Materials Used a56.00 Other transactions incurred: • Indirect material issued to production was sn o • Total manufacturing labour incurred in November was sy6k.oo0, 75% of this represented direct labour. • Other manufacturing overhead costs incurred for November amounted to s0490. • Two jobs were completed with total costs of syl.o0o & sayo,000 respectively. They sold on account at a margin of 3y% on sales.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Assistance please
The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overthead cost to jobs. At the beginning of ao20, the company estimated that 31.400 machine hours would be worked and s5.024,000 overhead cost would be incurred during a020. The following activities took place in the work in process inventory during February: WIP Inventory A/C November i Bal. b/f $51.a50 Direct Materials Used 256,400 Other transactions incurred: • Indirect material issued to production was s40,36o • Total manufacturing labour incurred in November was sy68,000, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for November amounted to s340.490. Two jobs were completed with total costs of syk4.000 & sa70,000 respectively. They were sold on account at a margin of 33%% on sales. Required: i) Compute Harriott's predetermined manufacturing overhead rate for 2020. i) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in November b) For indirect material issued to production in November e) For total manufacturing labour incurred in November d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred O For manufacturing overhead applied to production for November, given that Harriott manufacturing company worked a,860 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance. iii) iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Harriott on the jobs completed. vi) Determine the balance in work in process inventory on November 30.
Transcribed Image Text:The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overthead cost to jobs. At the beginning of ao20, the company estimated that 31.400 machine hours would be worked and s5.024,000 overhead cost would be incurred during a020. The following activities took place in the work in process inventory during February: WIP Inventory A/C November i Bal. b/f $51.a50 Direct Materials Used 256,400 Other transactions incurred: • Indirect material issued to production was s40,36o • Total manufacturing labour incurred in November was sy68,000, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for November amounted to s340.490. Two jobs were completed with total costs of syk4.000 & sa70,000 respectively. They were sold on account at a margin of 33%% on sales. Required: i) Compute Harriott's predetermined manufacturing overhead rate for 2020. i) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in November b) For indirect material issued to production in November e) For total manufacturing labour incurred in November d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred O For manufacturing overhead applied to production for November, given that Harriott manufacturing company worked a,860 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance. iii) iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Harriott on the jobs completed. vi) Determine the balance in work in process inventory on November 30.
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Services For Financial Planning
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS