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The Row-On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) Overhead allocation rate. Data table = HIIR - X Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. Data table Account Work in process Finished goods Cost of goods sold Requirements $ Ending balance 50,700 $ 245,050 549,250 2020 direct manufacturing labor cost in ending balance. - X 15,680 62,720 145,600

The Row-On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) Overhead allocation rate. Data table = HIIR - X Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. Data table Account Work in process Finished goods Cost of goods sold Requirements $ Ending balance 50,700 $ 245,050 549,250 2020 direct manufacturing labor cost in ending balance. - X 15,680 62,720 145,600

FINANCIAL ACCOUNTING
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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The Row - On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) Overhead allocation rate Data table Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost Print Done $ $ $ $ 135,000 225,000 137,400 224,000 = - Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. Data table Account Work in process Finished goods Cost of goods sold Requirements $ Ending balance 50,700 $ 245,050 549,250 2020 direct manufacturing labor cost in ending balance - X 1. Calculate the manufacturing overhead allocation rate. 2. Compute the amount of under- or overallocated manufacturing overhead. 3. Calculate the ending balances in work in process, finished goods, and cost of goods sold if under- or overallocated manufacturing overhead is as follows: a. Written off to cost of goods sold b. Prorated based on ending balances (before proration) in each of the three accounts c. 4. Which method would you choose? Justify your answer. Prorated based on the overhead allocated in 2020 in the ending balances (before proration) in each of the three accounts 15,680 62,720 145,600 - X
Transcribed Image Text:The Row - On-Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) Overhead allocation rate Data table Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost Print Done $ $ $ $ 135,000 225,000 137,400 224,000 = - Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. Data table Account Work in process Finished goods Cost of goods sold Requirements $ Ending balance 50,700 $ 245,050 549,250 2020 direct manufacturing labor cost in ending balance - X 1. Calculate the manufacturing overhead allocation rate. 2. Compute the amount of under- or overallocated manufacturing overhead. 3. Calculate the ending balances in work in process, finished goods, and cost of goods sold if under- or overallocated manufacturing overhead is as follows: a. Written off to cost of goods sold b. Prorated based on ending balances (before proration) in each of the three accounts c. 4. Which method would you choose? Justify your answer. Prorated based on the overhead allocated in 2020 in the ending balances (before proration) in each of the three accounts 15,680 62,720 145,600 - X
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