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Waterway Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes' optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 98,000 direct labor hours. During March, the company worked on the following fve jobs. Direct Materials Direct Labor Direct Labor Hours Beginning added during added during added during Job Balance March March March 134 $118,500 $4,000 $8,200 150 158 121,550 2,500 12,120 310 212 22,000 86,500 36,600 3,470 287 34,200 71,800 31,800 2,770 301 19,030 21,890 1,490 Total $296,250 $183,830 $110,610 8,190 Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March. Your answer is correct. Waterway Company incurred $167,000 manufacturing overhead in the month of March. Given that expenditure for overhead, was manufacturing overhead under- or overapplied in March? By how much? Overhead Underapplied by $ 3200

Waterway Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes' optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 98,000 direct labor hours. During March, the company worked on the following fve jobs. Direct Materials Direct Labor Direct Labor Hours Beginning added during added during added during Job Balance March March March 134 $118,500 $4,000 $8,200 150 158 121,550 2,500 12,120 310 212 22,000 86,500 36,600 3,470 287 34,200 71,800 31,800 2,770 301 19,030 21,890 1,490 Total $296,250 $183,830 $110,610 8,190 Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March. Your answer is correct. Waterway Company incurred $167,000 manufacturing overhead in the month of March. Given that expenditure for overhead, was manufacturing overhead under- or overapplied in March? By how much? Overhead Underapplied by $ 3200

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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Your answer is correct. Assume that Waterway Company closes under- or overapplied overhead to the Cost of Goods Sold account. Calculate the Cost of Goods Sold amount after that adjustment. Adjusted Cost of Goods Sold 351400 eTextbook and Media Your answer is partially correct. Assume that Waterway Company prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round percentage of total and final answers to 2 decimal places, eg. 5,235.75.) Adjusted Allocation Balance $ 1664.32 265584.32 Work In Process $ 121.28 $ 142491.28 Finished Goods 1414.40 $ 349614.40 Cost of Goods Sold 3200 $ 757690 eTextbook and Media %24 %24 %24
Transcribed Image Text:Your answer is correct. Assume that Waterway Company closes under- or overapplied overhead to the Cost of Goods Sold account. Calculate the Cost of Goods Sold amount after that adjustment. Adjusted Cost of Goods Sold 351400 eTextbook and Media Your answer is partially correct. Assume that Waterway Company prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round percentage of total and final answers to 2 decimal places, eg. 5,235.75.) Adjusted Allocation Balance $ 1664.32 265584.32 Work In Process $ 121.28 $ 142491.28 Finished Goods 1414.40 $ 349614.40 Cost of Goods Sold 3200 $ 757690 eTextbook and Media %24 %24 %24
Waterway Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes' optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 98,000 direct labor hours. During March, the company worked on the following five jobs. Direct Materials Direct Labor Direct Labor Hours Beginning added during added during added during Job Balance March March March 134 $118,500 $4,000 $8,200 150 158 121,550 2,500 12,120 310 212 22,000 86,500 36,600 3,470 287 34,200 71,800 31,800 2,770 301 19,030 21,890 1,490 Total $296,250 $183,830 $110,610 8,190 Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March. Your answer is correct. Waterway Company incurred $167,000 manufacturing overhead in the month of March. Given that expenditure for overhead, was manufacturing overhead under- or overapplied in March? By how much? Overhead Underapplied by $ 3200 eTextbook and Media
Transcribed Image Text:Waterway Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes' optics require significant manual labor to ensure adherence to strict manufacturing specifications, the company applies overhead on the basis of direct labor hours. At the beginning of 2021, the company estimated its manufacturing overhead would be $1,960,000 and that employees would work a total of 98,000 direct labor hours. During March, the company worked on the following five jobs. Direct Materials Direct Labor Direct Labor Hours Beginning added during added during added during Job Balance March March March 134 $118,500 $4,000 $8,200 150 158 121,550 2,500 12,120 310 212 22,000 86,500 36,600 3,470 287 34,200 71,800 31,800 2,770 301 19,030 21,890 1,490 Total $296,250 $183,830 $110,610 8,190 Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March. Your answer is correct. Waterway Company incurred $167,000 manufacturing overhead in the month of March. Given that expenditure for overhead, was manufacturing overhead under- or overapplied in March? By how much? Overhead Underapplied by $ 3200 eTextbook and Media
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