Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 13, Problem 2E
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Needam Company has analyzed its production process and identified two primary activities. These activities, their allocation bases, and their estimated costs are listed below. BEE (Click on the icon to view the estimated costs data.) The company manufactures two products: Regular and Super. The products use the following resources in March: BEE (Click on the icon to view the actual data for March.) Read the requirements. Requirement 5. Compute the predetermined overhead allocation rates using activity-based costing. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the all Actual overhead costs Actual qty of the allocation base used Estimated overhead costs Estimated qty of the allocation base Predetermined OH allocation rate Data table Data table Regular Super Number of purchase orders 10 purchase orders Number of parts 600 parts 13 purchase orders 800 parts Activity Purchasing Materials handling - X…
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10. Record the journal entries for Holley Company for August. 11. Post appropriate entries to the Conversion Costs T-account to determine the amount of underallocated or overallocated overhead. Record the adjusting entry. 10. Record the journal entries for Holley Company for August. (Record debits first, then credits. Exclude explanations from journal entries) Journalize the purchase of raw materials. Date 5 a. Accounts Debit Credit Accounts Payable Accounts Receivable Conversion Costs Cost of Goods Sold Finished Goods Inventory Raw and In-Process Inventory Sales Revenue Wages Payable, Accumulated Depreciation, etc. More info a. Purchased raw materials on account, $30,000. b Incurred labor and overhead costs, $65,000. C d. Completed 900 units with standard costs of $75 for direct materials and $180 for conversion costs. Sold on account 600 units for $400 each. Print Done - X

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