Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 16, Problem 4PA
Analyzing
Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:
In addition, the following information is available:
- A. Materials and direct labor were applied to six jobs in June:
- B. Factory
overhead is applied to each job at a rate of 140% of direct labor cost. - C. The June 1 Work in Process balance consisted of two jobs, as follows:
- D. Customer jobs completed and units sold in June were as follows:
Instructions
- 1. Determine the missing amounts associated with each letter. Provide supporting computations by completing a table with the following headings:
- 2. Determine the June 30 balances for each of the inventory accounts and factory overhead.
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Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
Additional Information
MARCO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Total manufacturing costs
Total cost of work in process
Job 306
Cost of goods manufactured
$ 35,800
26,800
16,800
$
152,000
91,800
?
Finished
(sold)
a. Raw Materials Inventory has a March 31 balance of $86,800.
b. Raw materials purchases in April are $517,000, and total factory payroll cost in April is $380,000.
c. Actual overhead costs incurred in April are indirect materials, $54,250; indirect labor, $27,250; factory rent, $36,250;
factory utilities, $23,250; and factory equipment depreciation, $55,250.
d. Predetermined…
Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance
The chief cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $3,000,000 and total direct labor costs would be $2,400,000. During May, the actual direct labor cost totaled $198,400 and factory overhead cost incurred totaled $253,200.
a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.
Identify the activity base for this company. Remember to enter the number as a whole percent not in decimals.
b. Journalize the entry to apply factory overhead to production for May.
Work in Process-Blending Department
Factory Overhead-Blending Department
Feedback
Recall how the predetermined factory overhead is applied to departments. How does the…
Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
Additional Information
Problem 15-2A (Algo) Part 4
MARCO COMPANY
Schedule of Cost of Goods Manufactured
For Month Ended April 30
Total manufacturing costs
Job 306
Total cost of work in process
$ 33,800
24,800
14,800
Cost of goods manufactured
147,000
89,800
?
Finished
(sold)
$
a. Raw Materials Inventory has a March 31 balance of $84,800.
b. Raw materials purchases in April are $512,000, and total factory payroll cost in April is $375,000.
c. Actual overhead costs incurred in April are indirect materials, $53,000; indirect labor, $26,000; factory rent,
$35,000; factory utilities, $22,000; and factory equipment depreciation, $54,000.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for…
Chapter 16 Solutions
Financial And Managerial Accounting
Ch. 16 - A. Name two principal types of cost accounting...Ch. 16 - What kind of firm would use a job order cost...Ch. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - What is a job cost sheet?Ch. 16 - Prob. 6DQCh. 16 - Discuss how the predetermined factory overhead...Ch. 16 - A. How is a predetermined factory overhead rate...Ch. 16 - A. What is (1) overapplied factory overhead and...Ch. 16 - Describe how a job order cost system can be used...
Ch. 16 - Issuance of materials On May 7, Bergan Company...Ch. 16 - Direct labor costs During May, Bergan Company...Ch. 16 - Factory overhead costs During May, Bergan Company...Ch. 16 - Applying factory overhead Bergan Company estimates...Ch. 16 - Job costs At the end of May, Bergan Company had...Ch. 16 - Cost of goods sold Pine Creek Company completed...Ch. 16 - Transactions in a job order cost system Five...Ch. 16 - The following information is available for the...Ch. 16 - Cost of materials issuances under the FIFO method...Ch. 16 - Prob. 4ECh. 16 - Kingsford Furnishings Company manufactures...Ch. 16 - A summary of the time tickets is as follows:...Ch. 16 - Entry for factory labor costs The weekly time...Ch. 16 - Schumacher Industries Inc. manufactures...Ch. 16 - Eclipse Solar Company operates two factories. The...Ch. 16 - Exotic Engine Shop uses a job order cost system to...Ch. 16 - Predetermined factory overhead rate Obj. 2...Ch. 16 - The following account appears in the ledger prior...Ch. 16 - Collegiate Publishing Inc. began printing...Ch. 16 - The following events took place for Rushmore...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Barnes Company uses a job order cost system. The...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job cost sheet Remnant Carpet Company sells and...Ch. 16 - Analyzing manufacturing cost accounts Fire Rock...Ch. 16 - Prob. 5PACh. 16 - Entries for costs in a job order cost system Royal...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job cost sheet Stretch and Trim Carpet Company...Ch. 16 - Analyzing manufacturing cost accounts Clapton...Ch. 16 - Prob. 5PBCh. 16 - Antolini Enterprises produces mens sports coats...Ch. 16 - Alvarez Manufacturing Inc. is a job shop. The...Ch. 16 - Raneri Trophies Inc. uses a job order cost system...Ch. 16 - Brady Furniture Company manufactures wooden oak...Ch. 16 - Ethics in Action TAC Industries Inc. sells heavy...Ch. 16 - Team Activity As an assistant cost accountant for...Ch. 16 - Prob. 3TIFCh. 16 - RIRA Company makes attachments such as backhoes...Ch. 16 - Todd Lay just began working as a cost accountant...Ch. 16 - Baldwin Printing Company uses a job order cost...Ch. 16 - John Sheng, a cost accountant at Starlet Company,...Ch. 16 - Lucy Sportswear manufactures a specialty line of...Ch. 16 - Patterson Corporation expects to incur 70,000 of...
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