Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 17, Problem 1R
Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following
The overhead application rates are $4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2.
Nutt had no beginning work in process for August. Job 8958, which cost $14,190.18 to manufacture, was completed in July and was sold on account in August for $19,000. The
As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.
Expert Solution & Answer
To determine
Prepare job cost sheets for each of the four jobs started in the month of August.
Explanation of Solution
Prepare job cost sheets for Job 8961.
Table (1)
Prepare job cost sheets for Job 8962.
Table (2)
Prepare job cost sheets for Job 8963.
Table (3)
Prepare job cost sheets for Job 8964.
Table (4)
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Students have asked these similar questions
Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $5,412,800, and the practical level of activity is 398,000 machine hours.
During the year, Craig used 404,000 machine hours and incurred actual overhead costs of $5,411,400. Craig also had the following balances of applied overhead in its accounts:
Work-in-process inventory
$
621,090
Finished goods inventory
627,270
Cost of goods sold
1,841,640
Required:
Question Content Area
1. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cent.
$fill in the blank 2450b2fed067063_1 per machine hour
2. Compute the overhead variance, and label it as under- or overapplied.$fill in the blank 2450b2fed067063_2
Question Content Area
3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of…
Osborn Manufacturing uses a predetermined overhead rate of $19.70 per direct labor-hour. This predetermined rate was based on a
cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours.
The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period.
Required:
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to
dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much?
1. Manufacturing overhead
2. The gross margin would
underapplied
decrease
by
by
Osborn Manufacturing uses a predetermined overhead rate of $18.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $221,430 of total manufacturing overhead for an estimated activity level of 12,100 direct labor-hours.
The company actually incurred $217,000 of manufacturing overhead and 11,600 direct labor-hours during the period.
Required:
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company’s gross margin? By how much?
Chapter 17 Solutions
Excel Applications for Accounting Principles
Ch. 17 - Nutt Products manufactures screws and bolts made...Ch. 17 - Prob. 2RCh. 17 - Now that your worksheet has been saved as JOB2,...Ch. 17 - Next, open worksheet JOB2 again. Enter the data...Ch. 17 - Use the space provided below to prepare six...Ch. 17 - Nutts management is very concerned about the cost...
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