Concept explainers
a.
Calculate the
a.
Explanation of Solution
Calculate overhead rate for department A.
Calculate overhead rate for department B.
b.
Calculate the total cost of job no.652, and calculate the unit cost of the product manufactured on this production order.
b.
Explanation of Solution
Calculate the total cost of job no.652, and calculate the unit cost of the product manufactured on this production order as shown below:
Job No. 652 | |||
Particulars | Department A (1) | Department B (2) | Total (1+2) |
Direct materials | $19,000 | $1,750 | $20,750 |
Direct labor | $1,500 | $750 | $2,250 |
Manufacturing overhead | |||
$9,000 | $1,000 | $10,000 | |
Total cost of job no. 399 | $33,000 | ||
Unit cost | $33 |
Table (1)
Working notes:
Calculate manufacturing overhead amount for Department A.
Calculate manufacturing overhead amount for department B.
Calculate unit cost.
c.
Prepare
c.
Explanation of Solution
Prepare journal entry to record sale on account of 1,000 circuit boards.
Account titles and Explanation | Debit | Credit |
$50,000 | ||
Sales | $50,000 | |
(To record credit sales in march) |
Table (2)
- Accounts receivable is a current asset, and it is increased. Therefore, debit accounts receivable account for $50,000.
- Sales is a component of
stockholders’ equity , and it is increased. Therefore, credit sales account for $50,000.
Prepare journal entry to record cost of goods sold.
Account titles and Explanation | Debit | Credit |
Cost of goods sold | $33,000 | |
Finished goods inventory | $33,000 | |
(To record cost of units sold during march) |
Table (3)
Working note:
Calculate cost of goods sold.
- Cost of goods sold is a component of stockholders’ equity, and it is decreased. Therefore, debit cost of goods sold account for $33,000.
- Finished goods inventory is a current asset, and it is decreased. Therefore, credit finished goods inventory account for $33,000.
d.
Calculate over-under applied overhead in each department during the year.
d.
Explanation of Solution
Calculate over-under applied overhead in department A.
Calculate over-under applied overhead in department B.
Want to see more full solutions like this?
Chapter 17 Solutions
Gen Combo Loose Leaf Financial Accounting; Connect Access Card
- A put option written on non-controlling interests is? Accounting Problem: A) Recognized as financial liability at present value B) Recorded as equity C) Disclosed only in notes D) Treated as contingent liability. Answerarrow_forwardGeneral Accountingarrow_forwardI want to correct answer general accounting questionarrow_forward
- Monarch Consultants Corporation obtained a building, its surrounding land, and a computer system in a lump-sum purchase for $375,000. An appraisal set the value of the land at $184,500, the building at $144,000, and the computer system at $121,500. At what amount should Monarch Consultants record each new asset on its books?arrow_forwardPinewood Corporation uses the weighted average method.... Please answer the general accounting questionarrow_forwardCorrect Answerarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education