Work in Progress inventory means the stock which is still in the process of production. Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale. Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market. Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account. Requirement-1: To prepare: Necessary Journal Entry to record actual or applied manufacturing overhead.

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Answer 1

Question

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

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Students have asked these similar questions

Please explain this financial accounting problem with accurate financial standards.

Silverton Manufacturing's variable overhead is applied on the basis of machine-hours. The standard cost card for product P27K specifies 3.8 machine-hours per unit of P27K. The standard variable overhead rate is $9.40 per machine-hour. During the most recent month, 2,300 units of product P27K were made and 8,510 machine-hours were used. The actual variable overhead incurred was $82,547. Required: A. What was the variable overhead rate variance for the month? B. What was the variable overhead efficiency variance for the month?

Walnut Corporation produces a product that sells for $78.00. Fixed costs are $325,000, and variable costs are $32.00 per unit. Walnut can buy a new production machine that will increase fixed costs by $18,500 per year but will decrease variable costs by $5.50 per unit. Compute the contribution margin per unit if the machine is purchased. a) $46.00 b) $48.50 c) $51.50 d) $52.00 e) $54.00

Answer 2

Question

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

Answer 6

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

Answer 7

Chapter 2, Problem 8E

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production.

Finished Goods inventory means those goods on which the work of production is completed, and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods, but the actual manufacturing overhead are different from the applied manufacturing overhead. So, the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-1:

To prepare:

Necessary Journal Entry to record actual or applied manufacturing overhead.

Answer 8

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

Answer 9

To determine

Concept introduction:

Work in Progress inventory means the stock which is still in the process of production the work on these goods still not completed.

Finished Goods inventory means those goods on which the work of production is completed and they are available for sale.

Cost of goods sold means calculate the amount of cost on that inventory which is sold in the market.

Manufacturing overhead are applied to the process of production on the basis of various methods but the actual manufacturing overhead are different from the applied manufacturing overhead. So the difference between actual and applied is transferred to the cost of goods sold account.

Requirement-2:

To prepare:

Pass journal of transfer of overhead balance to cost of goods sold account.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 2 - What is the difference between job order and...Ch. 2 - What types of companies are likely to use job...Ch. 2 - What types companies are likely to use process...Ch. 2 - Many service industries use job order costing to...Ch. 2 - Prob. 5Q Ch. 2 - Prob. 6Q Ch. 2 - Prob. 7Q Ch. 2 - Prob. 8Q Ch. 2 - Prob. 9Q Ch. 2 - Prob. 10Q

Solution Summary: The author explains that the difference between actual and applied manufacturing overhead is transferred to the cost of goods sold account.

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Chapter 2 Solutions