MANAGERIAL ACCOUNTING LL/W ACCESS
17th Edition
ISBN: 9781265537883
Author: Garrison
Publisher: MCG
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Chapter 3, Problem 4E
EXERCISE 3-4 Underapplied and Overapplied
Osborn Manufacturing uses a predetermined overhead rate of $ 18.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $218;400 of total manufacturing overhead for an estimated activity level of 12:000 direct labor-hours.
The company actually incurred $215:000 of manufacturing overhead and 11,500 direct labor-hours during the period.
Required:
- Determine the amount of underappEed or overapplied manufacturing overhead for the period.
- 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
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E3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method)
[LO 3-2]
Vista Vacuum Company has the following production Information for the month of March. All materials are added at the beginning of
the manufacturing process.
Units
.
•
Beginning Inventory of 3,500 units that are 100 percent complete for materials and 28 percent complete for conversion.
14,600 units started during the period.
Ending Inventory of 4,200 units that are 14 percent complete for conversion.
Manufacturing Costs
Beginning Inventory was $20,500 ($10,100 materials and $10,400 conversion costs).
Costs added during the month were $28,400 for materials and $51,500 for conversion ($26.700 labor and $24,800 applied
overhead).
Assume the company uses Weighted-Average Method.
Required:
1. Calculate the number of equivalent units of production for materials and conversion for March.
2. Calculate the cost per equivalent unit for materials and conversion for March.
3. Determine the…
None
Chapter 3 Solutions
MANAGERIAL ACCOUNTING LL/W ACCESS
Ch. 3.A - EXERCISE 3A-1 Transaction Analysis LO3-5 Carmen...Ch. 3.A - EXERCISE 3A-2 Transaction Analysis LO3-5 Adams...Ch. 3.A - EXERCISE 3A-3 Transaction Analysis LO3-5 Dixon...Ch. 3.A - PROBLEM 3A-4 Transaction Analysis LO3-5 Morrison...Ch. 3.A - PROBLEM 3A-5 Transaction Analysis LO3-5 Star...Ch. 3.A -
PROBLEM 3A-6 Transaction Analysis LO3-5
Brooks...Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - What is underapplied overhead Overapplied...Ch. 3 - 3-4 Provide two reasons why overhead might be...
Ch. 3 - Prob. 5QCh. 3 - How do you compute the raw materials used in...Ch. 3 - Prob. 7QCh. 3 - How do you compute the cost of goods manufactured?Ch. 3 - Prob. 9QCh. 3 - Prob. 10QCh. 3 - Prob. 1AECh. 3 - Prob. 2AECh. 3 - Prob. 3AECh. 3 - Prob. 4AECh. 3 - Prob. 1F15Ch. 3 - Prob. 2F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 4F15Ch. 3 - Prob. 5F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 7F15Ch. 3 - Prob. 8F15Ch. 3 - Prob. 9F15Ch. 3 - Prob. 10F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 12F15Ch. 3 - Prob. 13F15Ch. 3 - Prob. 14F15Ch. 3 - Prob. 15F15Ch. 3 - EXERCISE 3-1 Prepare Journal Entries LO3-1 Lamed...Ch. 3 - Prob. 2ECh. 3 - EXERCISE 3-3 Schedules of Cost of Goods...Ch. 3 - EXERCISE 3-4 Underapplied and Overapplied Overhead...Ch. 3 - Prob. 5ECh. 3 - EXERCISE 3-6 Schedules of Cost of Goods...Ch. 3 - (
$
15,000...Ch. 3 - EXERCISE 3-8 Applying Overhead: Journal Entries;...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 -
PROBLEM 3-11: T-Account Analysis of Cost Flows...Ch. 3 - Prob. 12PCh. 3 - PROBLEM 3-13 Schedules of Cost of Goods...Ch. 3 - Prob. 14PCh. 3 -
PROBLEM 3-15 Journal Entries; T-Accounts;...Ch. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18C
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