MANAGERIAL ACCOUNTING-W/ACCESS >C<
22nd Edition
ISBN: 9781307839302
Author: Garrison
Publisher: MCG/CREATE
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 6F15
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were as follows:
Raw materials......................$40,000
Work in process...................$18,000
Finished goods.....................$35,000
The company applies
- Raw materials were purchased on account, $510,000.
- Raw materials used in production, $480,000. All of of the raw materials were used as direct materials.
- The following costs were accrued for employee services: direct labor, $600,000: indirect labor, $150,000: selling and administrative salaries, $240,000.
- Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $367,000.
- Incurred various manufacturing overhead costs (e.g..
depreciation , insurance, and utilities). $500,000. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.- Jobs costing $680,000 to manufacture according to their
job cost sheets were completed during the year. - Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $690,000 to manufacture according to their job cost sheets.
Required
6. What is the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for themost recent month of operations in one of the company’s processing departments:Units in beginning inventory ....................................... 400Units started into production ....................................... 3,000Units in ending inventory ............................................ 300Units transferred to the next department .................... 3,100Materials ConversionPercentage completion of beginning inventory .................... 80% 40%Percentage completion of ending inventory ........................ 70% 60%The cost of beginning inventory according to the company’s costing system was $11,040 of which $8,120was for materials and the remainder was for conversion cost. The costs added during the month amountedto $132,730. The costs per equivalent unit for the month were:Materials ConversionCost per equivalent unit .................................. $25.40…
Consider the following information Vanklomps Machining Inc for the month of March 2023:beginning finished goods inventory .......... $ 76,000beginning work in process inventory ........ $ 39,000direct labour costs ..................................... $ 42,000direct material costs .................................. $ 186,000ending finished goods inventory ............... $ 61,000ending work in process inventory ............. $ 27,000manufacturing overhead costs.................. $ 149,000operating expenses ................................... $ 107,000salary expense ........................................... $ 274,000sales revenue............................................. $ 953,000Requirements:1. Prepare a schedule of the cost of goods manufactured for March.2. Prepare a schedule of cost of goods sold for March.3. Prepare an income statement for March.
Premium Company is a manufacturing firm that uses job-order costing. The company's inventory balanceswere as follows at the beginning and end of the year: Beginning Balance Ending Balance Raw materials ........ P14,000 22,000 Work in process ...... 27,000 9,000 Finished goods ....... 62,000 77,000The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. Atthe beginning of the year, the company estimated that it would work 33,000 machine-hours and incurP231,000 in manufacturing overhead cost. The following transactions were recorded for the year:• Raw materials were purchased, P315,000.• Raw materials were requisitioned for used in production,P307,000 (P281,000 direct and P26,000 indirect).• The following employee costs were incurred: direct labor,P377,000; indirect labor,96,000; and administrativesalaries, P172,000.Selling costs, P147,000.• Factory utility costs, P10,000.
• Depreciation for the year was P127,000 of which P120,000 is related to…
Chapter 3 Solutions
MANAGERIAL ACCOUNTING-W/ACCESS >C<
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Verst Products Co. uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Variable factory overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,000 Fixed factory overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 Selling and administrative expenses . . . . . . . . . . . . . . . . . . . . . . $ 40,000 Units produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 Units sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Selling price per unit . . . . . . . . . . . . . . . . . . .…arrow_forwardJavis Jam Co. uses process costing for its production processes. In December, the Cooking Department reported the following summary of its activities: Units in process—beginning inventory (3/4 materials; 1/2 labor and factory overhead)... 8,000 Units started in process during the period........................................................................... 15,000 23,000 Units transferred to the next department............................................................................. 19,000 Units still in process (1/2 materials; 1/4 labor and factory overhead)................................... 4,000 23,000 Required: 1. Prepare an equivalent production schedule for materials, labor, and factory overhead in the Cooking Department using fifo costing. 2. Prepare an equivalent production schedule for materials, labor, and factory overhead in the Cooking Department using average costingarrow_forwardf. Income statement; cost of goods sold statement; factory overhead analysis. Ou October 1, the accountant of Columbus Company prepared a trial balance from which the following accounts were extracted: $9,800 4,070 Finished Goods (2,800 units).... Work in Process (1,200 units)..... Materials and Supplies........... Buildings.................... 40,700 ................ *********** 48,000 Accumulated Depreciation-Buildings... ****** $ 6,000 Machinery and Equipmen................................. Accumulated Depreciation-Machinery and Equipment........ 96,000 37,500 Office Equipment.......... ..………….….…….. 3,200 Accumulated Depreciation Office Equipment........ Accrued Payroll... 1,000 650arrow_forward
- Black Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead...................... $139,080Estimated machine-hours..................................... 3,800Actual manufacturing overhead ........................... $137,000Actual machine-hours .......................................... 3,780 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. a.The predetermined overhead rate is closest to:b. The applied manufacturing overhead for the year is closest to:c.The overhead for the year was:arrow_forwardMoody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production . . . . . . 100,000 Fixed manufacturing overhead cost . . . . . . . . . . . . . . . . . . . . . . . . $650,000 Variable manufacturing overhead cost per machine-hour . . . . . . . $3.00 Required: 1. Compute the predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was available with respect to this job: Direct materials requisitioned . . . . . . . . . . . . . . . . . . . . . . . . . . . . $450 Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $210 Machine-hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Compute the total manufacturing cost assigned to Job 400. 3. During the year, the company worked a total of…arrow_forwardJob order cost; journal entries; profit analysisSpokane Manufacturing Co. obtained the following informationfrom its records for the month of July: Jobs Completed and Sold230 320 560Direct materials cost . . . . . . . . . . . . . . . . . . $ 25,000 $ 15,000 $ 29,000Direct labor cost ...................... 70,000 60,000 55,000Factory overhead . . . . . ................ 50,000 40,000 63,000Units manufactured . . . . . . . . . . . . . . . . . . . 10,000 5,000 14,000Selling price .......................... 152,000 120,000 175,250Required:1. Prepare, in summary form, the journal entries that wouldhave been made during the month to record the distributionof materials, labor, and overhead costs; the completion of thejobs; and the sale of the jobs.2. Prepare schedules showing the gross profit or loss for Julyfor the following:a. The business as a whole.b. Each job completed and sold.c. Each unit manufactured and sold. (Round to the nearestcent.)arrow_forward
- Rundle Company and Rooney Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year. Actual direct labor cost Estimated direct labor cost. Actual manufacturing overhead cost Estimated manufacturing overhead cost Rundle Company $ 148,000 153,000 Rundle Company Rooney Company 55,600 74,970 Required a. Compute the predetermined overhead rate for each company. b. Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company. c. Compute the amount of overapplied or underapplied manufacturing overhead cost for each company. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the predetermined overhead rate for each company. Note: Round your answers to 2 decimal places. Predetermined Overhead direct labor dollar direct labor dollar Rooney Company $ 173,000 105,000 91,100 90,300arrow_forwardSterling's records show the work in process inventory had a beginning balance of $4,000 and an ending balance of $3,000. The records also showed the following data for the month: Materials used Overhead applied Cost of goods manufactured $1,500 50 7,500 Entry labels available for this problem: Beginning inventory Manufacturing costs incurred Materials available for use Overhead applied Ending inventory Materials used in production Cost of goods manufactured Direct labor Purchases Using the entry labels listed above, complete the following T-account to determine how much direct labor was incurred during the month? PLEASE NOTE: You must enter the entry labels exactly as written above and all entry amounts will be rounded to whole dollar amounts with "$" and commas as needed (i.e. $12,345). If no entry label is needed, please use "None" and if no entry amount is needed, please use "$0" - no quotation marks for either. You are to fill in cells beginning at the top of the T-account with any…arrow_forwardAcitelli corporation, which applies manufacturing overhead on the basis of machine hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead…………….. $357,000 Estimated machine hours………………………. 8,500 Actual manufacturing overhead………………… $358,000 Actual machine hours…………………………… 8,560 The estimates of the manufacturing overhead and of machine hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the yeararrow_forward
- Arden Company reported the following costs and expenses for the most recent month: Direct materials . . . . . . . . . . . . . . . . . . . . . . $80,000Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . $42,000Manufacturing overhead . . . . . . . . . . . . . . . $19,000Selling expenses . . . . . . . . . . . . . . . . . . . . . $22,000Administrative expenses . . . . . . . . . . . . . . . $35,000 1. What is the total amount of product costs?2. What is the total amount of period costs?3. What is the total amount of conversion costs?4. What is the total amount of prime costs?arrow_forwardSterner Company computes its predetermined overhead application rate using direct labor hours as the activity base. Estimated and actual overhead costs and direct labor hours for the year were as follows:Estimated ActualManufacturing overhead costs . . . . . . . . . . . . $126,000 $118,020Direct labor hours . . . . . . . . . . . . . . . . . . . . . . 10,000 9,200Based on this information, manufacturing overhead wasa. underapplied by $2,100.b. underapplied by $3,420.c. overapplied by $3,420.d. overapplied by $5,580.e. none of the above.arrow_forwardOn April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,730 21,340 Work-in-Process Inventory Finished Goods Inventory Work-in-process inventory is made up of three jobs with the following costs: Direct materials Direct labor Job 114 8,700 $2,411 1,800 1,170 Job 115 $2,640 1,560 1,014 Job 116 $3,650 4,300 2,795 Applied overhead During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $29,000. b. Materials requisitioned: Job 114, $16,500; Job 115, $12,200; and Job 116, $5,000. c. Job tickets were collected and summarized: Job 114, 150 hours at $12 per hour; Job 115, 220 hours at $14 per hour; and Job 116, 80 hours at $18 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,415. f. Job 115 was completed and transferred to the finished goods warehouse. g. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
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:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY