EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475950
Author: Datar
Publisher: PEARSON CO
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 4.31E
| Materials Control, beginning balance, January 1, 2017 | $18 |
| Work-in-Process Control, beginning balance, January 1, 2017 | 9 |
| Finished Goods Control, beginning balance, January 1, 2017 | 10 |
| Materials and supplies purchased on credit | 154 |
| Direct materials used | 152 |
| Indirect materials (supplies) issued to various production departments | 19 |
| Direct manufacturing labor | 96 |
| Indirect manufacturing labor incurred by various production departments | 34 |
| 28 | |
| Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) | 13 |
| Manufacturing overhead allocated, 3,000,000 actual machine-hours | ? |
| Cost of goods manufactured | 298 |
| Revenues | 410 |
| Cost of goods sold | 294 |
- 1. Prepare an overview diagram of Donald Transport’s job-costing system.
Required
- 2. Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control?
- 3. Show the
journal entry for disposing of under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold.Post the entry to T-accounts. - 4. How did Donald Transport perform in 2017?
Expert Solution & Answer
Learn your wayIncludes step-by-step video
schedule11:10
Students have asked these similar questions
Job costing, journal entries. Donald Transport assembles prestige manufactured homes. Its job costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $31 per machine-hour in 2017). The following data (in millions) show operation costs for 2017:
EXAMPLE 6 Job costing, journal entries. Donald Transport assembles prestige
manufactured homes. Its job-costing system has two direct-cost categories (direct
materials and direct manufacturing labor) and one indirect-cost pool (manufacturing
overhead allocated at a budgeted $31 per machine-hour in 2017). The following data
(in millions) show operation costs for 2017:
Materials Control, beginning balance, January 1, 2017
Work-in-Process Control, beginning balance, January 1, 2017
Finished Goods Control, beginning balance, January 1, 2017
Materials and supplies purchased on credit
Direct materials used
Indirect materials (supplies) issued to various production departments
Direct manufacturing labor
Indirect manufacturing labor incurred by various production departments
Depreciation on plant and manufacturing equipment
Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as
repairs, utilities, etc., with a corresponding credit to various liability accounts)…
Ceria Cubicles a furniture manufacturer, has two departments, Fabrication and Assembly. This company is using job order costing system for all jobs that need to go through each department. Overhead is applied to jobs based on machine hours in Fabrication and on labour hours in Assembly. In December 2018, corporate management estimated the following production data for 2019 in setting its predetermined overhead rates:
Fabrication AssemblyMachine hours 65,000 21,000Direct labour hours 20,200 220,000Departmental overhead RM800,000 RM880,000
Two jobs completed during 2019 were No. 223 and No. 224. The job order cost sheets showed the following information about these jobs:
No. 223…
Chapter 4 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 4 - Define cost pool, cost tracing, cost allocation,...Ch. 4 - How does a job-costing system differ from a...Ch. 4 - Why might an advertising agency use job costing...Ch. 4 - Describe the seven steps in job costing.Ch. 4 - Give examples of two cost objects in companies...Ch. 4 - Describe three major source documents used in...Ch. 4 - What is the advantage of using computerized source...Ch. 4 - Give two reasons why most organizations use an...Ch. 4 - Distinguish between actual costing and normal...Ch. 4 - Describe two ways in which a house-construction...
Ch. 4 - Comment on the following statement: In a...Ch. 4 - Describe three different debit entries to the...Ch. 4 - Describe three alternative ways to dispose of...Ch. 4 - When might a company use budgeted costs rather...Ch. 4 - Prob. 4.15QCh. 4 - Which of the following does not accurately...Ch. 4 - Sturdy Manufacturing Co. assembled the following...Ch. 4 - For which of the following industries would...Ch. 4 - ABC Company uses job-order costing and has...Ch. 4 - Under Stanford Corporations job costing system,...Ch. 4 - (10 min) Job costing, process costing. In each of...Ch. 4 - Actual costing, normal costing, accounting for...Ch. 4 - Job costing, normal and actual costing. Atkinson...Ch. 4 - Budgeted manufacturing overhead rate, allocated...Ch. 4 - Job costing, accounting for manufacturing...Ch. 4 - Job costing, consulting firm. Frontier Partners, a...Ch. 4 - Time period used to compute indirect cost rates....Ch. 4 - Accounting for manufacturing overhead. Creative...Ch. 4 - Job costing, journal entries. The University of...Ch. 4 - Journal entries, T-accounts, and source documents....Ch. 4 - Job costing, journal entries. Donald Transport...Ch. 4 - Job costing, unit cost, ending work in process....Ch. 4 - Job costing; actual, normal, and variation from...Ch. 4 - Job costing; variation on actual, normal, and...Ch. 4 - Proration of overhead. The Ride-On-Wave Company...Ch. 4 - Job costing, accounting for manufacturing...Ch. 4 - Service industry, job costing, law firm. Kidman ...Ch. 4 - Service industry, job costing, two direct- and two...Ch. 4 - Proration of overhead. (Z. Iqbal, adapted) The Zaf...Ch. 4 - Normal costing, overhead allocation, working...Ch. 4 - Proration of overhead with two indirect cost...Ch. 4 - General ledger relationships, under- and...Ch. 4 - Overview of general ledger relationships. Estevez...Ch. 4 - Allocation and proration of overhead. Resource...Ch. 4 - (2530 min.) Job costing, ethics. Joseph Underwood...Ch. 4 - Job costingservice industry. Market Pulse performs...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E5–26 Journalizing adjusting entries including estimate sales returns
Learning Objective 3, 4
Emerson St. Boo...
Horngren's Accounting (12th Edition)
What are some of the problems with using the CPI?
Construction Accounting And Financial Management (4th Edition)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (4th Edition)
Calculate retained earnings balance. (LO 5). Suppose Hillard Company started the year with a balance of $450,00...
Financial Accounting
Trade Notes Payables. On February 1, Seville Sales, Inc. purchased Inventory costing 450,000 using a 6-month tr...
Intermediate Accounting (2nd Edition)
Record journal entries for the following purchase transactions of Balloon Depot.
Principles of Accounting Volume 1
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
- Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is: a. Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000. b. Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000. c. Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000. d. Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000.arrow_forwardPlease help with parts c & d. Thank youarrow_forwardKeezel Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Keezel for 2017 are as follows: a. Direct manufacturing labor wage rate was $15 per hour. b. Manufacturing overhead was allocated at $20 per direct manufacturing labor-hour. c. During the year, sales revenues were $1,550,000, and marketing and distribution costs were $810,000. Question 1. What was the amount of direct materials issued to production during 2017? 2. What was the amount of manufacturing overhead allocated to jobs during 2017? 3. What was the total cost of jobs completed during 2017? 4. What was the balance of work-in-process inventory on December 31, 2017? 5. What was the cost of goods sold before proration of under- or overallocated overhead? 6. What was the under- or overallocated manufacturing overhead in 2017? 7. Dispose of the under- or overallocated…arrow_forward
- Hamada company uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect- cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). During 2020, Indirect manufacturing labor cost incurred $1,300,000. The journal entry is: а. Manufacturing Overhead Control debit $1,300,000 and Materials Control credit $1,300,000. b. Work-in-Process Control debit $1,300,000 and Wages payable control credit $1,300,000. С. Wages payable control debit $1,300,000 and Manufacturing Overhead Control credit $1,300,000. d. Wages payable control debit $1,300,000 and Work-in-Process Control credit $1,300,000.arrow_forwardArcher Company produces leather jacket for individual and corporation. On September 1st 2016, three jobs are in process, with cost as follows in USD attached on picture below Questions : a. If the allocation base that the company use is direct materials, calculate the budgeted overhead rate b. Calculate the Manufacturing Overhead Cost for each job and the total of MOH allowed c. Calculate the total cost of WIP at the end of September 2016arrow_forwardManufacturing costs for Davenport Company during 2018 were as follows: Direct Labor for 2018 Beginning Finished Goods, 1/1/18 $ 25,700 Beginning Raw Materials, 1/1/18 37,100 Beginning Work in Process, 1/1/18 111,900 $ 276,900 24,000 41,050 122,200 305,800 Ending Finished Goods, 12/31/18 Ending Raw Materials, 12/31/18 Ending Work in Process, 12/31/18 Material Purchases for 2018 (including $23,000 of indirect material) Note: The pre-determined overhead rate is 0.91 (91%) of direct labor cost. Required: 1. Prepare a Cost of Goods Manufactured report. 2. Prepare a Partial Income Statement if sales revenue was $1,410,000 and operating expenses were $290,000 for 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a Cost of Goods Manufactured report. DAVENPORT COMPANY Cost of Goods Manufactured Report For the Year 2018 Direct Materials Used in Production Total Current Manufacturing Costs Cost of Goods Manufacturedarrow_forward
- The centrepiece of a job-costing system is the: A)Job-cost sheet B)Materials requisition form C)Budgeted overhead rate D)Labor time ticket The following data relates to Bermuda Company for the year 2016 Estimated manufacturing overhead cost $240,000 Estimated direct labor cost $300,000 Estimated direct labor hours $ 30,000 Actual manufacturing overhead cost $289,000 Actual direct labor costs $315,000 Actual direct labor hours $ 33,000 Allocation base direct labor hours Manufacturing overhead allocated for 2016 is: A)$450,450 B)$264,000 C)$252,000 D)$220,500arrow_forwardManufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, 1/1/18 $ 25,200 Beginning Raw Materials, 1/1/18 36,600 Beginning Work in Process, 1/1/18 111,400 Direct Labor for 2018 276,400 Ending Finished Goods, 12/31/18 23,500 Ending Raw Materials, 12/31/18 40,800 Ending Work in Process, 12/31/18 121,700 Material Purchases for 2018 305,300 (including $20,500 of indirect material) Required:Only need answers to question 4 and 5 1. Compute direct material used. 2. Compute applied overhead if the company applies overhead at a rate of 0.86 (86%) of direct labor cost. 3. Compute total manufacturing cost. 4. Compute cost of goods manufactured. 5. Compute cost of goods sold.arrow_forwardProducts uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Davey allocates manufacturing overhead costs using direct manufacturing labor costs.Davey provides the following information: Budget for 2017 Actual Results for 2017 Direct material costs 2,050,000 1,975,000 Direct manufacturing labor costs 1,600,000 1,550,000 Manufacturing overhead costs 2,880,000 2,945,000 1. Compute the actual and budgeted manufacturing overhead rates for 2017. 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $50,000 Direct manufacturing labor costs $40,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costing. Why is there no…arrow_forward
- Agassi Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2017, the following estimates were made for the year. D $1,200,000 $1,500,000 Direct materials used Direct labor costs Manufacturing overhead Direct labor costs Direct labor hours Machine hours During January, the job cost sheets showed the following costs and production data. Department E $126,000 $110,000 $124,000 Manufacturing overhead incurred Direct labor hours Machine hours Department E $1,500,000 $1,250,000 100,000 400,000 D $140,000 $120,000 $ 99,000 8,000 34,000 125,000 500,000 K $900,000 $450,000 11,000 45,000 40,000 120,000 K $78,000 $37,500 $79,000 3,500 10,400 Instructions (a)Compute the predetermined overhead rate for each department. (b) Compute the total…arrow_forwardCan I please get some help with this question? Thank youarrow_forwardCost Flows; Applying Overhead Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,980,000 of factory overhead costs and use 66,000machine hours.Erkens Company recorded the following events during the month of April:a. Purchased 180,000 pounds of materials on account; the cost was $5.00 per pound.b. Issued 120,000 pounds of materials to production, of which 15,000 pounds were used as indirectmaterials.c. Incurred direct labor costs of $240,000 and $40,000 of indirect labor costs.d. Recorded depreciation on equipment for the month, $75,700.e. Recorded insurance costs for the manufacturing property, $3,500.f. Paid $8,500 cash for utilities and other miscellaneous items for the manufacturing plant.g. Completed Job H11 costing $7,500 and Job G28 costing $77,000 during the month and transferredthem to the Finished Goods Inventory account.h.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY