The overhead allocated amount in fabrication department and in finishing department. Given information: For fabrication department (May, 2014), Manufacturing overhead rate is $12 per machine hour. Machine hour is 3,200. For finishing department (May, 2014), Manufacturing overhead rate is $20 per direct manufacturing labor hour. Labor hour is 1,800.

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Answer 1

Question

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

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I need help with this financial accounting problem using proper accounting guidelines.

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You have been asked to test the effectiveness of Ingo Corporation’s control of manually approving all purchases over $25,000. During the year, Ingo Corporation has made 1,000,000 purchases, of which 3,000 were over $25,000. Jian Zhang, CPA, your supervisor, asked you to use a tolerable deviation rate of 4 percent (although she expects the rate to be only approximately 0.50 percent) and a 5 percent risk of assessing control risk too low. Use the following to determine the planned assessed level of control risk and the assessed level of control risk. (Planned) Assessed Level of Control Risk Tolerable Deviation Rate Low 2−7% Moderate 6−12% Slightly below the maximum 11−20% Maximum Over 20% Expected Population Deviation Rate (as Percentages) Tolerable Deviation Rate 2% 3% 4% 5% 6% 7% 8% 9% 10% 15% 20% 0.00% 149(0) 99(0) 74(0) 59(0) 49(0) 42(0) 36(0) 32(0) 29(0) 19(0) 14(0) 0.25 236(1) 157(1) 117(1) 93(1) 78(1) 66(1) 58(1) 51(1) 46(1) 30(1) 22(1) 0.50 * 157(1)…

Answer 2

Question

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

Answer 6

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

Answer 7

Chapter 4, Problem 4.36P

1.

To determine

To compute: The overhead allocated amount in fabrication department and in finishing department.

Given information:

For fabrication department (May, 2014),

Manufacturing overhead rate is $12 per machine hour.

Machine hour is 3,200.

For finishing department (May, 2014),

Manufacturing overhead rate is $20 per direct manufacturing labor hour.

Labor hour is 1,800.

Answer 8

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

Answer 9

2.

To determine

To compute: The amount of under or over allocated overhead in each department.

Answer 10

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

Answer 11

3.

To determine

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

Answer 12

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

Answer 13

4.

To determine

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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To compute: The amount of under or over allocated overhead in each department.

The allocation off under allocated overhead to work in progress, finished goods and cost of goods sold based on ending balance proration also compute the ending balance.

To identify: The effect of written off under or over allocated to cost of goods sold and is the company is able to change to this method.

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Chapter 4 Solutions