COST ACCT-W/ACCESS >C< NON-MAJORS
15th Edition
ISBN: 9781269768191
Author: Horngren
Publisher: PEARSON C
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Question
Chapter 4, Problem 4.37P
1.
To determine
The cost of indirect material, labor and other expenses is the overhead cost. This cost is overhead cost as it is not related to the cost of production directly. The example of overhead cost is administration cost, selling and distribution cost and other costs.
The amount of direct material issued to production.
2.
To determine
The amount of manufacturing overhead allocated to jobs.
Given information:
Direct manufacturing labor cost is $348,000.
Overhead rate is $16.
Labor wage rate is $12.
3.
To determine
To compute: The total cost of completed jobs.
Given information:
The direct material cost is $234,000.
The direct labor cost is $348,000.
The manufacturing overhead cost is $464,000.
4.
To determine
The balance of work in process inventory on December 31, 2014.
Given information:
Opening work in process (WIP) inventory is $44,000.
Total cost of job is $1,046,000.
Finished goods are $925,000.
5.
To determine
The cost of goods sold before proration of under or over allocated overhead.
6.
To determine
To compute: The amount of under or over allocated manufacturing overhead.
Given information:
The actual manufacturing overhead is $514,000.
The manufacturing overhead allocated is $464,000.
7.a
To determine
Dispose off under allocated manufacturing overhead by (a) write off cost of goods sold (b) proration based on ending balance.
8.
To determine
To compute: The net operating income for 2017.
9.
To determine
To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.
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Step
Amount
Category
Inventory
1. Beginning Balance, January 1
28,000
Beginning Balance
Raw Materials
2. (+) Purchases (RM Purchases)
220,000
Addition
Raw Materials
3. (-) Ending Balance
20,000
Ending Balance
Raw Materials
4. = Transferred Out (RM used)
(228,000)
Transferred Out
Raw Materials
5. (+) Direct Labor
(152,000)
Transferred Out
Direct Labor
6. (+) Fixed Overhead
300,000
Addition
Overhead
7. (+) Variable Overhead
-
Addition
Overhead
8. = Total Factory Overhead
(390,000)
Transferred Out
Overhead
9. Beginning Balance, January 1
40,000
Beginning Balance
WIP
10. (+) Additions (RM used)
228,000
Addition
WIP
11. (+) Additions (DL used)
152,000
Addition
WIP
12. (+) Additions (OH used)
390,000
Addition
WIP
13. (-) Ending Balance, December 31
55,000
Ending Balance
WIP
14. = Transferred Out (COGM)
(755,000)…
Chapter 4 Solutions
COST ACCT-W/ACCESS >C< NON-MAJORS
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 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24ECh. 4 - Prob. 4.25ECh. 4 - Prob. 4.26ECh. 4 - Prob. 4.27ECh. 4 - Prob. 4.28ECh. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31PCh. 4 - Prob. 4.32PCh. 4 - Prob. 4.33PCh. 4 - Prob. 4.34PCh. 4 - Prob. 4.35PCh. 4 - Prob. 4.36PCh. 4 - Prob. 4.37PCh. 4 - Prob. 4.38PCh. 4 - Prob. 4.39PCh. 4 - Prob. 4.40PCh. 4 - Prob. 4.41P
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