Cost Accounting, Student Value Edition (15th Edition)
Cost Accounting, Student Value Edition (15th Edition)
15th Edition
ISBN: 9780133428858
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 4, Problem 4.38P

1.

To determine

Overhead Cost:

The cost of indirect material, labor and other expenses is the overhead cost. This cost is not direct as it is not relate to the cost of production directly. The example of overhead cost is administration cost, selling and distribution cost and other.

To prepare: The journal entries for December 31 payroll.

2.

a

To determine

To compute: The amount of material requisitioned into work in progress (WIP) account.

Given information:

Opening balance of WIP is $6,700.

Closing balance of WIP is $9,000.

Direct manufacturing labor is $4,300.

b.

To determine

To compute: The total amount of direct manufacturing labor recorded in work in progress account.

Given information:

Cost of goods manufactured is $234,000.

The amount of material requisitioned is $11,330.

Overhead cost is 110% of direct manufacturing labor cost.

c.

To determine

To compute: The total amount of manufacturing overhead recorded in work in progress.

Given information:

Direct manufacturing labor is $88,300.

Overhead cost is 110% of direct manufacturing labor.

d.

To determine

To compute: The ending balance of work in process account.

e.

To determine

To compute: The cost of goods sold before adjustment of under or over allocated manufacturing overhead.

3.

To determine

To prepare: The closing journal entry related to manufacturing overhead.

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I need a expert not AI  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)…
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