Proration of Overhead : Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost. To compute: The overhead allocation rate. Given information: Budgeted direct labor cost is $225,000. Budgeted overhead cost is $315,000.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems. Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor. The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department. You are an audit manager in the internal audit…

Provide solution of this all Question please Financial Accounting

Answer 2

Question

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Answer 6

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

Answer 7

Chapter 4, Problem 4.39P

1.

To determine

Proration of Overhead:

Pro-ration approach under this a journal entry is pass to see the overhead cost is under allocated or over allocated. Work in progress, finished goods control and cost of goods sold account are debited and manufacturing overhead allocated and manufacturing overhead control account is credit in case of over allocation of overhead cost.

To compute: The overhead allocation rate.

Given information:

Budgeted direct labor cost is $225,000.

Budgeted overhead cost is $315,000.

Answer 8

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

Answer 9

2.

To determine

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

Answer 10

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

Answer 11

3.

To determine

To compute: The amount of under or over allocated manufacturing overhead.

Answer 12

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

Answer 13

4.a.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

Answer 14

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

Answer 15

4.b.

To determine

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

Answer 16

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Answer 17

5.

To determine

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 21

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...

To compute: The ending balance of work in process and cost of goods sold before any adjustment of under or over allocated manufacturing overhead.

To compute: The amount of under or over allocated manufacturing overhead.

To compute: The ending balance of work in progress and cost of goods sold after adjustment by (a) write off to cost of goods sold method.

To compute: The ending balance of work in progress and cost of goods sold after adjustment by prorated using the overhead allocated in 2014 in the ending balance of cost of goods sold and work in progress control account.

To explain: The method applied by company to dispose the under allocated manufacturing overhead among the above two options.

Want to see the full answer?

Chapter 4 Solutions