$46,830 $189,515 $16,487 Direct materials $16,843 $13,541 $19,846 Direct labor $185,961 $64,891 $168,543 Applied manufacturing overhead $89,652 $78,943 $98,462 Ending balance $339,286 $346,890 $303
Q: Flounder Inc. reported the following partial statement of income data for the years ended December…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: Softex and Sanibel Solutions are manufacturers of cotton products. Their abbreviated income…
A: Vertical analysis of income statement :— It is a type of income statement in which all items of…
Q: Megan operates a house
A: A sole proprietorship is an unincorporated company with just one owner, who is responsible for…
Q: Use the information below to answer the two questions that follow. A company prepares its master…
A: Income Statement: It is a part of financial statement of a company in which revenue and expenses are…
Q: 3 A company must decide between scrapping or reworking units that do not pass inspection. The…
A: Relevant cost is the cost that is different between different alternatives. This cost is considered…
Q: Flounder Inc. reported the following partial statement of income data for the years ended December…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash…
A: Cash Budget is a part of budgeting technique. Under this statement cash receipts and cash payments…
Q: Applying and Analyzing Inventory Costing Methods At the beginning of the current period. Chen…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: 1. The following data for the current year ended December 31, 2022, were extracted from the…
A: The income statement is a financial statement that includes revenue earned and expenses incurred…
Q: Marigold Corp. applied FIFO to its inventory and got the following results for its ending inventory.…
A: Inventort Valuation: It implies a process in which the businesses assign monetary value to their…
Q: Assume the following information for a company that produced and sold 10,000 units during its first…
A: Absorption costing allocates both fixed and variable manufacturing costs to each unit of production,…
Q: ABC Company manufactures and sells a single product. The following costs were incurred during the…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: Following is a partially completed balance sheet for Epsico Incorporated at December 31, 2022,…
A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…
Q: Lowry Music manufacturers music books. They use an ABC costing system. The relevant cost information…
A: The overhead rate is a per-unit cost applied to production to allocate indirect costs, helping…
Q: Cumulus Corporation is considering the addition of a new product line. The expected annual revenue…
A: Lets understand the basics.CONTRIBUTION MARGINContribution Margin is Computed by deducting Total…
Q: Miller Company's contribution format income statement for the most recent month is shown below: Per…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual…
A: Face Value of Bonds = $27,900,000Maturity in years = 5Coupon Rate = 5%Interest is paid =…
Q: Recognition of tax benef
A: Deferred tax assets comprise future tax benefits that a firm anticipates obtaining as a result of…
Q: Use the following information for the Quick Study below. (Algo) [The following information applies…
A: A financial indicator of a product, service, or company segment's profitability is called…
Q: The taxable income for Company X is $65,000.00
A: The average tax rate is the tax rate an individual pays when he or she adds all sources of income…
Q: Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's…
A: The revenue and spending variance is the difference between the actual and flexible budget data. The…
Q: Vautall Holdings showed the following information regarding its notes receivable 3 4 Date of Nov…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Company manufactures and sens single product. The following costs were operations: Variable costs…
A: S.NoMarginal CostingAbsorption Costing1As the name suggests itself variable cost is considered in…
Q: O $2,313 $2.238 WAP Industries has the following inventory records in March Price/Unit $5.50 $5.60…
A: LIFO stands for Last in first out. Using LIFO, the new inventory is sold out at first. The older…
Q: Required information [The following information applies to the questions displayed below.] AirPro…
A: Volume variance = ( Actual activity level - Predicted activity level) × Budgeted variable overhead…
Q: Rochester Flour Mills purchased new equipment and made the following expenditures: Purchase price $…
A: Cost of an asset is the amount paid for an asset and for expenses incurred in putting the asset in…
Q: Stockholdes City Section of Balance Sheet The following accounts and their balances appear in the…
A: The shareholder's equity section represents the total amount that belongs to the shareholders. The…
Q: Wildhorse Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…
A: Ending inventory is the entire worth of items or products on hand at the end of a certain accounting…
Q: Question 4 Herasa Manufacturing purchased a new machine on Jan 1, 20X1 that was built to perform one…
A: Depreciation Expense is an expense incurred on the fixed assets of the company. It is charged to…
Q: Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated…
A: Lease accounting is a financial reporting process where a company records and discloses the…
Q: You purchase a new pizza oven for $9,950 which will have a scrap value of $900. Assuming 35%…
A: The depreciation expense is the reduction in the value of fixed assets with the usage and passage of…
Q: Question 1: Sales price variance, sales volume variance, and fixed cost variance Price Sales volume…
A: Sales volume variance refers to the difference between the actual number of units sold and the…
Q: On October 31, the end of the first month of operations, Maryville Equipment Company prepared the…
A: The income statement is prepared using various methods as variable costing and absorption costing.…
Q: The trial balance before adjustment of Oriole Inc. shows the following balances. Accounts Receivable…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: The following is an extract from a cash flow statement prepared by a trainee accountant. Which of…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just…
A: Manufacturing overhead is the indirect costs that are incurred during the manufacturing process,…
Q: Assume a company has two manufacturing departments - Assembly and Fabrication. The company considers…
A: The overhead allocation is a method of allocating indirect costs to the goods produced. It can be…
Q: what is One of the advantages of leasing
A: A lease can be defined as a contract where a party, being the owner (lessor) of an asset (leased…
Q: Concord Ltd. had the following 2023 income statement data: Revenues $107,000 Expenses 1/1/23 In…
A: Cash flow from operating activities is a part of cash flow statement. Under this activity cash…
Q: Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This…
A: Predetermined Overhead Rate: A predetermined rate used to allocate manufacturing overhead costs to…
Q: Nov 4 7 9 11 Purchased $5,100 of merchandise on account from Salem Tire. Terms, 2/15, n/45, FOB…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Depreciation by three methods; partial years Layton Company purchased tool sharpening equipment on…
A: Depreciation is the noncash expense that is valued when the asset is put in use and the value is…
Q: The Prancing Pony utilizes a job-order costing system for accumulating their product costs. They had…
A: The cost of finished goods include the cost of job that is finished but remains unsold at the end of…
Q: mares of stock for land appraised at $52,000. The stock was actively traded on a national stock…
A: When stock was issued for land , the fair value of stock is considered as the value of the land…
Q: St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost…
A: Budget: A budget is an estimation to determine the income that will be earned and expenses that will…
Q: Elizabeth, the manager of Sage Hill, is analyzing the company's MOH costs from last year. Sage Hill…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Co receives May 2017 bank statement showing $7000 on deposit. The Co's books show the account to…
A: The Bank reconciliation statement is prepared to match the bank statement and book balance.
Q: Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: me the following budgeted information for a merchandising company: Budgeted sales (all on credit)…
A: Cash budget is used in forecasting to determine supplier payment, and receipts from customers which…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Rohan Outfitters manufacturers durable work clothes and boots. During the month of June they worked on the following three jobs:
| Job A | Job B | Job C | |
| Beginning balance | $46,830 | $189,515 | $16,487 |
| Direct materials | $16,843 | $13,541 | $19,846 |
| Direct labor | $185,961 | $64,891 | $168,543 |
| Applied manufacturing overhead | $89,652 | $78,943 | $98,462 |
| Ending balance | $339,286 | $346,890 | $303,338 |
The status of each Job at the end of the month is, as follows: Job A remained in process, Job B was completed but unsold, Job C was sold. The manufacturing overhead reported for each job was applied using an ABC allocation method. The actual
Step by step
Solved in 3 steps
- Journal Entries in Job Cost Accounting Process Practice Problem 5: During the month of July, Creative Printers purchased $ 25,000 of materials on account. The company sent direct materials from the storeroom to jobs as follows: $ 9,000 to Job No. 106, and $ 14,000 to Job No. 107. The company also sent indirect materials of $ 1,000 to each job. The company assigned production-related labor costs to jobs (direct labor) and to Overhead as follows: $4,000 to Job No. 106, $ 16,000 to Job No. 107, and indirect labor of $2,000 to Job No. 106. Pass the jourmal entries in the books of Creative printers for material, labour and overheads.Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $254, 610 and total machine hours at 62, 100. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 11, 200 $ 7,700 $ 5,400 $ 24, 300 Direct labor $ 17, 400 $ 5,100 $ 4,900 $ 27,400 Machine hours 1, 300 hours 2,900 hours 900 hours 5, 100 hours Job 101 was completed and sold for $51, 900. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,610. Required: 1. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places.Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $234,840 and total machine hours at 61,800. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 11,900 $ 7,900 $ 5,200 $ 25,000 Direct labor $ 17,300 $ 5,000 $ 5,400 $ 27,700 Machine hours 1,600 hours 2,500 hours 800 hours 4,900 hours Job 101 was completed and sold for $50,800. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $14,020. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the…
- Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $257,070 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 11,600 $ $ 16,900 1,800 hours Job 102 $ 8,700 $ 6,200 2,000 hours Job 103 $ 5,900 $ 4,500 1,100 hours Total $ 26,200 $ 27,600 4,900 hours Job 101 was completed and sold for $50,800. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,690. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and…Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated Its total manufacturing overhead cost at $237,500 and total machine hours at 62,500. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 1011 $ 11,600 $ 18,000 1,700 hours 1. Predetermined Overhead Rate 2. Total Applied Manufacturing Overhead 3. Ending Work in Process Inventory 4. Gross profit Job 102 $ 8,100 $ 5,700 5-a. Balance 5-b. Is it over- or underapplied? 2,700 hours Job 103 $5,500 $ 5,100 Job 101 was completed and sold for $50,400. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $19,800. 1,100 hours Total Required: 1. Calculate the predetermined…Applying Overhead to Jobs, Costing Jobs Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,750 and Job 94 with a beginning balance of $7,300. Jagjit applies overhead at the rate of $8 per direct labor hour. Direct labor wages average $18 per hour. Data on August costs for all jobs are as follows: Job 93 Job 94 Job 95 Job 96 Direct materials $950 $4,500 $3,300 $1,300 Direct labor cost 2,160 5,400 2,610 900 During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process. Required: 1. Calculate the number of direct labor hours that were worked on each job in August. Job 93 DLH Job 94 DLH Job 95 DLH Job 96 DLH 2. Calculate the overhead applied to each job during the month of August. Job 93 $ Job 94 $ Job 95 $ Job 96 $ Feedback 1.…
- On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses joborder costing and applies overhead to each job (dress) at the rate of 40% of direct materials costs. Duringthe month, the jobs used direct materials as shown below. Compute the amount of overhead applied toeach of the three jobs.Job 1 Job 2 Job 3Direct materials used . $5,000 $7,000 $1,500Applying Overhead to Jobs, Costing Jobs Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,750 and Job 94 with a beginning balance of $7,300. Jagjit applies overhead at the rate of $8 per direct labor hour. Direct labor wages average $18 per hour. Data on August costs for all jobs are as follows: Job 93 Job 94 Job 95 Job 96 Direct materials $ 950 $4,500 $3,300 $1,300 Direct labor cost 2,160 5,400 2,610 900 During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process.Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were completed and sold. The following data were gathered: Job 39 Job 40 Job 41 Job 42 Job 43 Balance, April 1 $540 $3,410 $2,980 — — Direct materials 680 530 360 $3,500 $6,950 Direct labor 480 580 470 2,520 3,000 Overhead is applied at the rate of 110% of direct labor cost. Jobs are sold at cost plus 30%. Selling and administrative expenses for April totaled $4,550. (Round all amounts to the nearest dollar.) Required: 1. Prepare job-order cost sheets for each job as of April 30. 2. Calculate the ending balance in Work in Process (as of April 30) and Cost of Goods Sold for April. 3. Construct an income statement for Ensign Landscape Design for the month of April. Refer to the list below for the exact wording of…
- Pro-Craft Company computed the following activity rates to allocate overhead cost for the year. Activity Activity Rate Materials handling $ 59 per materials requisition Quality inspection $ 49 per inspection Utilities $ 6 per machine hour During January, the company produced the following two jobs. Allocate overhead cost to each job using the activity rates. Activity Cost Driver Activity Usage Job A Job B Materials requisitions 4 2 Inspections 7 3 Machine hours 345 245On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 44% of direct materials costs. During the month, the jobs used direct materials as shown below. Compute the amount of overhead applied to each of the three jobs. Direct materials used Job 1 Job 2 Job 3 Overhead Applied Job 1 Job 2 Job 3 $6,000 $8,000 $2,500Applying Overhead to Jobs, Costing Jobs Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,810 and Job 94 with a beginning balance of $7,320. Jagjit applies overhead at the rate of $10 per direct labor hour. Direct labor wages average $16 per hour. Data on August costs for all jobs are as follows: Job 93 Job 94 Job 95 Job 96 Direct materials $1,000 $4,550 $3,310 $1,300 Direct labor cost 1,600 4,800 2,560 800 During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process. Required: 1. Calculate the number of direct labor hours that were worked on each job in August. Job 93 fill in the blank fe4a4a013fdefc1_1 DLH Job 94 fill in the blank fe4a4a013fdefc1_2 DLH Job 95 fill in the blank fe4a4a013fdefc1_3 DLH Job 96 fill in the blank fe4a4a013fdefc1_4 DLH 2.…