The following transactions pertains to Bahrain Company for 2021:a) Materials purchased on account, $62,500.b) Materials used in production as follows: direct materials, $33,600, indirect materials, $5,400.c) Manufacturing labor incurred $35,000. (90% for direct labor and 10% for indirect labor.)d) Other various manufacturing overhead costs incurred during the year is $18,900.e) Manufacturing overhead is allocated at a budgeted overhead rate 120% of direct labor cost.f) the actual manufacturing overhead cost incurred at the end of the year was $27,800. The company decided to prorate the under-or-overallocated overheadusing ending unadjusted balances of WIP. F.G and COGS before proration methodEnding unadjusted balances before proration were as follows:$ 40,00080,000680,000Work-in-Process (WIP)Finished Goods (FG)Cost of Goods Sold (GOGS)Required: Prepare the necessary journal entries to record the above transactions from a to fAnswer:

The direct costs incurred are debited to work in process account. The indirect costs are debited to…

The following transactions pertains to Bahrain Company for 2021: a) Materials purchased on account, $62,500. b) Materials used in production as follows: direct materials, $33,600, indirect materials, $5,400. c) Manufacturing labor incurred $35,000. (90% for direct labor and 10% for indirect labor.) d) Other various manufacturing overhead costs incurred during the year is $18,900. e) Manufacturing overhead is allocated at a budgeted overhead rate 120% of direct labor cost. 1) the actual manufacturing overhead cost incurred at the end of the year was $27,800. The company decided to prorate the under-or-overallocated overhead using ending unadjusted balances of WIP. F.G and COGS before proration method Ending unadjusted balances before proration were as follows: Work-in-Process (WIP) $40,000 Finished Goods (FG) Cost of Goods Sold (GOGS) Required: Prepare the necessary journal entries to record the above transactions from a to f 80,000 680,000

The following transactions pertains to Bahrain Company for 2021: a) Materials purchased on account, $62,500. b) Materials used in production as follows: direct materials, $33,600, indirect materials, $5,400. c) Manufacturing labor incurred $35,000. (90% for direct labor and 10% for indirect labor.) d) Other various manufacturing overhead costs incurred during the year is $18,900. e) Manufacturing overhead is allocated at a budgeted overhead rate 120% of direct labor cost. 1) the actual manufacturing overhead cost incurred at the end of the year was $27,800. The company decided to prorate the under-or-overallocated overhead using ending unadjusted balances of WIP. F.G and COGS before proration method Ending unadjusted balances before proration were as follows: Work-in-Process (WIP) $40,000 Finished Goods (FG) Cost of Goods Sold (GOGS) Required: Prepare the necessary journal entries to record the above transactions from a to f 80,000 680,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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ABC company had the following transactions and events đuring the year ended 31 March 2022. The company uses direct lahor dollars as the allocation base. For the current yeur, the estimated overhead was $777,000 and estimated direct labor cost was $350,000. Actual costs incurred follows: a. Purchased raw materials on account, $567,000. b. 10% of raw materials purchased was requisitioned as indirect materials. c. Direct labor for production is $320,000, indirect labor is $125,000. d. Some costs for the company and their percentage for factory are shown below, with the remaining percentage for administration costs. Other costs for Total $ Percentage spent in factory the company Property tax 100,000 90% Utilities 90,000 89% Depreciation 150,000 75% Insurance 180,000 80% | Cleaning service fee 85,000 70% |Maintenance fee 50,000 90% The bulances of inventory follow: Beginning Ending Raw materials $8,000 $25,010 Work-in-process Finished goods 7,500 572,650 25,010 487,810 Required: d) Prepare…
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