Bergo Bay's accouing system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit $ 76,000 Credit Cash Accounts receivable Raw materials inventory Work in process inventory 45,000 27,500 0 15 300
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- 1. Describe when it is appropriate for a company to use a job-order cost system. 2.Calculate the dollar balance in ScaleDown's WIP inventory account as at May 31,2018 3.Calculate the dollar amount related to the playpens in ScaleDown's finished goods inventory as at May 31,2018 4.Explain the paper accounting treatment for over- or underapplied overhead balances when using a job-order cost systemSimpson Manufacturing has the following standard cost sheet for one of its products: Total 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour Direct materials $ 10 Direct labor 50 Variable factory overhead Fixed factory overhead 10 40 Cost per unit $ 110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Units manufactured 376 $ 20,680 Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 1,880 pounds 830 hours 22,410 5,312 15,800 Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Debit (total) Credit (tota1) $ 177,000 142,640 119,690 Account $ 142,640 Work-in-process inventory Finished goods inventory…INFO FOR QUESTIONS IN IMAGE 1. Compute the underapplied or overapplied overhead. [Underapplied OR Overapplied] [$ ] 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. (Note: Enter debits before credits.) Event General Journal Debit Credit 1 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. Record the allocation of the underapplied/overapplied overhead to various accounts. (Note: Enter debits before credits.) Event General Journal Debit Credit 1 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to…
- Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. А. Chi-Lite Inc. Income Statement For the Month Ended June 30 Revenues Gross profit Selling and administrative expenses: Total selling and administrative expenses Income from operations В. Materials inventory: Purchased materials Less: Materials used in production Materials inventory, June 30 Work in process inventory: Materials used in production Direct labor Factory overhead Additions to work in process Less: Transferred to finished goods Work in process inventory, June 30 Finished goods inventory: Transferred to finished goods Less: Cost of goods sold Finished goods inventory, June 30The opening balance in the work in process inventory controlaccount represents the costs of all jobs that _____________ in the previous accounting period.(a) were not completed(b) were completed and sold to customers(c) were completed but not sold(d) were reported on the income statementNew Mode Delay Employee A Employee B Employee C Employee D Employee E Employee F Employee G Order Inventory 150 Employee H 306 Employee 15.7 The following table presents the results of using a CAAT tool to interrogate the XYZ Company's ERP system for expenditure cycle activities. It shows the number of times each employee performed a specific task. Maintain Supplier Master Approve Supplier File (Add, Delete, Edit) Receive Inventory Invoices for Payment Pay Suppliers Via EFT Recon Sign Checks Mail Checks cile Bank Account 5 100 100 100 10 10 10 10 425 150 125 400 25 300 REQUIRED Identify three examples of improper segregation of duties and explain the nature of each problem you find. All Bookmas
- 1 Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs. Job 27 Job 33 Highlands Mal1 $16,575 14,300 4,290 Pine Ridge Estates $ 53,300 26,658 7,995 Materials and equipment Direct labor Overhead (applied) Overhead has been applied at 30 percent of the costs of direct labor. During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow. Job Materials and equipment Direct labor (wages…elearn.squ.edu.om/mod/quiz/at ng services SQU Libraries SQU Portal Attendance En An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead at a company that uses job order costing. The accountant was: Select one: O a. recognizing the completion of production. O b. recognizing actual overhead incurred during the period. O c. recognizing receipt of the factory utilities bill. O d. recording a year-end adjustment for an insignificant amount of underapplied overhead. O e. applying a predetermined overhead amount to production.2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making Department Work in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. Factory Overhead-Making Department Factory Overhead-Packing Department Feethack Credit Debit
- Problem 15-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company’s manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Cash $ 77,000 Accounts receivable 46,000 Raw materials inventory 28,000 Work in process inventory 0 Finished goods inventory 9,000 Prepaid rent 3,000 Accounts payable $ 11,500 Notes payable 14,500 Common stock 30,000 Retained earnings (prior year) 92,000 Sales 189,000 Cost of goods sold 106,000 Factory overhead 28,000 General and administrative expenses 40,000 Totals $ 337,000 $ 337,000 These six…Problem 15-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company’s manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Cash $ 77,000 Accounts receivable 46,000 Raw materials inventory 28,000 Work in process inventory 0 Finished goods inventory 9,000 Prepaid rent 3,000 Accounts payable $ 11,500 Notes payable 14,500 Common stock 30,000 Retained earnings (prior year) 92,000 Sales 189,000 Cost of goods sold 106,000 Factory overhead 28,000 General and administrative expenses 40,000 Totals $ 337,000 $ 337,000 These six…Accounting Question