Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 4, Problem 5EB
Steinway’s records show their work in process Inventory had a beginning balance of $3,000 and an ending balance of $3,500. How much overhead was applied if the records also show the following:
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Swifty Company had the following department data:
Work in process inventory, beginning
Completed and transferred out
Work in process inventory, ending
Physical Units
0
91000
8000
Materials are added at the beginning of the process. What are the equivalent units of production for materials during the period?
Waterway Manufacturing assigns overhead based on machine hours. Department R records
608 machine hours, while Department W records 392 machine hours for the period. The
overhead rate is $6 per machine hour. What will the entry to assign overhead include? Select
answer from the options below A debit to Manufacturing Overhead for $6000. A credit to
Manufacturing Overhead for $6000. A debit to Work in Process Inventory-Department W for
$2352. A credit to Work in Process Inventory-Department R for $3648.
Kimble Company applies overhead on the basis of machine hours. Given the following
data, compute overhead applied and the under- or overapplication of overhead for
the period:
Estimated annual overhead cost
Actual annual overhead cost
Estimated machine hours
Actual machine hours
$1,560,000 applied and $15,000 overapplied
$1,600,000 applied and $15,000 overapplied
$1,560,000 applied and $15,000 underapplied
$1,575,000 applied and neither under- nor overapplied
● An A
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$1,600,000
$1,575,000
400,000
W
390,000
D
P
&
E
f
Chapter 4 Solutions
Principles of Accounting Volume 2
Ch. 4 - Which of the following product situations is...Ch. 4 - A job order costing system is most likely used by...Ch. 4 - Which of the following is a prime cost? A....Ch. 4 - Which of the following is a conversion cost? raw...Ch. 4 - During production, to what are the costs in job...Ch. 4 - Which document lists the inventory that will be...Ch. 4 - Which document shows the cost of direct materials,...Ch. 4 - Which document lists the total direct materials...Ch. 4 - Which document lists the total direct labor used...Ch. 4 - Assigning indirect costs to specific jobs is...
Ch. 4 - In a job order cost system, which account shows...Ch. 4 - In a job order cost system, raw materials...Ch. 4 - In a job order cost system, overhead applied is...Ch. 4 - In a job order cost system, factory wage expense...Ch. 4 - In a job order cost system, utility expense...Ch. 4 - In a job order cost system, indirect labor...Ch. 4 - The activity base for service industries is most...Ch. 4 - A printing company manufactures notebooks of...Ch. 4 - Burnham Industries incurs these costs for the...Ch. 4 - Chocos Chocolates incurs these costs for the...Ch. 4 - How do job order costing and process costing...Ch. 4 - Why are product costs assigned to the product and...Ch. 4 - Is the cost of goods manufactured the same as the...Ch. 4 - From beginning to end, place these items in the...Ch. 4 - How is the predetermined overhead rate determined?Ch. 4 - How is the predetermined overhead rate applied?Ch. 4 - Why are the overhead costs first accumulated in...Ch. 4 - Why is the manufacturing overhead account debited...Ch. 4 - Match the concept on the left to its correct...Ch. 4 - When compared to manufacturing companies, service...Ch. 4 - Little Things manufactures toys. For each item...Ch. 4 - Table 4.3 shows a list of expenses involved in the...Ch. 4 - Burnham Industries incurs these costs for the...Ch. 4 - Marzons records show raw materials Inventory had a...Ch. 4 - Sterlings records show the work in process...Ch. 4 - Logo Gear purchased $2,250 worth of merchandise...Ch. 4 - A company estimates its manufacturing overhead...Ch. 4 - Job order cost sheets show the following costs...Ch. 4 - A new company started production. Job 10 was...Ch. 4 - K company production was working on Job 1 and Job...Ch. 4 - A company has the following transactions during...Ch. 4 - During the month, Job AB2 used specialized...Ch. 4 - Job 113 was completed at a cost of $5,000, and Job...Ch. 4 - A companys Individual job sheets show these costs:...Ch. 4 - A summary of material requisition slips and time...Ch. 4 - Abuah Goods manufactures clothing. For each item...Ch. 4 - Chocos Chocolates incurs the following costs for...Ch. 4 - The table shows a list of expenses involved in the...Ch. 4 - Masonrys records show the raw materials inventory...Ch. 4 - Steinways records show their work in process...Ch. 4 - Langstons purchased $3,100 of merchandise during...Ch. 4 - A company estimates its manufacturing overhead...Ch. 4 - Job order cost sheets show the following costs...Ch. 4 - A new company started production. Job 1 was...Ch. 4 - Inez has the following information relating to Job...Ch. 4 - A company has the following information relating...Ch. 4 - A company has the following transactions during...Ch. 4 - During the month, Job Arch2 used specialized...Ch. 4 - Job 113 was completed at a cost of $7,500, and Job...Ch. 4 - A companys individual job sheets show these costs:...Ch. 4 - A summary of materials requisition slips and time...Ch. 4 - For each item listed, state whether a job order...Ch. 4 - York Company Is a machine shop that estimated...Ch. 4 - Pocono Cement Forms expects $900,000 in overhead...Ch. 4 - Job cost sheets show the following information:...Ch. 4 - Complete the information in the cost computations...Ch. 4 - During the year, a company purchased raw materials...Ch. 4 - Freeman Furnishings has summarized its data as...Ch. 4 - Coops Stoops estimated its annual overhead to be...Ch. 4 - MountaIn Peaks applies overhead on the basis of...Ch. 4 - The actual overhead for a company is $74,539....Ch. 4 - When setting its predetermined overhead...Ch. 4 - The following data summarize the operations during...Ch. 4 - The following events occurred during March for...Ch. 4 - A movie production studio incurred the following...Ch. 4 - For each item listed, state whether a job order...Ch. 4 - Rulers Company is a neon sign company that...Ch. 4 - Event Forms expects $120,000 in overhead during...Ch. 4 - Summary information from a companys job cost...Ch. 4 - Complete the information in the cost computations...Ch. 4 - During the year, a company purchased raw materials...Ch. 4 - Freeman Furnishings has summarized its data as...Ch. 4 - Queen Bees Honey, Inc., estimated its annual...Ch. 4 - Mountain Tops applies overhead on the basis of...Ch. 4 - The actual overhead for a company is $73,175....Ch. 4 - When setting its predetermined overhead...Ch. 4 - The following data summarize the operations during...Ch. 4 - The Following events occurred during March for...Ch. 4 - A leather repair shop incurred the following...Ch. 4 - Can a company use both job order costing and...Ch. 4 - If a job order cost system tracks the direct...Ch. 4 - What are the similarities in calculating the cost...Ch. 4 - If a company bases its predetermined overhead rate...Ch. 4 - How do the job cost sheets act as a subsidiary...Ch. 4 - How is a job order cost system used in a service...
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- Sterlings records show the work in process Inventory had a beginning balance of $4000 and an ending balance of $3,000. How much direct labor was incurred if the records also show :arrow_forwardAdams Company and Baird Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Adams Company $ 208,600 29,000 $ 20,500 Baird Company $ 298,500 30,000 12,000 Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for eac company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Predetermined overhead rate Required A Required B Compute the predetermined overhead rate for each company. Note: Round your answers to 2 decimal places. Per Direct Labor Hour Adams Company Baird Company Required B >arrow_forwardPrice Company assigns overhead based on machine hours. The Milling Department logs 2,400 machine hours and Cutting Department shows 4,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a A. debit to Manufacturing Overhead for $32,000. B. credit to Work in Process Inventory-Cutting Department for $20,000. C. debit to Work in Process Inventory - Milling Department for $20,000. D. credit to Manufacturing Overhead for $32,000.arrow_forward
- Refer to the previous question. Give the journal entry to adjust the Manufacturing Overhead account for overallocated or underallocated overhead. Reference Question. If a company incurred $5,250 in actual overhead costs and allocated $5,575 to jobs, was the overhead overallocated or underallocated? By how much?arrow_forwardHager Inc. applies overhead based on direct labor cost using a job-order costing system. The company provided you with the following information: Estimated manufacturing overhead Estimated direct labor cost $42,000 $24,000 $45,500 $24,800 Actual manufacturing overhead Actual direct labor cost How much is the underapplied overhead?arrow_forwardExercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead (LO3-1, LO3-2, LO3-4] The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 497,664 (b) 82,944| Work in Process 6,280 (c) 316,000 93,000 414,720 56,000 Finished Goods 34,000 | (d) 774,000 136,000 (а) 414,720 Bal. 774,000 672,000 Bal. (c) Bal. Bal. (b) Bal. Cost of Goods Sold (d) 672,000|| The overhead that had been applied to production during the year is distriputed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending Finished Goods, ending Cost of Goods Sold $ 26,880 65,280 322,560 $ 414,720 Overhead appliedarrow_forward
- Sunland Company has the following data: Direct labor Direct materials used Total manufacturing overhead Ending work in process inventory Beginning work in process inventory (a) Compute total manufacturing costs. Total manufacturing costs $71,440 78,960 61,100 28,200 42,300arrow_forwardSunland Company has the following data: Direct labor Direct materials used Total manufacturing overhead Ending work in process inventory Beginning work in process inventory (a) Compute total manufacturing costs. Total manufacturing costs tA $ $88,160 97,440 75,400 34,800 52,200arrow_forwardThe Work in Process Inventory account had a beginningbalance of $4,200 on February 1. During February, the costof direct materials used was $29,000 and direct labor costassigned to production was $3,000. $3,600 of overhead wasassigned. If the cost of finished goods manufactured was $34,100, compute the balance in the Work in Process Inven-tory account at the end of February. a. $9,900. c. $2,100.b. $1,500. d. $5,700.arrow_forward
- X Company manufactures cakes in two departments: Mixing and Packaging. The company uses a process cost accounting system. All materials are entered at the beginning of each process. During April 2020, the following transactions were completed: Assigned raw materials of $60,000 and $50,000 to Work in Process Mixing and Packaging respectively. Factory labor costs of $20,000 and $40,000 were assigned to Work in Process Mixing and Packaging respectively. The company applied manufacturing overhead on the basis of $15 per machine hour. Machine hours used were 1,000 in Mixing and 2,000 in Packaging. During April, the company transferred units costing S80,000 from Mixing to Packaging. In addition, it trans ferred units costing $160,000 from Packaging to Finished Goods.arrow_forwardWatson Company has the following data: Work in process inventory, beginning Work in process inventory, ending Direct labor costs incurred Cost of goods manufactured Factory overhead Determine the amount of direct materials used. $18,000 25,000 5,000 9,000 7,000arrow_forwardManufacturing cost data for Crane Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct la and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) Work in process 1/1/22 Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Total cost of work in process Work in process 12/31/22 Cost of goods manufactured Case A 38750 60000 (b) 52,000 43,680 151,476 209,560 (a) 199,992 (c) Case B $16,120 $86,320 145,600 231500 (e) (d) 369970 (f) 12,272 357770 (g)arrow_forward
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