1. The following information was reported for Gray Enterprises on December 31, 2020.Manufacturing OverheadDebitCredit3,50051,21015,510 37,540 Double line5,340Double line A. What is the actual manufacturing overhead?B. What is the allocated manufacturing overhead?C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.JournalDateDescriptionDebitCreditDec. 31, 20 Dec. 31, 20 2. The following information was reported for Gray Enterprises on December 31, 2021.Manufacturing OverheadDebitCredit2,11056,36015,500 31,830 Double line Double line6,920 A. What is the actual manufacturing overhead?B. What is the allocated manufacturing overhead?C. Is manufacturing overhead underallocated or overallocated? D. Prepare the adjusting entry.JournalDateDescriptionDebitCreditDec. 31, 20 Dec. 31, 20

1)What is the actual manufacturing overhead = $56550 ($3500 + $15510 + $37540)What is…

. The following information was reported for Gray Enterprises on December 31, 2020. Manufacturing Overhead Debit Credit 3,500 51,210 15,510 37,540 Double line5,340 Double line A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead

. The following information was reported for Gray Enterprises on December 31, 2020. Manufacturing Overhead Debit Credit 3,500 51,210 15,510 37,540 Double line5,340 Double line A. What is the actual manufacturing overhead? B. What is the allocated manufacturing overhead? C. Is manufacturing overhead

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 9PB: Mountain Tops applies overhead on the basis of direct labor hours and reports the following...

See similar textbooks

Related questions

Q: On January 2, 2021, Twilight Hospital purchased a $92,000 special radiology scanner from Sandhill…

A: Depreciation is the process of reducing the value of the assets. It is a non-cash expense of the…

Q: Dakota Security Systems (DSS) is a decentralized organization that evaluates divisional management…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: The entry to record a sale on account of merchandise of $300 subject to sales tax of 6% includes a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Zira Company reports the following production budget for the next four months. Each finished unit…

A: Direct material budget :— This budget is prepared to estimate the number of units and cost of direct…

Q: Palmona Company establishes a $180 petty cash fund on January 1. On January 8, the fund shows $85 in…

A: Petty cash is a small amount of cash that is kept on hand and used for these types of expenditures…

Q: Swifty Corporation has the following inventory data: July 1 Beginning inventory 30 units at $15 $450…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Division A $ 12,280,000 $ 3,070,000 $ 601,720 10.00% Division B $35,350,000 $ 7,070,000 $ 600,950…

A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or…

Q: Lime Supplies had a miscount of inventory at $22,000 for the year end May 31, 2022. The correct…

A: The error in ending or beginning inventory leads to impact on cost of goods sold. The cost of goods…

Q: Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: 5. When inventory prices are increasing, which inventory valuation method would give you the lowest…

A: Hi studentSince there are multiple questions asked, we will answer only first question.Inventory…

Q: To better determine profit goals, activity-based cost (ABC) accounting, which tries to identify the…

A: ABC Is used in assigning both costs and overhead

Q: Perdue Company purchased equipment on April 1 for $73,440. The equipment was expected to have a…

A: Depreciation is the non-cash expense charged on the non-current assets. It is reported on the income…

Q: REQUIRED Use the information provided below to calculate the gross profit for the financial year…

A: Gross profit is calculated by deducting the cost of goods sold from the sales revenue earned.It is…

Q: Most Solutions, Incorporated, issued 11% bonds, dated January 1, with a face amount of $400 million…

A: The cash flows are very important to the company. the company raises money by issuing bonds. Bonds…

Q: Suppose that David has elected to account for inventories and has adopted the last-in, first-out…

A: inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: A machine was bought on 3rd October 2015 for $20,000. It was sold for cash for $10,000 on 2nd…

A: Depreciation expense is charged against the cost of long-term physical assets. It is a method of…

Q: Exercise 12-8 (Algo) Cost of Quality [LO12-2] Welton Company measured its quality costs for the past…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 4. rate is 21%. firm b. p... X. You have the following information for firm X. Assume the firm's tax…

A: The four financial statements prepared on the basis of these accounting records are Income…

Q: Vulcan Company’s contribution format income statement for June is as follows: Vulcan Company Income…

A: One of the three main financial statements that show a company's financial performance during a…

Q: Desarials Corporation uses the following activity rates from its activity-based costing to assign…

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: Sonic Corporation purchased and installed electronic payment equipment at its drive-in restaurants…

A: Formula working:

Q: IRC Section 721 provides that, in general, no gain or loss is recognized by the partnership or the…

A: As per sec 721 (a) of IRC no gain or loss shall be recognized by partners as a result of conversion…

Q: Question 28 of 41 View Policies Current Attempt in Progress Oriole Company provides the following…

A: MARKUP PERCENTAGEMarkup is the difference between Selling Price & Total Units Cost. Markup…

Q: Building A: Purchase for a cash price of $614,400, useful life 27 years. Building B: Lease for 27…

A: Net Present Value (NPV) is the difference between the present value of cash inflows and the present…

Q: Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased…

A: Intangible assets must be identifiable, meaning they are separable from the entity or arise from…

Q: Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and…

A: Contribution margin is the amount of money earned by the entity after deducting variable expenses…

Q: Haru is a self-employed cash-method, calendar-year taxpayer who made the following cash payments…

A: $1400 of interest on short term loan As given half of the loan proceeds were…

Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 5,000 shares of…

A: The preference shareholders receive the dividend before dividend to common shareholders. For…

Q: On the last day of its fiscal year ending December 31, 2024, the Safe & Reliable (S&R) Glass Company…

A: Lease liability and bond liability are both obligations that a company has, but they arise from…

Q: Required Information [The following information applies to the questions displayed below] Data for…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Q: Sandhill Co, issued $1,080,000, 9-year bonds. It agreed to make annual deposits of $86,000 to a fund…

A: Sinking fund refers to an amount of fund that should be kept aside for the purpose of paying off the…

Q: Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors.…

A: Production budget :— This budget is prepared to estimate the number of units to be produced for…

Q: Nate and Joe have been friends since grade school and decided to go on a skiing trip to Stowe,…

A: Lets understand the basics.Cost per person calculated by totalling total costs with total…

Q: University has pruchased a new machine for their new proposed labs for $135,000. The unit has an…

A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…

Q: How much invested now at i= 7% would be enough to provide three payments, with the first payment in…

A: Present value refers to the present value of an asset that will be available at some future date…

Q: Calculate the amount of depreciation to report during the year ended December 31 for equipment that…

A: Lets understand the basics.In straight line basis, depreciation gets calculated in equal installment…

Q: Maria Am Corporation uses the weighted-average method in its process costing system. The Baking…

A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production represents the production of a process in…

Q: When an uncollectible account is recovered after it has been written off, he company should record…

A: Under the allowance method company makes provisions for uncollectible accounts at the end of the…

Q: Jillian Incorporated produces leather handbags. The production budget for the next four months is:…

A: Budgeting means estimates or forecasts being made in business. Production budget shows all units to…

Q: ompany adopted the dollar-value LIFO retail method at the beginning of 2024. Information for 2024 a…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: Perrault Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete…

A: Variable cost is the cost that changes with change in activity of cost driver used. The variable…

Q: Wedding Supply is trying to decide whether or not to continue distributing reception supplies. The…

A: The net income is affected with dropping the production of a product. It increases with fixed costs…

Q: Gabriel Enterprises owns a fleet of motor vehicles. The following balances appeared in the general…

A: Depreciation Expense = Written Down Value of Asset x Depreciation rate

Q: Crane Company reports the following for the month of June. Units June 1 Inventory 400 Purchase 550…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a…

A: Bad debt expense :— It is the amount of receivables that is no longer collectible from customers…

Q: Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2024. Information for…

A: This method is used by retailers to estimate the value of their inventory for financial reporting…

Q: Coronado Corporation purchased a depreciable asset for $842100 on January 1, 2023. The estimated…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Required information (The following information applies to the questions displayed below] Jaguar…

A: Balance Sheet is a financial statement that includes assets, liabilities and stockholder's…

Q: Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business…

A: Departmental Costs:The departmental cost is a cost rate determined for every office in an industrial…

Q: Madsen company uses the weighted-average method in its process costing system. During October, the…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

1. The following information was reported for Gray Enterprises on December 31, 2020.

Manufacturing Overhead

Debit	Credit
3,500	51,210
15,510
37,540
Double line5,340	Double line

A. What is the actual manufacturing overhead?	B. What is the allocated manufacturing overhead?	C. Is manufacturing overhead underallocated or overallocated?

D. Prepare the adjusting entry.

Journal

Date	Description	Debit	Credit
Dec. 31, 20
Dec. 31, 20

2. The following information was reported for Gray Enterprises on December 31, 2021.

Manufacturing Overhead

Debit	Credit
2,110	56,360
15,500
31,830
Double line	Double line6,920

A. What is the actual manufacturing overhead?	B. What is the allocated manufacturing overhead?	C. Is manufacturing overhead underallocated or overallocated?

D. Prepare the adjusting entry.

Journal

Date	Description	Debit	Credit
Dec. 31, 20
Dec. 31, 20

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Step 1

VIEW

Step 2: Step 2

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sandar Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours Fixed manufacturing overhead cost Variable manufacturing overhead per computer-hour 90,000 $1,278,000 $5.30 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year ended 31 December 2019: Computer-hours 85,000 Purchase of raw materials $7,890,000 Direct labor cost $1,722,000 Manufacturing overhead costs: Insurance, factory ... $ 88,000 Depreciation of equipment 170,000 Indirect material . Indirect labor . 12,000 327,000 Property taxes 85,000 Maintenance. 630,000 Rent, building…
Recording issuing of materials Materials issued for the current month are as follows a. Determine the amount of materials transferred lo Work in Process and Factory Overhead for the current month. b.Illustrate (he effect on the accounts and financial statements of the materials transferred in (a).:
D. Was manufacturing overhead under- or overapplied during 20XX? By how much?E. Present the necessary journal entry to handle under- or overapplied manufacturingoverhead at year-end.
Requirements 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account.
The journal entry to write-off a significant underapplied overhead balance at the end of an accounting period is: A. Applied Manufacturing Overhead xxx Cost of Goods Sold xxx Manufacturing Overhead Control xxx B. Applied Manufacturing Overhead xxx Cost of Goods Sold xxx Manufacturing Overhead Control xxx C. Applied Manufacturing Overhead xxx Work-In-Process Inventory xxx Finished Goods Inventory xxx Cost of Goods Sold xxx Manufacturing Overhead Control xxx D. Applied Manufacturing Overhead xxx Work-In-Process Inventory xxx Finished Goods Inventory xxx Cost of Goods Sold xxx Manufacturing Overhead Control xxx Option A Option B Option C Option D
E COST ACCOUNTING AND CONT x + To * pook i forms.office.com/Pages/ResponsePage.aspx?id=cYWpTercOUIPsQvdXclp-WXyu19p0dpljDbGCXgjKqpUMKISRjcOSUUyWkgwUERKSzczT0tETUhGQi4u&fbclid. ☆ 49 Determine the costs of jobs completed in January. January 1, there were two jobs in process at the Fortune Manufacturing Company. Details of the jobs are: Job No. Direct Materials Direct Labor A-9 A-10 P 34,800 6,400 P12,800 16,800 Materials inventory at January 1 totaled P 184,000 and P 23,200 in materials were purchased during the month. A requisition for P16,00 in supplies was filled. On January 1, finished goods inventory consisted of two Jobs: Job No. A-7 costing P78,400 and Job No. 8 with a cost of P31,600. Both these Jobs were sold during the month. Also during January, Job Nos. A-9 and A-10 were completed. Completing Job No, A-9 required additional P13,600 in direct labor and P6,000 in direct materials. The completion costs for Job No. A-10 included P21,600 in direct materials and P 40,000 in direct…
Find: 1. Total Manufacturing Cost during the current year2. Cost of goods Manufactured during the current year 3. Over or Under applied Overhead
The following account balances and other information were taken from the accounting records of Langga Corporation for the year ended Dec. 31, 2019. Use the information to prepare a schedule of manufacturing overhead costs, a manufacturing statement (show only the total overhead cost), and a statement of comprehensive income. Advertising Expense Amortization of Patents Uncollectible Accounts Expense P 85,000 16,000 28,000 37,000 133,000 78,000 250,000 62,000 74,000 21,000 Depreciation Expense-Office Equipment Depreciation Expense-Factory Building Depreciation Expense-Factory Equipment Direct Labor Factory Insurance Expense Factory Supervision Factory Supplies Expense Factory Utilities Finished Goods Inventory, Dec. 31, 2018 Finished Goods Inventory, Dec. 31, 2019 Work in Process Inventory, Dec. 31, 2018 Work in Process Inventory, Dec. 31, 2019 Indirect Labor 115,000 15,000 12,500 8,000 9,000 26,000 25,000 55,000 14,000 60,000 78,000 313,000 Interest Expense Miscellaneous Expenses…
The T-account showing the manufacturing overhead activity for Kenneth Corp. for 2018 is as follows: Manufacturing Overhead 210,000 196,000 Read the requirements. Requirement 1. What is the actual manufacturing overhead? Actual manufacturing overhead: S Requirement 2. What is the allocated manufacturing overhead? Allocated manufacturing overhead: S Requirement 3. Is manufacturing overhead underallocated or overallocated? By how much? Manufacturing overhead is by $
6.Disposition of Over- or Underapplied Overhead. The following information is available concerning theinventory and cost of goods sold accounts of PGA Company at the end of the most recent year:Work in Finished Cost of GoodsProcess Goods SoldDirect material .............................................................................. $ 5,000 $ 8,000 $ 11,000Direct labor ................................................................................... 6,000 15,000 15,000Applied overhead ......................................................................... 4,000 12,000 24,000Year-end balance.......................................................................... $ 15,000 $ 35,000 $ 50,000Applied overhead has already been closed to Factory Overhead Control.Required:Give the journal entry required to close Factory Overhead Control, assuming:(1) Overapplied overhead of $10,000 is to be allocated to inventories and Cost of Goods Sold in proportionto the balances in those…
Comparing actual to allocated overhead Columbus Enterprises reports the following information at December 31, 2018: Requirements What is the actual manufacturing overhead of Columbus Enterprises? What is the allocated manufacturing overhead?
For each of the following independent cases A-D, compute the missing values: (Enter all amounts as positive v Total Current Beginning Work Ending Work in in Process Inventory Cost of Goods Case Manufacturing Costs Process Inventory Manufactured A. 2$ 5,200 $ 1,700 $ 700 B 1,700 1,420 2,610 C 580 1,590 7,310 D 8,850 1,050 6,775