FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- BettaFish Inc. applies factory overhead as follows: * Department Per Machine Hour Fabricating Spreading Packaging PI0 P20 P30 Actual machine hours are: Fabricating- 2,000 hours Spreading - 1,500 hours Packaging - 3,000 hours The following additional data are provided: a. The actual factory overhead expense for the period is P100,000. b. The ending balances of the inventories and cost of goods sold after the application of overhead are as follows: Raw Materials Work in Process Finished Goods Cost of goods sold c. The over/(under) applied overhead during the period is considered material if at least 30% of actual factory overhead, 200,000 100,000 400,000 500,000 What is the adjusted cost of goods sold after closing the under/ over application of factory overhead?arrow_forwardGodiva company has two products, A and B. The company uses activity-based costing to allocate overhead costs of $100,000. Data relating to the company's activity pools for the current year are given below: Cost Pool Total cost in Total Number of Activity Measures Used Cost Pool Product A Product B Total Activity 1 $42,000 100 200 300 Activity 2 $10,000 20 5 25 Activity 3 $48,000 3,000 3,000 6,000 Compute the activity rate (allocation rate) for Activity 2: $500 $2,000 $400 $140arrow_forwardA Company produced 80,900 units during its first year of operations and sold 77,100 at 21.60 per unit. The company chose practical activity-at 80,900 units to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials Direct labor Expected and actual variable overhead Expected and actual fixed overhead 457,085 87,372 300,139 432,006 Calculate the unit cost and the cost of finished goods inventory under absorption costing and calculate the unit cost and the cost of finished goods inventory under variable costing.arrow_forward
- 5) Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Machining Assembly 80,000 40,000 20,000 20,000 $550,000 $900,000 $480,000 $280,000 The accounting records of the company show the following data for Job #316: Direct labor-hours Machine-hours Direct material cost Direct labor cost Machining 120 Assembly 55 50 5 $250 $150 $125 $375 What are the total manufacturing costs of Job #316? A) $1,885.00 B) $2,085.00 C) $2,485.00 D) $900.00arrow_forwardHOW MUCH IS THE TOTAL COST OF JOB 100?arrow_forwardLinger Products uses a two-stage allocation method to assign costs to its products. The following information has been provided for March: Product 1 Product 2 Total Units 3,000 2,000 5,000 Machine hours 2,000 4,000 6,000 Direct labor hours 2,000 2,000 4,000 Direct materials $ 60,000 $ 60,000 $ 120,000 Direct labor 45,000 45,000 90,000 Manufacturing overhead Utilities (machine related) $ 3,000 Supplies (labor related) 8,000 Training (labor related) 20,000 Supervision (labor related) 17,000 Machine depreciation (machine related) 24,000 Lease on factory (machine related) 33,000 Miscellaneous (labor related) 5,000 Total manufacturing overhead $ 110,000 Required:(a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related.(b)…arrow_forward
- Steel Company uses activity-based costing and reports the following for this year. Allocate overhead costs to a job that uses 40 machine hours and 30 direct labor hours. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Cutting $ 56,000 Machine hours (MH) 2,000 machine hours Assembly 240,000 Direct labor hours (DLH) 6,000 direct labor hours Total $ 296,000arrow_forwardWilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Assembly Fabrication Total Manufacturing overhead costs $3,200,000 $ 3,600,000 $ 6,800,000 Direct labor hours 100,000 60,000 160,000 Machine-hours 40,000 200,000 240,000 Job Bravo Assembly Fabrication Total Direct labor-hours 21 13 34 Machine - hours 13 16 29 Required: If Wilmington used a plantwide predetermined overhead rate based on direct labor - hours, how much manufacturing overhead would be applied to Job Bravo? If Wilmington uses departmental predetermined overhead rates with direct labor - hours as the allocation base in Assembly and machine - hours as the allocation base in Fabrication, how much manufacturing overhead would be…arrow_forwardOlmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity. Activity Measures Overhead Cost Product KO Estimated Expected Activity Activity Cost Pools Labor-related Production orders Product H9 Total 9,000 1,300 6,800 DLHS $ 550,408 53,419 836,016 6,000 700 3,800 3,000 orders 600 Order size MHs 3,000 $1,439,843 The overhead applied to each unit of Product KO under activity-based costing is closest to: (Round your Intermedlate calculations to 2 declmal places.) Multiple Cholce $611.60 per unlt $1.438.16 per unit. $778.62 per unit C479 95 nerınlt 3 自! 92°F AQI 61 9/9 pe here to search DELLarrow_forward
- Hararrow_forwardThe following cost data relate to the manufacturing activities of Newberry Company during the just completed year: Total actual manufacturing OH costs incurred (including 15,000 of indirect materials) 353,000 Purchases of raw materials (both direct and Indirect) 250,000 Direct labor cost 135,000 Raw Materials, beg 10,000 Raw Materials, end 15,000 Work in Process, beg 20,000 Work in process, end 35,000 The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The predetermined overhead rate for the year was $15 per machine-hour. A total of 23,000 machine-hours were recorded for the year. Required: Compute the amount of underapplied or overapplied manufacturing overhead cost for the year.arrow_forwardWilmington Company has two manufacturing departments—Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year—Job Bravo. Estimated Data Assembly Fabrication Total Manufacturing overhead costs $ 7,800,000 $ 8,400,000 $ 16,200,000 Direct labor-hours 150,000 90,000 240,000 Machine-hours 60,000 300,000 360,000 Job Bravo Assembly Fabrication Total Direct labor-hours 31 23 54 Machine-hours 23 26 49 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much…arrow_forward
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