Adding Company applies overhead costs to products basedon a pre-determined overhead rate of 80% of direct laborcost. During July, Adding Company reported the followinginventory balances:July 1$37,000$54,000$42,000Direct materialsWork in processFinished goodsDuring July, Adding Company incurred the following costs:Advertising ...Depreciation, factory equipmentDirect materials purchased ...Production supervisor's salaryIndirect materials ...Rent..Sales commissions ..CEO's salary ..Insurance, factory building.Direct labor ....Factory utilitiesDepreciation, copier in sales office..........July 31$81,000$26,000$69,000...$ 46,000$ 21,000$297,000$ 73,000$ 35,000$ 89,000$306,000$ 29,000$285,000$ 37,000$ 22,000$ 60,000Forty-five percent of the rent relates to the factorywhile fifty-five percent of the rent relates to theadministrative building.Calculate Adding Company's cost of goods sold for Julyafter the overhead variance has been closed.

Name: Adding Company applies overhead costs to products basedon a pre-deter
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Description: Adding Company applies overhead costs to products basedon a pre-determined overhead rate of 80% of direct laborcost. During July, Adding Company reported the followinginventory balances:July 1$37,000$54,000$42,000Direct materialsWork in processFinis

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Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 $54,000 $42,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising ... Depreciation, factory equipment Direct materials purchased Production supervisor's salary. Indirect materials .... $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Depreciation, copier in sales office ... $ 22,000 $ 60,000 Sales commissions CEO's salary .... Insurance, factory building.. Direct labor .... Factory utilities .... Rent July 31 $81,000 $26,000 $69,000 ... Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods sold for July

Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 $54,000 $42,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising ... Depreciation, factory equipment Direct materials purchased Production supervisor's salary. Indirect materials .... $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Depreciation, copier in sales office ... $ 22,000 $ 60,000 Sales commissions CEO's salary .... Insurance, factory building.. Direct labor .... Factory utilities .... Rent July 31 $81,000 $26,000 $69,000 ... Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods sold for July

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 3SEB: JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Rich Manufacturing Corporation had the following...

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JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Eto Manufacturing had the following transactions during the month: (a) Purchased raw materials on account, 70,000. (b) Issued direct materials to Job No. 300, 25,000. (c) Issued indirect materials to production, 10,000. (d) Paid biweekly payroll and charged direct labor to Job No. 300, 8,000. (e) Paid biweekly payroll and charged indirect labor to production, 3,000. (f) Issued direct materials to Job No. 301, 20,000. (g) Issued indirect materials to production, 4,000. (h) Paid miscellaneous factory overhead charges, 6,000. (i) Paid biweekly payroll and charged direct labor to Job No. 301, 10,000. (j) Paid biweekly payroll and charged indirect labor to production, 2,000. REQUIRED Prepare general journal entries for transactions (a) through (j).
SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 20,500 Materials inventory, January 1 11,000 Materials purchases 12,000 Materials inventory, December 31 13,000 Direct labor 9,500 Overhead 5,500 Work in process, December 31 10,500
On December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: During December the following transactions occurred: a. Purchased materials costing 50,000 on account. b. Placed direct materials costing 49,000 into production. c. Incurred production wages totaling 50,500. d. Incurred overhead costs for December: e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses the weighted average cost method. The ending inventory of work in process consisted of 1,000 units that were completed as to materials and 25% complete as to labor and overhead. Required: Prepare the journal entries to record the above December transactions.
Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580
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Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.
Entries and schedules for unfinished jobs and completed jobs Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations: A. Materials purchased on account, 147,000. B. Materials requisitioned and factory labor used: C. Factory overhead costs incurred on account, 6,000. D. Depreciation of machinery and equipment, 4,100. E. The factory overhead rate is 40 per machine hour. Machine hours used: F. Jobs completed: 101, 102, 103, and 105. G. Jobs were shipped and customers were billed as follows: Job 101, 62,900; Job 102, 80,700; Job 105, 45,500. Instructions 1. Journalize the entries to record the summarized operations. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
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