Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each productiondepartment. The Casting Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At thebeginning of the current year, the company had made the following estimates:CastingCustomizingMachine-hoursDirect labor-hoursTotal fixed manufacturing overhead costVariable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-15,00011,000$46,500$ 1.4021,00010,000$38,000$4.10hourThe estimated total manufacturing overhead for the Customizing Department is closest to:Multiple Cholce$91.600$41.000137 PM92 F AQI 619/9/2021Type here to searchDELLHomePgUpPgDnDeletePrtScrInsertF12

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Answered: Garza Corporation has two production…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Post the relevant items from your journal entries to thes accounts. 3. Prepare a journal entry for item (g) above. 4. If 11,000 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be inclu cost of goods sold for February? Answer is not complete. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If 11,000 of the custom-made machined parts are shipped to the customer in February, how much of this job's cost will be included in cost of goods sold for February? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Portion of job cost included in cost of goods sold 45 X < Required 3
The Oakman Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.40 with direct labor hours as the allocation base. The company has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing Department, $493,500, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 210,000. The estimated costs for the Packaging Department, $76,250, will be allocated based on machine hours, and the estimated machine hours for the year are 25,000. In October, the company incurred 20,000 direct labor hours in the Mixing Department and 13,000 machine hours in the Packaging Department. Requirement 1. Compute the predetermined overhead allocation rates. Round to two decimal places. Begin by selecting the formula to calculate the predetermined…
Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II. (b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours). (c) Project II was sold during the period for $120,000. The ending balance in Work in Process was: Multiple Choice X $34,000. $0. $46,800. $136,000.
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs based on machine-hours. At the beginning of the year, the company used a cost formula to estimate $4,354,800 in manufacturing overhead cost at an activity level of 573,000 machine-hours. The company spent the month of January working on a large order for 12,100 custom-made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw materials purchased on account, $318,000. b. Raw materials used in production, $259,000 (80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory, $168,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $62,400. e. Other manufacturing overhead costs incurred on account, $84,300. f. Manufacturing overhead cost was applied to production on the basis of…
The Oswell Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $579,800, and estimated direct labor hours are 260,000. In October, the company incurred 60,000 direct labor hours. Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate. Predetermined OH ? ÷ ? = allocation rate ? ÷ ? = ? Requirement 2. Determine the amount of overhead allocated in October. Begin by selecting the formula to allocate overhead costs. Allocated mfg. ? × ? = overhead costs The overhead allocated…
Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor- hours. The company based its predetermined overhead rate for the current year on 46,000 direct labor-hours, total fixed manufacturing overhead cost of $322,000, and a variable manufacturing overhead rate of $4.80 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours Direct materials Direct labor cost 400 $ 800 $ 6,300 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round intermediate calculations and final answer to 2 decimal places.) Selling price per unit
Rockwell Collins, headquartered in Cedar Rapids, IA, sells aviation and information technology systems. Rockwell applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, a small division of the company based its predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour. Therefore, the overhead for the year was:
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 16,000 11,000 Direct labor-hours 18,000 6,000 Total fixed manufacturing overhead cost $ 92,800 $ 28,800 Variable manufacturing overhead per machine-hour $ 1.20 Variable manufacturing overhead per direct labor-hour $ 5.00 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 50 40 Direct labor-hours 60 30 Direct materials $ 430 $ 180 Direct labor cost $ 800 $ 540…
Purple Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Cutting Department Finishing Department Direct labor-hours 25,000 10,000 30,000 $250,000 $2.00 Machine-hours 4,000 $300,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $4.00 A) Compute the predetermine overhead rate for each department. B) The job cost sheet for Job 203, which was started and completed during the year, showed the following: Cutting Department Finishing Department Direct labor-hours 25 Machine-hours 100 $600 $105 $300 $350 Direct materials Direct labor cost Using the predetermined overhead rate that you computed in…
Dowty Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead Capacity of the lathe $19,964 280 hours Actual results: Actual total fixed manufacturing overhead Actual hours of lathe use $19,964 230 hours The manufacturing overhead applied is closest to: Multiple Choice $19,964 $16,399 $7,639 $9,300
Rapier Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated jointer. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead Capacity of the jointer $3,740 200 hours Actual results: Actual total fixed manufacturing overhead Actual hours of jointer use $3,740 170 hours The predetermined overhead rate based on hours at capacity is closest to: Multiple Choice $58.24 per hour $49.50 per hour $22.00 per hour $18.70 per hour
Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine- hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,158,800 in manufacturing overhead cost at an activity level of 562,000 machine-hours. The company spent the entire month of January working on a large order for 12,500 custom- made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw materials purchased on account, $319,000. b. Raw materials used in production, $267,000 (80% direct materials and 20% indirect materials). c. Labor cost accrued in the factory, $162,000 (one-third direct labor and two-thirds indirect labor). d. Depreciation recorded on factory equipment, $63,100. e. Other manufacturing overhead costs incurred on account, $84,300. f. Manufacturing overhead cost was…

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