1. Calculate the balance in Work in Process as of June 30.$2. Calculate the balance in Finished Goods as of June 30.$3. Calculate the cost of goods sold for June.tA Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year was$225,000, and budgeted direct labor hours were 18,000. The average wage rate for direct labor is expected to be$25 per hour. During June, Perrin Company worked on four jobs. Data relating to these four jobs follow:Beginning balanceMaterials requisitionedDirect labor costJob 39$26,60020,70011,800Job 40$34,20020,00017,100Job 41$17,70010,1004,750Job 42$1,10015,9006,800Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39was sold at 125 percent of cost. Job 40 is the only job in Finished Goods Inventory and will remain there until thecustomer accepts delivery and pays. Jobs 41 and 42 remain unfinished at the end of the month.

The WIP in progress indicates the goods are in the processing stage and not ready for sale, The…

Answered: Perrin Company designs industrial…

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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Pinnacle Corp. budgeted $260,140 of overhead cost for the current year. Actual overhead costs for the year were $217,980. Pinnacle's plantwide allocation base, machine hours, was budgeted at 51,430 hours. Actual machine hours were 47,690. A total of 99,320 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is:
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted direct labor hours were 26,000. The average wage rate for direct labor is expected to be $20 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $25,900 $33,300 $17,900 $1,400 Materials requisitioned 20,400 21,800 12,000 14,000 Direct labor cost 11,500 18,900 6,650 4,900 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 125 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain…
Pinnacle Corp. budgeted $245,500 of overhead cost for the current year. Actual overhead costs for the year were $240,720. Pinnacle's plantwide allocation base, machine hours, was budgeted at 48,450 hours. Actual machine hours were 55,160. A total of 101,090 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a. $5.07 per machine hour b. $4.97 per machine hour c. $2.43 per machine hour d. $2.38 per machine hour
Blumen Textiles Corporation began April with a budget for 90,000 hours of production in the Weaving Department. The department has a full capacity of 100,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $540,000 Fixed overhead 240,000 Total $780,000 The actual factory overhead was $782,000 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 92,500 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Determine the variable factory overhead controllable variance.$fill in the blank 1 FavorableUnfavorable b. Determine the fixed factory overhead volume variance.$fill in the blank 3 FavorableUnfavorable
Pinnacle Corp. budgeted $218,050 of overhead cost for the current year. Actual overhead costs for the year were $207,500. Pinnacle's plantwide allocation base, machine hours, was budgeted at 53,300 hours. Actual machine hours were 46,460. A total of 91,830 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$2.26 per machine hour b.$4.09 per machine hour c.$3.89 per machine hour d.$2.37 per machine hour
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 20,000 hours for production: 1 Variable overhead cost: 2 Indirect factory labor $52,000.00 3 Power and light 8,000.00 4 Indirect materials 20,000.00 5 Total variable overhead cost $80,000.00 6 Fixed overhead cost: 7 Supervisory salaries $53,600.00 8 Depreciation of plant and equipment 39,200.00 9 Insurance and property taxes 119,700.00 10 Total fixed overhead cost 212,500.00 11 Total factory overhead cost $292,500.00 Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 hours for production. The actual fixed costs were as budgeted. The actual variable…
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 7,700 hours. Variable costs: Indirect factory wages $22,330 Power and light 15,862 Indirect materials 13,552 Total variable cost $51,744 Fixed costs: Supervisory salaries $14,700 Depreciation of plant and equipment 37,710 Insurance and property taxes 11,500 Total fixed cost 63,910 Total factory overhead cost $115,654 During May, the department operated at 8,200 standard hours. The factory overhead costs incurred were indirect factory wages, $24,020; power and light, $16,590; indirect materials, $14,700; supervisory salaries, $14,700; depreciation of plant and equipment, $37,710; and insurance and property taxes, $11,500. Required: Prepare a factory overhead cost…
The Assembly Department produced 5,000 units of product during March. Each unit required 2.20 standard direct labor hours. There were 11,500 actual hours used in the Assembly Department during March at an actual rate of $17.60 per hour. The standard direct labor rate is $18.00 per hour. Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31. If an amount box does not require an entry, leave it blank. Date Account Debit Credit March 31
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 6,200 hours. Variable costs: Indirect factory wages $20,460 Power and light 13,826 Indirect materials 11,346 Total variable cost $45,632 Fixed costs: Supervisory salaries $10,410 Depreciation of plant and equipment 26,700 Insurance and property taxes 8,150 Total fixed cost 45,260 Total factory overhead cost $90,892 During May, the department operated at 6,600 standard hours. The factory overhead costs incurred were indirect factory wages, $22,000; power and light, $14,450; indirect materials, $12,300; supervisory salaries, $10,410; depreciation of plant and equipment, $26,700; and insurance and property taxes, $8,150. Required: Prepare a factory overhead cost…
please answer and explain correctly and completely with all work
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,800 and budgeted production of 36,000 units. Actual results for the month of October reveal that Cholla produced 31,000 units and spent $10,500 on fixed manufacturing overhead costs.
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 320,000 $ 160,000 $ 80,000 $ 240,000 Direct labor 80,000 40,000 20,000 60,000 Manufacturing overhead 230,000 206,000 194,000 ? Total manufacturing costs (a) $ 630,000 $ 406,000 $ 294,000 $ ? Number of units to be produced (b) 80,000 40,000 20,000 60,000 Estimated unit product cost (a) ÷ (b) $ 7.88 $ 10.15 $ 14.70 $ ? Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with…

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