College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 27, Problem 1CE
LO2 Prepare
- (a) Factory
overhead is applied at a rate of 75% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs in process totaled $8,000. - (b) A physical count of factory supplies at the end of the year shows that $4,920 of factory supplies were used during the year.
- (c) Depreciation expense for the year on the factory building was $8,700 and on factory equipment was $11,600, a total of $20,300.
- (d) The factory overhead account has a debit balance of $186,500 and a credit balance of $183,900 [after recording adjustments (a) through (c)].
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During September of the current year, Reyes Company purchased P3,500,000 raw materials. During the month, Reyes incurred P2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials P100,000; Decrease in work in process P150,000 and decrease in finished goods P75,000. What is the amount of cost of goods sold?
a.P7,147,000
b.P7,297,000
c.P6,922,000
d.P7,422,000
A manufacturing company applies factory overhead based on direct labor hours. At the
beginning of the year, it estimated that factory overhead costs would be $404,064 and direct
labor hours would be 44,896. Actual factory overhead costs incurred were $436,743, and
actual direct labor hours were 50,549. What is the amount of overapplied or underapplied
manufacturing overhead at the end of the year?
Oa. $18,198 overapplied
Ob. $454,941 overapplied
Oc. $18,198 underapplied
Od. $50,877 underapplied
Solomon Manufacturing Company began operations on January 1. During the year, it started and completed 1,690 units of product.
The financial statements are prepared in accordance with GAAP. The company incurred the following costs:
1. Raw materials purchased and used-$3,060.
2. Wages of production workers-$3,510.
3. Salaries of administrative and sales personnel-$1,975.
4. Depreciation on manufacturing equipment-$5,936.
5. Depreciation on administrative equipment-$1,785.
Solomon sold 1,060 units of product.
Required
a. Determine the total product cost for the year.
b. Determine the total cost of the ending inventory.
Note: Do not round intermediate calculations.
c. Determine the total of cost of goods sold.
Note: Do not round intermediate calculations.
a. Total product cost
b. Total cost of ending inventory
c. Total cost of goods sold
Chapter 27 Solutions
College Accounting, Chapters 1-27
Ch. 27 - Under the perpetual inventory system, Cost of...Ch. 27 - Prob. 2TFCh. 27 - On the spreadsheet, the factory overhead account...Ch. 27 - Prob. 4TFCh. 27 - The adjustment for factory overhead applied to...Ch. 27 - LO2 The adjustment for the amount of factory...Ch. 27 - The adjustment for depreciation expense for the...Ch. 27 - At the end of the accounting period, a credit...Ch. 27 - Prob. 4MCCh. 27 - Prob. 5MC
Ch. 27 - LO2 Prepare adjusting entries at December 31 for J...Ch. 27 - Prob. 2CECh. 27 - Prob. 3CECh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - What are the distinctive features of ToyJoys...Ch. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR...Ch. 27 - Prob. 2SEACh. 27 - Prob. 3SEACh. 27 - CLOSING JOURNAL ENTRIES Prepare closing journal...Ch. 27 - REVERSING JOURNAL ENTRIES Prepare reversing...Ch. 27 - SPRE ADSHEET, ADJUSTING ENTRIES, AND FIN ANCIAL...Ch. 27 - FINANCIAL STATEMENTS The adjusted trial balance...Ch. 27 - ADJUSTING. CLOSING. AND REVERSING ENTRIES A...Ch. 27 - ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR...Ch. 27 - Prob. 2SEBCh. 27 - ADJUSTING JOURNAL ENTRIES FOR A MANUFACTURING...Ch. 27 - Prob. 4SEBCh. 27 - REVERSING ENTRIES Prepare reversing journal...Ch. 27 - SPREADSHEET, ADJUSTING ENTRIES, AND FINANCIAL...Ch. 27 - FINANCIAL STATEMENTS The adjusted trial balance...Ch. 27 - Prob. 8SPBCh. 27 - Prob. 1MYWCh. 27 - Reese Manufacturing Company manufactures and sells...Ch. 27 - Drafts of the condensed income statement and...
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