Managerial Accounting
16th Edition
ISBN: 9781259995484
Author: Ray Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 8E
EXERCISE 3-8 Applying
Work in Process, ending....................$19.500
Finished Goods, ending....................58,500
Cost of Goods Sold....................312.000
Overhead applied....................$390.0::
For example, of the $40,000 ending balance in Work in Process, $19,500 was overhead that had been applied during the year.
Required:
- Identify' reasons for entries (a) through (d).
- Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary
journal entry . - Assume that the underapplied or overapplied overhead is closed proportionally' to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. Provide supporting computations.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question Content Area
Selected accounts with a credit amount omitted are as follows
Work in Process
Apr. 1
Balance
7,100
Apr. 30
Goods finished
X
30
Direct materials
63,000
30
Direct labor
192,400
30
Factory overhead
57,720
Finished Goods
Apr. 1
Balance
12,700
30
Goods finished
303,900
What was the balance of Work in Process as of April 30?
a.$12,700
b.$16,320
c.$57,720
d.$303,900
Indirect materials
Indirect labor
Other overhead
Star
Promotions
$ 11,200
55,600
16,100
Valle
Builders
$ 6,800
46,400
Overhead applied
Star Promotions
49,200
90,900
98,200
1-a. Determine whether overhead is overapplied or underapplied.
1-b. Prepare the journal entry to allocate (close) overspplied or underapplied overhead to Cost of Goods Sold.
Valle Builders
2-a. Determine whether overhead is overapplied or underapplied.
2-b. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
Req 2A
Req 2B
Determine whether overhead is overapplied or underapplied.
Factory Overhead-Star
Yates Manufacturing Company incurs the following manufacturing costs and expenses during the month of May.
1.
Assembly line wages
2.
Raw materials used directly in product
3.
Depreciation on office equipment
4.
Property taxes on factory building
5.
Rent on factory building
6.
Sales commissions
7.
Depreciation on factory equipment
8.
Factory utilities
9.
Wages for factory maintenance workers
10.
Advertising
11.
Indirect materials used in production
12.
Factory manager's salary
Complete the following matrix by placing an X markunder the appropriate headings.
Cost
Direct
Direct
Manufacturing
Period
Item
Materials
Labor
Overhead
Costs
1.
2.
Chapter 3 Solutions
Managerial Accounting
Ch. 3.A - EXERCISE 3A-1 Transaction Analysis LO3-5 Carmen...Ch. 3.A - EXERCISE 3A-2 Transaction Analysis LO3-5 Adams...Ch. 3.A - EXERCISE 3A-3 Transaction Analysis LO3-5 Dixon...Ch. 3.A - PROBLEM 3A-4 Transaction Analysis LO3-5 Morrison...Ch. 3.A - PROBLEM 3A-5 Transaction Analysis LO3-5 Star...Ch. 3.A -
PROBLEM 3A-6 Transaction Analysis LO3-5
Brooks...Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - What is underapplied overhead Overapplied...Ch. 3 - 3-4 Provide two reasons why overhead might be...
Ch. 3 - Prob. 5QCh. 3 - How do you compute the raw materials used in...Ch. 3 - Prob. 7QCh. 3 - How do you compute the cost of goods manufactured?Ch. 3 - Prob. 9QCh. 3 - Prob. 10QCh. 3 - Prob. 1AECh. 3 - Prob. 2AECh. 3 - Prob. 3AECh. 3 - Prob. 4AECh. 3 - Prob. 1F15Ch. 3 - Prob. 2F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 4F15Ch. 3 - Prob. 5F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 7F15Ch. 3 - Prob. 8F15Ch. 3 - Prob. 9F15Ch. 3 - Prob. 10F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 12F15Ch. 3 - Prob. 13F15Ch. 3 - Prob. 14F15Ch. 3 - Prob. 15F15Ch. 3 - EXERCISE 3-1 Prepare Journal Entries LO3-1 Lamed...Ch. 3 - Prob. 2ECh. 3 - EXERCISE 3-3 Schedules of Cost of Goods...Ch. 3 - EXERCISE 3-4 Underapplied and Overapplied Overhead...Ch. 3 - Prob. 5ECh. 3 - EXERCISE 3-6 Schedules of Cost of Goods...Ch. 3 - (
$
15,000...Ch. 3 - EXERCISE 3-8 Applying Overhead: Journal Entries;...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 -
PROBLEM 3-11: T-Account Analysis of Cost Flows...Ch. 3 - Prob. 12PCh. 3 - PROBLEM 3-13 Schedules of Cost of Goods...Ch. 3 - Prob. 14PCh. 3 -
PROBLEM 3-15 Journal Entries; T-Accounts;...Ch. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- napters 1,2, & 2 Beginning WIP Direct materials Direct labor Applied overhead The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. To finished goods Ending WIP # "* 3 Multiple Choice ✔ J The cost of jobs transferred to finished goods is: E D Debit $91,700. $102,400. $ 4 101 R תו F % 1/ Work in Process Inventory 5 6,300 48,900 T A 31,400 17,600 12,500 16 A 40 6 Y D G H & 4- Q Search 7 ) O O L fu AAI P 112 + [ ins prt sc 4 Help 1 delete backspaarrow_forwardJurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. a. $76,400 in raw materials were purchased for cash. b. $73,000 in raw materials were used in production. Of this amount, $65,100 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $152,700 were incurred and paid. Of this amount, $134,700 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,800 were incurred and paid. e. Manufacturing overhead of $126,700 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Determine the…arrow_forwardTB MC Qu. 3-30 (Static) The final step in recognizing the... The final step in recognizing the completion of production requires a company to: Multiple Choice add direct materials to Finished-Goods Inventory. add direct labor to Work-in-Process Inventory. add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory. debit Finished-Goods Inventory and credit Work-in-Process Inventory. debit Work-in-Process Inventory and credit Finished-Goods Inventory.arrow_forward
- 16. LO 5.5 The journal entry to record the $500 of work in process ending inventory that consists of $300 of direct materials, $50 of manufacturing overhead, and $150 od direct labor is which of the following? А. Work in Process Inventory Accounts Payable 500 500 (When added to the process) В. Work in Process Inventory Materials Inventory Wages Payable Manufacturing Overhead 500 300 150 50 (As incurred or applied) С. Cost of Goods Sold 500 Work in Process Inventory 500 (When transferred) D. Accounts Payable Work in Process Inventory 500 500 (When added to the process)arrow_forwardQuestion Content Area Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 269,610 Aug. 31 Goods finished 176,760 31 Direct materials X 31 Direct labor 36,300 31 Factory overhead X Factory Overhead Aug. 1 – 31 Costs incurred 109,360 Aug. 1 Balance 12,070 31 Applied (30% of direct labor cost) X If the balance of Work in Process on August 31 is $199,160, what was the amount debited to Work in Process for direct materials in August? a.$59,120 b.$328,310 c.$505,070 d.$106,750arrow_forward! Required Information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $101,400 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,600 25,000 Job 201 Job 202 Total direct labor Indirect labor Total labor used 74,600 10,020 $ 84,620 e. Time tickets show the following labor used for the month. $ 40,600 14,000 54,600 25,600 5 80,200 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $167,960 on credit. (2) Record cost of goods sold for Job 201 g. Incurred the following actual other overhead costs for the month. Depreciation of factory…arrow_forward
- PAS. LO 4.5 Complete the information in the cost computations shown here: Raw Materials Work in Pracess nventory $ 342 S 92 Beginning imventory Purchases Materials avalable for use Ending inentory Beginning inventory Materials used in production Drect labor 1,533 1,535 Overhead applied Manufacturing costs incurred Ending inventory 321 22441 Materials used in production Cost of Geods Marufactured Finished Goods Inventory Beginning inventory Coot of Goeds Mandactured Goods Available for Sale Ending inventory Cost of Goods Sold $25,002 21.788 ANSWER Raw Materials Beginning inventory Purchases Material available for use Ending inventey Materials used in production Work in Process Iaventory Beginning inventory Materials used in production Direct labor Overhead applied Manufacturing costs incurred Ending inventory Cast of goods manufactured Finished Goods Iaventory Beginning inventory Cast of goods manufactured Goods available for sale Ending inventory Cost of goods soldarrow_forwardIndirect materials Indirect labor Other overhead Overhead applied Star Promotions $ 22,000 46,000 Valle Builders $ 12,500 46,500 17,000 47,000 88,000 105,000 Star Promotions 1-a. Determine whether overhead is overapplied or underapplied. 1-b. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Builders 2-a. Determine whether overhead is overapplied or underapplied. 2-b. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.arrow_forwardMidterm Assume the following information from a schedule of cost of goods manufactured: Cost of goods manufactured Beginning work in process inventory Direct materials used in production Manufacturing overhead applied to work in process Total manufacturing costs added to production What is the ending work in process inventory? Multiple Choice O $118,300 O $98,300 $68,300 O $158,300 $ 158,000 $ 26,300 $ 50,000 $ 90,000 $ 200,000arrow_forward
- EXERCISE 5-15 Comprehensive Activity-Based Costing Exercise L05-2, L05-3, L05-4, L05-5 Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries. Other overhead costs. Total overhead costs.. Activity Cost Pool Supporting direct labor. ... Order processing Customer support. Other Wages and salaries. . . . . . . Other overhead costs..... vollot ynsqmos silt pode noitsmolni lenonibb neupon edull porib od T $300,000 on adol 100,000A #T Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization-sustaining activity Supporting Direct Labor 40% 30% Order Processing $400,000 Distribution of Resource Consumption Across Activities 3210 30% 10% Customer Support 20% 20% Total Activity for the Year 20,000 DLHs 400 orders 200 customers Not applicable Senasisch Other 10% 40% Total 100% 100%arrow_forwardM Thu Sep 8 t 14 of 15 AA Period Ce b Home | bartl... 23 my.post.edu... X 14 Unit 1-... 14 rint ezto.mheducation.com A Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 5 Total direct manufacturing cost Total indirect manufacturing cost Okay C Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: G what is the h. Average Cost per Unit $ 7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) @ 29% 4 + 88 Init 1-C... You aarrow_forward104-Principles of Manageme Ay courses / BUSS 104-1-20202 / MAKEUP TEST SCHEDULED st (06-05-2021 from 11:00 to 12: Noon) Which one is a Historical Cost Select one: O a. All the Above O b. Rent Factory O c. office Rent O d. Office salary 104-05-21 035 Jump to..arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License