Required:
Compute the company's predetermined overhead rate for the year. (Round
your answer to 2 decimal places.)
Y = a + bX
Y = $94,000 + ( $2*20,000) = 134,000
134,000/20,000=6.70 per DLH
Required:
Determine the amount of manufacturing overhead that would have been
applied to all jobs during the period.
10,800*$23.40=252,720
d.
e.
Manufacturing overhead costs of $152,000 were applied to jobs using the
companys predetermined overhead rate.
All of the jobs in progress at the end of the month were completed and
shipped to customers.
Any underapplied or overapplied overhead for the period was closed out to
g.
Cost of Goods Sold.
f.
Required:
1.
Post the above transactions to T-accounts.
The Polaris Company uses a job-order costing system. The following data
relate to October, the first month of the companys fiscal year.
Required:
1.
Prepare journal entries to record the information given above. (If no entry
is required for a transaction/event, select "No journal entry required"
in the first account field.)
2.
Prepare T-accounts for Manufacturing Overhead and Work in Process. Post
the relevant information above to each account. Compute the ending
balance in each account, assuming that Work in Process has a beginning
balance of $42,000.
1.
Prepare a schedule of cost of goods manufactured. Assume all raw
materials used in production were direct materials.
2.
Prepare a schedule of cost of goods sold.
3.
Prepare an income statement.
16.Exercise 2-14 Computing Predetermined Overhead Rates and Job Costs [LO21, LO2-2, LO2-3, LO2-7]
Moody Corporation uses a job-order costing system with a plantwide
overhead rate based on machine-hours. At the beginning of the year, the
company made the following estimates:
Required:
1.
Compute the predetermined overhead rate. (Round your answer to 2
decimal places.)
2.
During the year, Job 400 was started and completed. The following
information was available with respect to this job:
Compute the total manufacturing cost assigned to Job 400. (Round your
intermediate calculations to 2 decimal places.)
3a. During the year, the company worked a total of 146,000 machine-hours
on all jobs and incurred actual manufacturing overhead costs of
$1,350,000. What is the amount of underapplied or overapplied overhead
for the year? (Round your intermediate calculations to 2 decimal
places.)
3b. If this amount were closed out entirely to Cost of Goods Sold, would net
operating income increase or decrease?
Increase
Required:
1.
Compute the companys predetermined overhead rate. (Round your
answer to 2 decimal places.)
2.
Assume that during the year the company works only 75,000 machinehours and incurs the following costs in the manufacturing overhead and
-b.
Prepare a journal entry to close out the balance in the manufacturing
overhead account to cost of goods sold. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field. Round your intermediate calculations to 2 decimal
places.)
Required:
2.
Complete the following job cost sheet for the partially completed
Lexington Gardens Project.
d.
Rent for the year was $18,000 ($13,000 of this amount related to factory
operations, and the remainder related to selling and administrative
activities).
e.Utility costs incurred in the factory, $57,000.
f. Advertising costs incurred, $140,000.
g.
Depreciation recorded on equipment, $100,000. ($88,000 of this amount
was on equipment used in factory operations; the remaining $12,000 was
on equipment used in selling and administrative activities.)
h.
Manufacturing overhead cost was applied to jobs, $?
Goods that had cost $675,000 to manufacture according to their job cost
sheets were completed.
i.
j.
Sales for the year totaled $1,250,000. The total cost to manufacture these
goods according to their job cost sheets was $700,000.
Required:
1.
Prepare journal entries to record the transactions for the year. (If no entry
is required for a transaction/event, select "No journal entry required"
in the first account field. Round your intermediate calculations to 2
decimal places.)
2.
Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of
Goods Sold. Post relevant data from your journal entries to these Taccounts (dont forget to enter the beginning balances in your inventory
accounts). (Round your intermediate calculations to 2 decimal places.)
Overapplied
4.
Prepare an income statement for the year. (Round your intermediate
calculations to 2 decimal places.)
20.
Required:
Compute the company's predetermined overhead rate for the year. (Round
your answer to 2 decimal places.)
549,000+($3.00*36,000)=657,000
657,000/36,000=18.25
21.
Required:
Determine the amount of manufacturing overhead that would have been
applied to all jobs during the period.
11,000*$23.10 = 254,100
22.
Larned Corporation recorded the following transactions for the just completed
month.
23.
Jurvin Enterprises recorded the following transactions for the just completed
month. The company had no beginning inventories.
d.
e.
All of the jobs in progress at the end of the month were completed and
shipped to customers.
Any underapplied or overapplied overhead for the period was closed out to
Cost of Goods Sold.
g.