2) Weldin Inc. has provided the following data for the month of October. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work in process Finished goods Cost of goods sold Total Direct material 2550 15130 82620 100300 Direct labor 800 13350 72900 87050 Manufacturing overhead applied 1320 6600 36080 44000 Total 4670 35080 191600 231350 Manufacturing overhead incurred for the month was $47,000. Required: a. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. Provide the journal entry that would record the allocation of underapplied or overapplied among work in process, finished goods, and cost of goods sold. b. provide the journal entry if the company wants to close out underapplied or overapplied overhead to cost of goods sold. c. How much higher or lower will be net operating income if the company directly close out underapplied or overapplied overhead to cost of goods sold instead of using allocation process?

2) Weldin Inc. has provided the following data for the month of October. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work in process Finished goods Cost of goods sold Total Direct material 2550 15130 82620 100300 Direct labor 800 13350 72900 87050 Manufacturing overhead applied 1320 6600 36080 44000 Total 4670 35080 191600 231350 Manufacturing overhead incurred for the month was $47,000. Required: a. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. Provide the journal entry that would record the allocation of underapplied or overapplied among work in process, finished goods, and cost of goods sold. b. provide the journal entry if the company wants to close out underapplied or overapplied overhead to cost of goods sold. c. How much higher or lower will be net operating income if the company directly close out underapplied or overapplied overhead to cost of goods sold instead of using allocation process?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 6E: The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000...

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Selected information concerning the operations of a company for the year ended December 31 is as follows: Work in process inventories at the beginning and end of the year were zero. Beginning inventory of finished goods was 9,650 (for 1,000 units). Cost of goods sold was 174,600. What was the companys finished goods inventory cost at December 31? a. 98,050 b. 29,100 c. 29,050 d. 40,600
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LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant: During June, direct labor cost was 143,000, direct materials purchases were 346,000, and the total overhead cost was 375,800. The inventories at the end of June were: Required: 1. Prepare a cost of goods manufactured statement for June. 2. Prepare a cost of goods sold schedule for June.
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The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.
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