Required informationThe Foundational 15 (Static) [(LO3-1, LO3-2, LO3-3, LO3-4][The following information applies to the questions displayed below.]Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company's inventory balances were asfollows:$ 40,000$ 18,000$ 35,000Raw materialsWork in processFinished goodsThe company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company's predeterminedoverhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturingoverhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:a. Raw materials were purchased on account, $510,000.b. Raw materials used in production, $480,000. All of of the raw materials were used as direct materials.c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000; selling andadministrative salaries, $240,000.d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing),$367,000.e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000.f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobsduring the year.g. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year.h. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufactureaccording to their job cost sheets.3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)View transaction listJournal entry worksheetRecord the accrued labor costs.Note: Enter debits before creditsTransactionGeneral JournalDebit CreditRecord entryClear entryView general journal4. What is the total amount of manufacturing overhead applied to production during the year?Manufacturing overhead applied5. What is the total manufacturing cost added to Work in Process during the year?Total manufacturing cost

The manufacturing overheads will be applied on the basis of predetermined overhead rate based on…

3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction liat Journal entry worksheet Record the accrued labor costs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View peneral journal 4. What is the total amount of manufacturing overhead applied to production during the year? Manufacturing overhead applied 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost

3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction liat Journal entry worksheet Record the accrued labor costs. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View peneral journal 4. What is the total amount of manufacturing overhead applied to production during the year? Manufacturing overhead applied 5. What is the total manufacturing cost added to Work in Process during the year? Total manufacturing cost

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 10.10E: Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses...

See similar textbooks

Similar questions

Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.
Analyzing manufacturing cost accounts Summer Boards Company manufactures surf boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for May: In addition, the following information is available: Materials and direct labor were applied to six jobs in May: b.Factory overhead is applied to each job at a rate of 120% of direct labor cost. c.The May 1 Work in Process balance consisted of two jobs, as follows: d. Customer jobs completed and units sold in May were as follows: Instructions Determine the May 31 balances for each of the inventory accounts and factory overhead.
Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
High-End Products Inc. uses a standard cost system in accounting for the cost of production of its only product, Swank. The standards for the production of one unit of Swank follow: Direct materials: 10 feet of Class at $.75 per foot and 3 feet of Chic at $1.00 per foot. Direct labor: 4 hours at $12.00 per hour. Factory overhead: applied at 150% of standard direct labor costs. There was no beginning inventory on hand at July 1. Following is a summary of costs and related data for the production of Swank during the following year ended June 30: 100,000 feet of Class were purchased at $.72 per foot. 30,000 feet of Chic were purchased at $1.05 per foot. 8,000 units of Swank were produced that required 78,000 feet of Class, 26,000 feet of Chic, and 31,000 hours of direct labor at $11.80 per hour. 6,000 units of product Swank were sold. On June 30, there are 22,000 feet of Class, 4,000 feet of Chic, and 2,000 completed units of Swank on hand. All purchases and transfers are “charged in” at standard. Required: Calculate the following, using the formulas on pages 421–422 and 424 and compute the materials variances for both Class and Chic: Materials quantity variance. Materials purchase price variance. Labor efficiency variance. Labor rate variance.
Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
A schedule of cost of goods manufactured shows:a. Materials used, P600,000b. Direct labor, 1,600,000c. Overhead costs, P 1,280,000d. Work in process, ending inventory, P280,000Compute for (1) the rate of factory overhead to direct labor cost, and (2) the direct materialsincluded in the work in process inventory, assuming that the direct labor in the work in processis P100,000. a. (1) 80% ; (2) P80,000b. (1) 125% ; (2) P60,000c. (1) 80% ; (2) P100,000d. (1) 125% ; (2) P100,000
N4 Ragtime Company had the following information for the year: Direct materials used $ 112,000 Direct labor incurred (5,200 hours) $ 152,000 Actual manufacturing overhead incurred $ 168,000 Ragtime Company used a predetermined overhead rate of $34 per direct labor hour for the year. Assume the only inventory balance is an ending Work in Process Inventory balance of $17,500. What was cost of goods manufactured? Multiple Choice $437,000 $423,300 $428,000 $262,000
Required information The Foundational 15 (Static) [LO3-1, LO3-2, LO3-3, LO3-4] Skip to question [The following information applies to the questions displayed below.] Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials $ 40,000 Work in process $ 18,000 Finished goods $ 35,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Raw materials were purchased on account, $510,000. Raw materials used in production, $480,000. All of of the raw materials were used as direct materials. The following costs were accrued for employee services: direct labor, $600,000;…
Required information [The following information applies to the questions displayed below.] The following data refer to Twisto Pretzel Company for the year 20x1. Work-in-process inventory, 12/31/x0 $ 8,000 Selling and administrative salaries 13,700 Insurance on factory and equipment 3,600 Work-in-process inventory, 12/31/x1 8,200 Finished-goods inventory, 12/31/x0 14,000 Cash balance, 12/31/x1 7,000 Indirect material used 4,600 Depreciation on factory equipment 2,100 Raw-material inventory, 12/31/x0 10,100 Property taxes on factory 2,400 Finished-goods inventory, 12/31/x1 15,400 Purchases of raw material in 20x1 39,000 Utilities for factory 6,000 Utilities for sales and administrative offices 2,300 Other selling and administrative expenses 3,800 Indirect-labor cost incurred 29,000 Depreciation on factory building 3,600 Depreciation on cars used by sales personnel 1,200…
please dont provide answer in image format thank you The ABC Company had beginning work in process inventory of 50,000 and ending work in process inventory of 55,000. Manufacturing overheadapplied to work in process during the period was 78,000 and actual manufacturing overhead was 87,000. Unadjusted cost of goods sold was 900,000.What is ABC Company's adjusted cost of goods sold? A 886,000 B 891,000 C 909,000 D 914,000
Durian Company has the following data on April 30, 2008: April manufacturing overhead P30, 101.80 A decrease in ending inventories: Materials P2, 430. 00 Goods in process P590. 00 Increase in ending inventory Finished Goods P1, 320.40 The manufacturing overhead amounts to 50% of the direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing. All materials are purchased FOB shipping point What is the cost of goods manufactured? P180, 610. 80 P182, 300. 00 P181, 200. 80 P183, 200. 80
T2-7 Assign costs to completed units and ending Work in Process Inventory (LO 4) Monk, Inc. reported the following results for the month of November. Units Materials Conversion Work in Process Beginning inventory ? $ 5,900 $15,000 Added to production ? 47,300 65,000 Completed and transferred out ? ? ? Ending inventory 40,000 60% complete 40% complete Cost per equivalent unit $0.40 $0.64 Questions a.How many units were completed and transferred out of Work in Process Inventory? b.What cost should be assigned to the units transferred out of Work in Process Inventory? c.What cost should be assigned to the ending Work in Process Inventory?