7. "A manufacturing company applies Factory Overhead to Production @ Rs 10 per Direct Labour hour. During the last year, total factory Overhead cost incurred was Rs 75,000 and the total Direct Labour Hours worked were 8,000. State which of the following is the correct adjustment of Factory Overhead." "FOH Over applied Rs 5,000" "FOH Under applied Rs 5,000" "Cost of goods sold increased by Rs 5,000" "Gross Profit decreased by Rs 5,000"

7. "A manufacturing company applies Factory Overhead to Production @ Rs 10 per Direct Labour hour. During the last year, total factory Overhead cost incurred was Rs 75,000 and the total Direct Labour Hours worked were 8,000. State which of the following is the correct adjustment of Factory Overhead." "FOH Over applied Rs 5,000" "FOH Under applied Rs 5,000" "Cost of goods sold increased by Rs 5,000" "Gross Profit decreased by Rs 5,000"

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business

Section: Chapter Questions

Problem 1CE: LO2 Prepare adjusting entries at December 31 for J P Company based on the following data. (a)...

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LO2 Prepare adjusting entries at December 31 for J P Company based on the following data. (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)].
7. For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods manufactured was P 13,6000,000; the work in process inventory increased by P400,000 and finished goods ending inventories increased by P400,000 during the year, but the materials inventories decreased by P 120,000. Assuming that factory overhead is applied to production at 150% of direct labor cost but only 45% of material cost, how much is the total factory overhead applied to production?
During the year, sales were $300,000. The unadjusted balance of Cost of Goods Sold was $225,000. Overapplied manufacturing overhead was $5,000. What is the gross profit on sales? a. 300,000 b. 80,000 c. 220,000 d. 180,000
1. For The period just ended, the gross margin of Robin Company was P 3,840,000, the cost of goods manufactured was P 13,6000,000; the work in process inventory increased by P400,000 and finished goods ending inventories increased by P400,000 during the year, but the materials inventories decreased by P 120,000. Assuming that factory overhead is applied to production at 150% of direct labor cost but only 45% of material cost, how much is the total factory overhead applied to production? 2. A machine shop manufactures a stainless-steel part that is used in an assembled product. Materials charged to a particular job amounted to P6,000. At the point of final inspection, it was discovered that the material used was inferior to the specifications required by the engineering department; therefore, all units had to be scrapped. The revenue received for scrap is to be treated as a reduction in manufacturing cost but cannot be identified with a specific job. A firm price is not determinable for…
16. At the end of the year, a company finds that it has under-applied factory overhead by $1,000. What would be the most common accounting treatment in this case? Increase Assets by $1,000 on the Balance Sheet Increase Profit by $1,000 in the Income Statement Increase Liabilities by $1,000 on the Balance Sheet Decrease Cost of Goods Sold by $1,000 in the Income Statement Increase Cost of Goods Sold by $1,000 in the Income Statement.
1. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? 2. Were the jobs overcosted or undercosted? By how much? Manufacturing overhead costs. . . . . . $630,000 Direct labor cost. . . . . . . . . . . . . . . . . . $1,550,000 Machine hours. . . . . . . . . . . . . . . . . . . . 90,000 At the end of the year, the company had actually incurred the following: Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,220,000 Depreciation on manufacturing plant and equipment. . . . $500,000 Property taxes on plant. . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 Sales salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000 Delivery drivers' wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,000 Plant janitors'…
Winston Company estimates that the factory overhead for the following year will be $533,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,100 hours. The total machine hours for the year were 54,800. The actual factory overhead for the year was $1,035,000. a. Determine the total factory overhead amount applied. Round to the nearest dollar.$fill in the blank 4aa682ff700b06f_1 b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number.$fill in the blank 4aa682ff700b06f_2 c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. fill in the blank 3396d0faf031ffc_2 fill in the blank 3396d0faf031ffc_3 fill in the blank 3396d0faf031ffc_5 fill in the blank 3396d0faf031ffc_6
Assuming only Job# 2 and 3 were completed and sold, what is the cost of goods sold at year-end? a.) 523,700 b.) 468,075 c.) 484,700 d.) 394,700
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to increase or decase and by how much?
The Rafan Company manufactures a product which is sold at Rs.16 each. Under present business conditions, the company is operating at 30% normal capacity with production and sales of 8,000 units per month. An analysis of costs for a recent month sows: Direct Materials Rs. 10,000 Direct Labor 12,000 Superintendent’s salary 5,000 Depreciation Building 2,000 Heat and light 500 Indirect labor 6,000 Deprecation of machinery 3,000 Machinery Repair 1,000 Fire Insurance 1,500 Miscellaneous 8,00 Factory Rent 5,000 Property Tax 400 Total Rs. 47,200 The total marketing expenses were Rs. 50,000, which included 3,000 for packing and shipping. The sales on the special order would require a similar unit cost for packing and shipping. The total administrative and general costs were Rs. 7,000. An offer has been received from a large chain store to purchase 96,000 units to be shipped in equal months each month during the coming year. These units would be manufactured with slight immaterial modifications…
A company absorbs factory overheads at a rate of N$25.00 per direct labour hour. At the beginning of the year, the company estimated that the direct labour hours would be 12 000 hours. During the year, the company charged N$250 000 in absorbed factory overhead costs, and actual manufacturing overheads costs incurred were NS350 000. The actual direct labour hours during the period were:
The following information relates to Wells Fargo for July 2008: Actual direct labour costs $80 000 Actual direct labour rate per hour $8 Factory overhead rate per direct labour hour $12 Factory overhead incurred $160 000 Assuming underapplied or overapplied overhead is transferred to cost of goods sold at the end of the period, which of the following would be the entry to the cost of goods sold account? · $80 000 debit · $80 000 credit · $40 000 credit · $40 000 debit