Please do not give solution in image format thanku Exercise 7-33 (Algo) Prorate Under- or Overapplied Overhead (LO 7-3)Antoine Machining estimated its manufacturing overhead to be $293,880 and its direct materials costs to be $474,000 in Year 1. Threof the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $18,600 for Job AM002, $68,200 for JobAM005, and $86,800 for Job AM008. For Year 1, actual manufacturing overhead was $315,400 and total direct materials cost was$660,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates.Overhead applied in each of the inventory accounts is as follows:Work-in-process inventoryFinished goods inventoryCost of goods soldRequired:Prepare an entry to allocate the under- or overapplied overhead.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listNoA$ 24,55277,748306,900View journal entry worksheetTransaction1General JournalManufacturing Overhead AppliedWork-in-Process InventoryFinished Goods InventoryCost of Goods SoldDebit93,800Credit

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Description: Please do not give solution in image format thanku Exercise 7-33 (Algo) Prorate Under- or Overapplied Overhead (LO 7-3)Antoine Machining estimated its manufacturing overhead to be $293,880 and its direct materials costs to be $474,000 in Year 1. Thre

Applied overhead is an estimation or allocation of costs, and it may differ from the actual overhead…

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Antoine Machining estimated its manufacturing overhead to be $293,880 and its direct materials costs of the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $18,600 for AM005, and $86,800 for Job AM008. For Year 1, actual manufacturing overhead was $315,400 and to $660,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using prede

Antoine Machining estimated its manufacturing overhead to be $293,880 and its direct materials costs of the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $18,600 for AM005, and $86,800 for Job AM008. For Year 1, actual manufacturing overhead was $315,400 and to $660,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using prede

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...

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Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, 28,019.00; direct labor, 15,276.75; and applied factory overhead, 9,854.50. The following data pertain to these costs: The overhead application rates are 4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2. Nutt had no beginning work in process for August. Job 8958, which cost 14,190.18 to manufacture, was completed in July and was sold on account in August for 19,000. The job cost sheet for this job is shown on page 103. Of the jobs begun in August, Job 8961 was completed and sold on account for 24,000, Jobs 8962 and 8964 were completed but not sold, and Job 8963 was still in process. As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
(Appendix 4A) Journal Entries, Job Costs The following transactions occurred during the month of April for Nelson Company: a. Purchased materials costing 4,610 on account. b. Requisitioned materials totaling 4,800 for use in production, 3,170 for Job 518 and the remainder for Job 519. c. Recorded 65 hours of direct labor on Job 518 and 90 hours on Job 519 for the month. Direct laborers are paid at the rate of 14 per hour. d. Applied overhead using a plantwide rate of 6.20 per direct labor hour. e. Incurred and paid in cash actual overhead for the month of 973. f. Completed and transferred Job 518 to Finished Goods. g. Sold on account Job 517, which had been completed and transferred to Finished Goods in March, for cost (2,770) plus 25%. Required: 1. Prepare journal entries for Transactions a through e. 2. Prepare job-order cost sheets for Jobs 518 and 519. Prepare journal entries for Transactions f and g. (Note: Round to the nearest dollar.) 3. Prepare a schedule of cost of goods manufactured for April. Assume that the beginning balance in the raw materials account was 1,025 and that the beginning balance in the work-in-process account was zero.
(Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith Company budgeted overhead of 129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, 2,750; direct labor cost, 5,355. The average wage for Smith Company employees is 17 per hour. By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year: Required: 1. Calculate the overhead rate for the year. 2. Calculate the total cost of Job K456. 3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year. 4. Is overhead overapplied or underapplied? By how much? 5. Assuming that the normal cost of goods sold for the year is 635,600, what is the adjusted cost of goods sold?
Factory overhead rate Fabricator Inc., a specialized equipment manufacturer, uses a job order cost system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $3,000 per direct labor hour. The design engineer thinks that this is illogical. The design engineer has stated the following: Our accounting system doesn't make any sense to me. It tells me that every labor hour carries an additional burden of $3,000. This means that while direct labor makes up only 5% of our total product cost, it drives all our costs. In addition, these rates give my design engineers incentives to "design out" direct labor by using machine technology. Yet, over the past years as we have had less and less direct labor, the overhead rate keeps going up and up. I won't be surprised if next year the rate is $4,000 per direct labor hour. I'm also concerned because small errors in our estimates of the direct labor content can have a large impact on our estimated costs. Just a 30~minute error in our estimate of assembly time is worth $ 1,500. Small mistakes in our direct labor time estimates really swing our bids around. I think this puts us at a disadvantage when we are going after business. What do you think is a possible solution?
Factory overhead rate Fabricator Inc., a specialized equipment manufacturer, uses a job order cost system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $3,000 per direct labor hour. The design engineer thinks that this is illogical. The design engineer has stated the following: Our accounting system doesn't make any sense to me. It tells me that every labor hour carries an additional burden of $3,000. This means that while direct labor makes up only 5% of our total product cost, it drives all our costs. In addition, these rates give my design engineers incentives to "design out" direct labor by using machine technology. Yet, over the past years as we have had less and less direct labor, the overhead rate keeps going up and up. I won't be surprised if next year the rate is $4,000 per direct labor hour. I'm also concerned because small errors in our estimates of the direct labor content can have a large impact on our estimated costs. Just a 30~minute error in our estimate of assembly time is worth $ 1,500. Small mistakes in our direct labor time estimates really swing our bids around. I think this puts us at a disadvantage when we are going after business. What did the engineer mean about the large overhead rate being a disadvantage when plating bids and seeking new business?
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
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.
3. As of September 1, 20C, there are two jobs in process with accumulated prime costs as follows: Job 71: No. of units - 6,000, Direct materials - P5,000, Direct labor - P2,000. Job 72: No. of units - 5,000, Direct materials - P4,000, Direct labor - P1,800. Job 72 is special in nature because of its strict specifications. Factory overhead is charged at P.40 per unit and includes a P.03 provision for defective work. The prime costs incurred in September are as follows: Job 71: Direct materials - P3,000, Direct labor - 2,000; Job 72: Direct materials - P5,000, Direct labor 3,000; Job 75: No. of units - 3,000, Direct materials - P4,500, Direct labor - 2,000; Job 76: No of units - 2,000, Direct materials - P2,500, Direct labor - 1,500. Some units are found to have imperfections and the corresponding prime costs incurred in reprocessing are as follows: No. of units found with imperfections: Job 71 - 50, Job 72 - 80, Job 75 - 40. Prime costs in reprocessing: Direct materials = Job 71 -…
Company XYZ uses direct labor hours to allocate its manufacturing overhead. Manufacturing overhead was estimated to be $410,000 for the year. Actual manufacturing overhead was $415,000 and actual labor hours were 22,000. The estimated direct labor hours for the year was 20,000. The amount of manufacturing overhead applied to production would be: Select one O a. $372,727 b. $451,000 C $462,000 O a d.5410,000 O e None of the answers given