Homework Help is Here – Start Your Trial Now!
Business
Accounting
Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations. the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000

Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations. the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 5CE: Yohan Company has the following balances in its direct materials and direct labor variance accounts...
See similar textbooks
icon
Related questions
Question
Systems Design: Job-Order Costing 205 Manufacturing overhead allocated Work-in-process Finished goods Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead allocated d. Manufacturing overhead allocated Work-in-process Finished goods Cost of goods sold Manufacturing overhead control P100,000 20,000 a. 40,000 P160,000 b. P100,000 P 625 1,250 10,625 100,000 c. P112,500 P 625 1,250 10,625 100,000 P100,000 625 1,250 10,625 P112,500 E Problems Problem 1 The Mayhem Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year: a. Raw materials purchased on account, P210,000. Kaw materials issued to production, P190,000 (P178,000 direct materials and P12.000 indi
Transcribed Image Text:Systems Design: Job-Order Costing 205 Manufacturing overhead allocated Work-in-process Finished goods Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead control Manufacturing overhead control Work-in-process Finished goods Cost of goods sold Manufacturing overhead allocated d. Manufacturing overhead allocated Work-in-process Finished goods Cost of goods sold Manufacturing overhead control P100,000 20,000 a. 40,000 P160,000 b. P100,000 P 625 1,250 10,625 100,000 c. P112,500 P 625 1,250 10,625 100,000 P100,000 625 1,250 10,625 P112,500 E Problems Problem 1 The Mayhem Company uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year: a. Raw materials purchased on account, P210,000. Kaw materials issued to production, P190,000 (P178,000 direct materials and P12.000 indi
20. Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500), Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to write off the difference between allocated and actual overhead directly to cost of goods sold? Manufacturing overhead allocated Cost of goods sold Manufacturing overhead control P100,000 P12,500 a. P112,500 Manufacturing overhead control Cost of goods sold Manufacturing overhead allocated Manufacturing overhead allocated Cost of goods sold Manufacturing óverhead control Manufacturing overhead allocated Work-in-process Manufacturing overhead control P100,000 12,500 b. P112,500 P100,000 P340,000 с. P440,000 P100,000 12,500 d. P112,500 Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). 21. Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to prorate the write off of the difference between allocated and actual overhead using the ending balance approach?
Transcribed Image Text:20. Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500), Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to write off the difference between allocated and actual overhead directly to cost of goods sold? Manufacturing overhead allocated Cost of goods sold Manufacturing overhead control P100,000 P12,500 a. P112,500 Manufacturing overhead control Cost of goods sold Manufacturing overhead allocated Manufacturing overhead allocated Cost of goods sold Manufacturing óverhead control Manufacturing overhead allocated Work-in-process Manufacturing overhead control P100,000 12,500 b. P112,500 P100,000 P340,000 с. P440,000 P100,000 12,500 d. P112,500 Bernadette Manufacturing Company is a new company that needs to make a decision about the method to use in adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated (P100,000) was different from the actual amount incurred (P112,500). 21. Ending balances in the relevant account were: Work-in-process Finished goods Cost of goods sold P20,000 40,000 340,000 What is the correct journal entry to prorate the write off of the difference between allocated and actual overhead using the ending balance approach?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS