Bonita, Inc. manufactures ergonomically designed computer furniture. Bonita uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated Cost CC723 Computer caddy 10,000 $500,050 CH291 Chair 9,000 242,810 PS812 Printer stand 12,000 136,000 $878,860 On November 30, Bonita’s Raw Materials Inventory account totaled $136,000, and its Finished Goods Inventory totaled $536,000. Bonita applies manufacturing overhead on the basis of machine hours. The company’s manufacturing overhead budget for the year totaled $1,950,000, and the company planned to use 130,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 118,000 machine hours, total manufacturing overhead amounted to $1,818,700, and Cost of Goods Sold was $4,680,000. Bonita purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month: Job No. Materials Issued Machine Hours Direct Labor Hours Direct Labor Cost CC723 $85,000 4,250 9,600 $115,200 CH291 $7,000 650 2,400 $28,800 PS812 $110,000 4,400 14,300 $171,600 DS444 $123,000 2,200 8,700 $104,400 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. Item Units CC723 Computer caddy 10,000 CH291 Chair 9,000 DS444 Desk 5,000 Assume that Bonita sold 8,200 computer caddies, 8,000 chairs, and 4,500 desks in December. Bonita incurred $172,800 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? Overhead select an option by $enter a dollar amount Assume that Bonita closes under- or overapplied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Assume that Bonita prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round % of total answers to 1 decimal places, e.g. 52.7% and other answers to 0 decimal places e.g. 5,275.) Ending Balance % of total Allocation Adjusted Balance Work In Process $enter a dollar amount rounded to 0 decimal places enter a percentage value rounded to 1 decimal place % $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places Finished Goods $enter a dollar amount rounded to 0 decimal places enter a percentage value rounded to 1 decimal place % $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places Cost of Goods Sold $enter a dollar amount rounded to 0 decimal places enter a percentage value rounded to 1 decimal place % $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places

Bonita, Inc. manufactures ergonomically designed computer furniture. Bonita uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated Cost CC723 Computer caddy 10,000 $500,050 CH291 Chair 9,000 242,810 PS812 Printer stand 12,000 136,000 $878,860 On November 30, Bonita’s Raw Materials Inventory account totaled $136,000, and its Finished Goods Inventory totaled $536,000. Bonita applies manufacturing overhead on the basis of machine hours. The company’s manufacturing overhead budget for the year totaled $1,950,000, and the company planned to use 130,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 118,000 machine hours, total manufacturing overhead amounted to $1,818,700, and Cost of Goods Sold was $4,680,000. Bonita purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month: Job No. Materials Issued Machine Hours Direct Labor Hours Direct Labor Cost CC723 $85,000 4,250 9,600 $115,200 CH291 $7,000 650 2,400 $28,800 PS812 $110,000 4,400 14,300 $171,600 DS444 $123,000 2,200 8,700 $104,400 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. Item Units CC723 Computer caddy 10,000 CH291 Chair 9,000 DS444 Desk 5,000 Assume that Bonita sold 8,200 computer caddies, 8,000 chairs, and 4,500 desks in December. Bonita incurred $172,800 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? Overhead select an option by $enter a dollar amount Assume that Bonita closes under- or overapplied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Assume that Bonita prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round % of total answers to 1 decimal places, e.g. 52.7% and other answers to 0 decimal places e.g. 5,275.) Ending Balance % of total Allocation Adjusted Balance Work In Process $enter a dollar amount rounded to 0 decimal places enter a percentage value rounded to 1 decimal place % $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places Finished Goods $enter a dollar amount rounded to 0 decimal places enter a percentage value rounded to 1 decimal place % $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places Cost of Goods Sold $enter a dollar amount rounded to 0 decimal places enter a percentage value rounded to 1 decimal place % $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 2E: Precision Inc. manufactures wristwatches on an assembly line. The work in process inventory as of...

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Bonita, Inc. manufactures ergonomically designed computer furniture. Bonita uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs:

Job No.	Item	Units	Accumulated Cost
CC723	Computer caddy	10,000		$500,050
CH291	Chair	9,000		242,810
PS812	Printer stand	12,000		136,000
				$878,860

On November 30, Bonita’s Raw Materials Inventory account totaled $136,000, and its Finished Goods Inventory totaled $536,000. Bonita applies manufacturing overhead on the basis of machine hours. The company’s manufacturing overhead budget for the year totaled $1,950,000, and the company planned to use 130,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 118,000 machine hours, total manufacturing overhead amounted to $1,818,700, and Cost of Goods Sold was $4,680,000.

Bonita purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month:

Job No.	Materials Issued	Machine Hours	Direct Labor Hours	Direct Labor Cost
CC723	$85,000	4,250	9,600	$115,200
CH291	$7,000	650	2,400	$28,800
PS812	$110,000	4,400	14,300	$171,600
DS444	$123,000	2,200	8,700	$104,400

The following jobs were completed in December and transferred to the Finished Goods Inventory:

Job No.	Item	Units
CC723	Computer caddy	10,000
CH291	Chair	9,000
DS444	Desk	5,000

Assume that Bonita sold 8,200 computer caddies, 8,000 chairs, and 4,500 desks in December.

Bonita incurred $172,800 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much?

Overhead select an option

by $enter a dollar amount

Assume that Bonita closes under- or overapplied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Assume that Bonita prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round % of total answers to 1 decimal places, e.g. 52.7% and other answers to 0 decimal places e.g. 5,275.)

	Ending Balance	% of total	Allocation	Adjusted Balance
Work In Process	$enter a dollar amount rounded to 0 decimal places	enter a percentage value rounded to 1 decimal place %	$enter a dollar amount rounded to 0 decimal places	$enter a dollar amount rounded to 0 decimal places
Finished Goods	$enter a dollar amount rounded to 0 decimal places	enter a percentage value rounded to 1 decimal place %	$enter a dollar amount rounded to 0 decimal places	$enter a dollar amount rounded to 0 decimal places
Cost of Goods Sold	$enter a dollar amount rounded to 0 decimal places	enter a percentage value rounded to 1 decimal place %	$enter a dollar amount rounded to 0 decimal places	$enter a dollar amount rounded to 0 decimal places

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