CALCULATORPRINTER VERSION1 BACKNEXTProblem 4-30Coronado, Inc. manufactures ergonomically designed computer furniture.Coronado uses a job order costing system. On November 30, the Work inProcess Inventory consisted of the following jobs:Job No.ItemUnitsAccumulated CostCC723Computer caddy25,000$970,000CH291Chair18,000432,000PS812Printer stand25,000251,000$1,653,000On November 30, Coronado's Raw Materials Inventory account totaled$679,000, and its Finished Goods Inventory totaled $3,495,400.Coronado applies manufacturing overhead on the basis of machine hours.The company's manufacturing overhead budget for the year totaled$4,600,000, and the company planned to use 920,000 machine hoursduring the year. Through the first eleven months of the year, the companyused a total of 836,000 machine hours, total manufacturing overheadamounted to $4,284,500, and Cost of Goods Sold was $4,294,500.Coronado purchased $8,750,250 in raw materials in December andincurred the following costs for jobs in process that month:MaterialsMachineDirect LaborDirect LaborJob No.IssuedHoursHoursCostCC723$155,00013,00013,500$127,400CH291$16,8004,8003,900$43,200PS812$227,00020,40016,300$213,500DS444$260,00018,00016,500$149,000The following jobs were completed in December and transferred to theFinished Goods Inventory:Job No.ItemUnitsCC723Computer caddy25,000CH291Chair18,000DS444Desk10,000Assume that Coronado sold 16,000 computer caddies, 12,900 chairs, and4,400 desks in December. Coronado incurred $395,000 in manufacturing overhead in December.Given that expenditure, was manufacturing overhead under- oroverapplied for the year? By how much?Overheadby $LINK TO TEXTLINK TO VIDEOAssume that Coronado closes under- or overapplied overhead to the Costof Goods Sold account. Prepare the journal entry to close themanufacturing overhead account. (Credit account titles areautomatically indented when the amount is entered. Do notindent manually.)Account Titles and ExplanationDebitCreditLINK TO TEXTLINK TO VIDEOAssume that Coronado prorates under- or overapplied overhead to theappropriate accounts. Calculate the allocated amounts and adjust theaccount balances as needed. (Round % of total to 1 decimal places,e.g. 52.7% and final answers to 0 decimal places e.g. 5,275.)Allocation Adjusted BalanceWork In ProcessFinished Goods24Cost of Goods Sold $$4Click if you would like to Show Work for this question:Open Show WorkLINK TO TEXTLINK TO VIDEO

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Problem 4-30
Coronado, Inc. manufactures ergonomically designed computer furniture.
Coronado 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
25,000
$970,000
CH291
Chair
18,000
432,000
PS812
Printer stand
25,000
251,000
$1,653,000
On November 30, Coronado's Raw Materials Inventory account totaled
$679,000, and its Finished Goods Inventory totaled $3,495,400.
Coronado applies manufacturing overhead on the basis of machine hours.
The company's manufacturing overhead budget for the year totaled
$4,600,000, and the company planned to use 920,000 machine hours
during the year. Through the first eleven months of the year, the company
used a total of 836,000 machine hours, total manufacturing overhead
amounted to $4,284,500, and Cost of Goods Sold was $4,294,500.
Coronado purchased $8,750,250 in raw materials in December and
incurred the following costs for jobs in process that month:
Materials
Machine
Direct Labor
Direct Labor
Job No.
Issued
Hours
Hours
Cost
CC723
$155,000
13,000
13,500
$127,400
CH291
$16,800
4,800
3,900
$43,200
PS812
$227,000
20,400
16,300
$213,500
DS444
$260,000
18,000
16,500
$149,000
The following jobs were completed in December and transferred to the
Finished Goods Inventory:
Job No.
Item
Units
CC723
Computer caddy
25,000
CH291
Chair
18,000
DS444
Desk
10,000
Assume that Coronado sold 16,000 computer caddies, 12,900 chairs, and
4,400 desks in December.
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CALCULATOR PRINTER VERSION 1 BACK NEXT Problem 4-30 Coronado, Inc. manufactures ergonomically designed computer furniture. Coronado 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 25,000 $970,000 CH291 Chair 18,000 432,000 PS812 Printer stand 25,000 251,000 $1,653,000 On November 30, Coronado's Raw Materials Inventory account totaled $679,000, and its Finished Goods Inventory totaled $3,495,400. Coronado applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,600,000, and the company planned to use 920,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 836,000 machine hours, total manufacturing overhead amounted to $4,284,500, and Cost of Goods Sold was $4,294,500. Coronado purchased $8,750,250 in raw materials in December and incurred the following costs for jobs in process that month: Materials Machine Direct Labor Direct Labor Job No. Issued Hours Hours Cost CC723 $155,000 13,000 13,500 $127,400 CH291 $16,800 4,800 3,900 $43,200 PS812 $227,000 20,400 16,300 $213,500 DS444 $260,000 18,000 16,500 $149,000 The following jobs were completed in December and transferred to the Finished Goods Inventory: Job No. Item Units CC723 Computer caddy 25,000 CH291 Chair 18,000 DS444 Desk 10,000 Assume that Coronado sold 16,000 computer caddies, 12,900 chairs, and 4,400 desks in December.

fullscreen
Coronado incurred $395,000 in manufacturing overhead in December.
Given that expenditure, was manufacturing overhead under- or
overapplied for the year? By how much?
Overhead
by $
LINK TO TEXT
LINK TO VIDEO
Assume that Coronado 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
LINK TO TEXT
LINK TO VIDEO
Assume that Coronado prorates under- or overapplied overhead to the
appropriate accounts. Calculate the allocated amounts and adjust the
account balances as needed. (Round % of total to 1 decimal places,
e.g. 52.7% and final answers to 0 decimal places e.g. 5,275.)
Allocation Adjusted Balance
Work In Process
Finished Goods
24
Cost of Goods Sold $
$4
Click if you would like to Show Work for this question:
Open Show Work
LINK TO TEXT
LINK TO VIDEO
help_outline

Image Transcriptionclose

Coronado incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? Overhead by $ LINK TO TEXT LINK TO VIDEO Assume that Coronado 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 LINK TO TEXT LINK TO VIDEO Assume that Coronado prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round % of total to 1 decimal places, e.g. 52.7% and final answers to 0 decimal places e.g. 5,275.) Allocation Adjusted Balance Work In Process Finished Goods 24 Cost of Goods Sold $ $4 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO

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Expert Answer

Step 1

Job order costing refers to the system of allocating and assembling manufacturing costs of a single unit of output.

                 The system is used when different items are produced sufficiently distinguished from one other and each has significant cost.

 

 

Step 2

Estimated manufacturing overhead = $4,600,000

Estimated machine hours = 920,000

 

Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine hours

= 4,600,000/920,000

= $5 per machine hour

...

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