Compute the actual manufacturing overhead and applied manufacturing overhead
Q: Explain in narrative form the flow of direct materials, direct labor, and factory overhead cost…
A: Direct material: Direct material cost indicates the purchase price of raw material that is used in…
Q: Conversion cost consist of A) direct materials and direct labour B) direct labour and manufacturing…
A: There are two types of costs - 1. Prime Cost 2. Conversion Cost This costs are required to prepare…
Q: Describe fixed manufacturing overhead under absorption costing.
A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…
Q: Explain fixed manufacturing overhead.
A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…
Q: Why is industrial overhead calculated using direct labor
A: This question explains about industrial overhead that which is using direct labor:
Q: Which of these are factory overhead
A: Factory overhead includes: Rent cost on factory equipment Factory utilities…
Q: The basic similarities between job order cost and process cost systems indude all of the following…
A: Job order cost system is suitable for the business which produces the produced based on customer…
Q: In a process costing system, manufacturing overhead applied is usually recorded as a debit to: 7. A.…
A: Finished goods comprises of the units completed and sold and the opening and closing inventories.…
Q: Explain manufacturing overhead costs.
A: Manufacturing overheads costs refer to the amount of cost incurred as indirect expenses for…
Q: total manufacturing cost assigned to Job
A: Rate of fixed manufacturing overhead per machine-hour = Estimated total fixed manufacturing…
Q: Direct Material Used Factory Overhead Prime Cost
A: Prime cost means the addition of direct material and direct labor and other direct expenses.…
Q: amount of overheads allocated to product Apex
A: Estimated annual overhead cost for set up (A) RO 440,000 Number of set ups (B) 4,000 Overhead…
Q: to underapplied manufacturing overhead ds Soldu
A: Underapplied manufacturing overheads will be closed out by either debiting Cost of Goods Sold or by…
Q: Manufacturing overhead is
A: Predetermined overhead application rate is - (Estimated overhead costs)/(Total Direct labours) Note…
Q: Direct material Direct labor Overhead Total
A: The overheads are applied to production on the basis of predetermined overhead rate. As per…
Q: Using Traditional Method of costing using direct labor hours as basis of applying overhead, what is…
A: Using traditional method of costing, cost of product = Prime cost + overhead cost allocated on the…
Q: What is Journal entry actual manufacturing overhead costs and applied manufacturing overhead costs.…
A: Actual manufacturing overhead costs: Actual expense incurred includes salaries payable, supplies,…
Q: e activity-based factory overhead per unit f
A: Under activity-based costing technique costs are assigned to each product based on cost drivers…
Q: manufacturing overhead handled in a process cost system
A: Indirect cost is the cost that is not directly involved in the production process of the company.
Q: Calculate the total absorbtion rate used to apportion manufacturing overhead by?
A: The absorption rate is assigned according to the various allocation grounds. Hours of direct work…
Q: Explain cost accounting and its functions as well the distinguishing features of cost accounting…
A: Cost accounting is an important branch of accounting, which lays emphasis on accumulation and…
Q: Overheads applied are calculated by:
A: Applied overheads are an indirect cost that is directly related to the manufacturing of products but…
Q: Explain manufacturing activities and the flow of manufacturing costs
A: Manufacturing activity: Manufacturing activity comprises of materials, production and sales…
Q: Record the application of manufacturing overhead to production. 1
A: 1) Overhead rate = $182,400/19000 = 9.60 per labor hour Journal entry Transaction General Journal…
Q: Define the term manufacturing overheads.
A: Manufacturing overhead is all indirect costs incurred during the production process. This overhead…
Q: What is Job order cost accounting. Compare it to Process cost accounting.
A: Cost accounting is a sort of accounting, the main objective of which is to ascertain the costs of…
Q: how to allocate manufacturing overhead by department?
A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…
Q: and factory overhead. Make the following calculations: a. Equivalent units for direct materials b.…
A:
Q: Explain how overhead is assigned to production when a predetermined overhead rate is used?
A: Overhead is kind of cost or expenditure which is not directly related to manufacturing but somehow…
Q: In a process cost system, machinery depreciation expense incurred is debited to a. manufacturing…
A: Process costing is a part of cost analysis which is used by organizations that have more than 1…
Q: Preparing a summary journal entry to record allocation of manufacturing overhead
A: Preparation of a summary journal entry to record allocation of manufacturing overhead. We have,The…
Q: Journal entry actual manufacturing overhead costs and applied manufacturing overhead costs
A: Manufacturing overheads are the indirect costs incurred in the manufacturing of products. It…
Q: Compute the Manufacturing Overhead Applied to Jobs;
A: Overhead cost allocation: It is the process of allocating the estimated overhead of a company to its…
Q: Describe the flow of costs through a process costing system.
A: Definition: Process costing: Process costing is a method of cost accounting in which all costs are…
Q: ick the icon to view the information.) he requirements rement 1. Compute the actual and budge…
A: In the given question overhead rate is calculated on the basis of direct Labor cost. Therefore…
Q: Describe the types of manufacturing overhead.
A: Manufacturing Expenses or Overhead are the indirect type of costs that a business incurs for a…
Q: Should design of cost be calculated in factory overhead costs incurred? Explain why
A: The answer for the question on cost design is discussed hereunder : Design of Cost aims at reducing…
Q: how to calculate unit manufacturing cost
A: How to calculate unit manufacturing cost.
Q: Job order costing and process costing both: O a. All the given answers are correct. O b. assign…
A: Job Order Costing:-It tracks prime cost to assign direct material and direct labor cost to the…
Q: Compute the actual manufacturing overhead. Compute the applied manufacturing overhead. Compute the…
A: Solution:- Calculation of the actual manufacturing overheads.
Q: How to compute manufacturing overhead?
A: In order to manufacture the product, various indirect expenses are incurred such as indirect…
Q: During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to…
A: Cost accounting is one of the useful branch of accounting that is being used for the purpose of…
Q: Explain the similarities between a job order and a process cost system and features of process cost…
A: The concept of process cost accounting involves accounting of costs of an enterprise based on the…
Q: Manufacturing Overhead: Total payments for manufacturing overhead Selling and Administrative…
A: Part 1:
Q: During production how are the costs in process costing accumlated.
A: Process costing system is a costing system in which product goes through various processes to…
Q: Explain an example of manufacturing overhead.
A: Manufacturing overhead costs: “The costs, which do not relate directly with the manufacturing of…
Compute the actual manufacturing
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- The records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.Recording issuing of materials Materials issued for the current month are as follows a. Determine the amount of materials transferred lo Work in Process and Factory Overhead for the current month. b.Illustrate (he effect on the accounts and financial statements of the materials transferred in (a).:For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
- Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.Selected information from Skylar Studios shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2
- Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)Selected information from Hernandez Corporation shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
- A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)Aero Aluminum Inc. uses a process cost system. The records for May show the following information: Using the data in P5-9, draft the journal entries to record: 1. The cost of goods received from Rolling during the month. 2. The production costs incurred in Converting during the month. 3. The cost of goods completed and transferred to finished goods during the month.