Davidson Company's manufacturing overhead account showed a $6,200 under-allocated balance on December 31, 2019. Other accounts showed the following balances on December 31, 2019: Materials inventory $50,000 WIP inventory $30,000 Finished goods inventory $20,000 COGS $100,000 Davidson adjusts COGS for the balance in manufacturing overhead. The balance in COGS after closing out the balance in manufacturing overhead is:
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A: A. Predetermined Overhead Rate = 120% Reference:
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A: Since the balance in the manufacturing overhead control account is debit balance, thus it is the…
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A: Solution Beginning work in process inventory is the inventory which was in process at the beginning…
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A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…
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A: Predetermined Manufacturing Overhead Rate = Estimated Overhead cost / Estimated Machine Hours
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A: Solution 1: Adjusted balance cost of goods sold after disposing of the under-or over-applied…
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A: Answer: e Manufacturing Overhead Control Raw Material Wages…
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A: Given: Balance on February = $ 51,250 Used direct materials = $ 256,400 Cost of indirect materials…
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A: The distribution of indirect expenses to manufactured commodities is known as overhead allocation.…
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A: Job costing is the method of allocation of cost to individual jobs.
Q: At the end of 2018, Furry Balls Co. Had the following account balances after factory overhead had…
A: Note: Credit balance of Manufacturing overhead control means overheads are overapplied.
Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: The Fielder manufacturing company uses job order costing system. The company uses machine hours to…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…
A: Solution Under applied overhead = Actual overhead - Applied overhead .
Q: The Fielder manufacturing company uses job order costing system. The company uses machine hours to…
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and…
Q: The Fielder manufacturing company uses job order costing system. The company uses machine hours to…
A: The predetermined overhead cost is calculated on the basis of total cost estimated.
Q: At the end of 2018, Furry Balls Co. had the following account balances after factory overhead had…
A: Manufacturing overhead control has a debit balance of P20,000 which means that actual overhead cost…
Q: The Fielder manufacturing company uses job order costing system. The company uses machine hours to…
A: IV. CALCULATION OF COST OF GOODS SOLD : COST SHEET FOR THE MONTH ENDING OF FEBRUARY(amount in $)…
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Q: Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and…
A: Over applied overhead = Applied Manufacturing Overhead - Actual Manufacturing Overhead = $94,000 -…
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A: Solution 20: If under or overapplied overhead is considered as immaterial, same will be closed to…
Q: he Harriott manufacturing company uses job order costing system. The company uses machine hours to…
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A: Note: It is assume that actual hours is 2,860.
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A: Manufacturing Overhead Control T-account is debited fro Actual Overheads incurred and Credited for…
Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
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A: Standard costing is the costing method, where standard or expected costs are used in calculating…
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A: Factory overhead or manufacturing overhead: The manufacturing overhead has a debit balance of…
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Q: At the end of 2018, Furry Balls Co. had the following account balances after factory overhead had…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…
A: Predetermined Manufacturing Overhead Rate=Estimated Overhead CostEstimated Machine Hours
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A: Solution a: As under or over applied overhead is considered as immaterial, therefore same will be…
Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to…
A: The overhead variance is the difference between actual overhead and applied overhead cost.
Q: What is the adjusted balance of work in process inventory after disposing of the under-or…
A: Material under or over applied overhead: when the under or over applied overhead is material to the…
Q: Madelon Lee Company's general ledger included the following items related to its manufacturing…
A: The following computations are done for Madelon Lee Company.
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- Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following: Determine the prorated amount of the overapplied factory overhead that is chargeable to each of the accounts. Prepare the journal entry to close the credit balance in Under-and Overapplied Factory Overhead.Nathan Industries had a remaining debit balance of $20,000 in its under- and overapplied factory overhead account at year-end. It also had year-end balances in the following accounts: Required: Prepare the closing entry for the $20,000 of underapplied overhead, assuming that the balance is not considered to be material. Prepare the closing entry for the $20,000 of underapplied overhead, assuming that the balance is considered to be material.Phillips Products, Inc. had a remaining credit balance of $10,000 in its under- and overapplied factory overhead account at year-end. It also had year-end balances in the following accounts: Required: Prepare the closing entry for the $10,000 of overapplied overhead, assuming that the balance is not considered to be material. Prepare the closing entry for the $10,000 of overapplied overhead, assuming that the balance is considered to be material.
- Renfro, Inc. was franchised on January 1, 2016. At the end of its third year of operations, December 31, 2018, management requested a study to determine what effect different materials inventory costing methods would have had on its reported net income over the three-year period. The materials inventory account, using LIFO, FIFO, and weighted average, would have had the following ending balances: a. Assuming the same number of units in ending inventory at the end of each year, were material costs rising or falling from 2016 to 2018? b. Which costing method would show the highest net income for 2017? c. Which method would show the lowest net income for 2018? d. Which method would show the highest net income for the three years combined?ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR UNDERAPPLIED/OVERAPPLIED FACTORY OVERHEAD Prepare the December 31 adjusting journal entries for Keiser Company. Data are as follows: (a) Factory overhead is applied at a rate of 80% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs still in process totaled 7,000. (b) A physical count of factory supplies at the end of the year shows that 3,750 of factory supplies were used during the year. (c) A review of the insurance policy files shows that 4,360 of insurance on the factory building and equipment has expired. (d) Depreciation expense for the year on the factory building was 9,400 and on factory equipment was 11,600, a total of 21,000. (e) The factory overhead account has a debit balance of 146,700 and a credit balance of 143,200 [after recording adjustments (a) through (d)]. Use Cost of Goods Sold for this adjustment. Was factory overhead underapplied or overapplied for the year?ADJUSTING ENTRIES INCLUDING ADJUSTMENT FOR UNDERAPPLIED/OVERAPPLIED FACTORY OVERHEAD Prepare the December 31 adjusting journal entries for Evanoff Company. Data are as follows: (a) Factory overhead is applied at a rate of 60% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs still in process totaled 8,000. (b) A physical count of factory supplies at the end of the year shows that 5,100 of factory supplies were used during the year. (c) A review of the insurance policy files shows that 6,500 of insurance on the factory building and equipment has expired. (d) Depreciation expense for the year on the factory building was 9,000 and on factory equipment was 13,500, a total of 22,500. (e) The factory overhead account has a debit balance of 187,600 and a credit balance of 189,500 [after recording adjustments (a) through (d)]. Use Cost of Goods Sold for this adjustment. Was factory overhead under- or overapplied for the year?
- 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?On August 1, Cairle Companys work-in-process inventory consisted of three jobs with the following costs: During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Required: 1. Calculate the predetermined overhead rate based on direct labor cost. 2. Calculate the ending balance for each job as of August 31. 3. Calculate the ending balance of Work in Process as of August 31. 4. Calculate the cost of goods sold for August. 5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairles sales revenue for August.The adjusted trial balance for Appleton Appliances, Ltd. on June 30, the end of its first month of operation, is as follows: The general ledger reveals the following additional data: a. There were no beginning inventories. b. Materials purchases during the period were 23,000. c. Direct labor cost was 18,500. d. Factory overhead costs were as follows: Required: 1. Prepare a statement of cost of goods manufactured for June. 2. Prepare an income statement for June. (Hint: Check to be sure that your figure for Cost of Goods Sold equals the amount given in the trial balance.) 3. Prepare a balance sheet as of June 30. (Hint: Do not forget Retained Earnings.)
- The post-closing trial balance of Custer Products, Inc. on April 30 is reproduced as follows: During May, the following transactions took place: a. Purchased raw materials at a cost of 45,000 and general factory supplies at a cost of 13,000 on account (recorded materials and supplies in the materials account). b. Issued raw materials to be used in production, costing 47,000, and miscellaneous factory supplies costing 15,000. c. Recorded the payroll and the payments to employees as follows: factory wages (including 12,000 indirect labor), 41,000; and selling and administrative salaries, 7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.) d. Distributed the payroll in (c). e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. f. Incurred other expenses totaling 11,000. One-fourth of this amount is allocable to the office function. g. Transferred total factory overhead costs to Work in Process. h. Completed and transferred goods with a total cost of 91,000 to the finished goods storeroom. i. Sold goods costing 188,000 for 362,000. (Assume that all sales were made on account.) j. Collected accounts receivable in the amount of 345,000. k. Paid accounts payable totaling 158,000. Required: 1. Prepare journal entries to record the transactions. 2. Set up T-accounts. Post the beginning trial balance and the journal entries prepared in (1) to the accounts and determine the balances in the accounts on May 31. 3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)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.Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?