During May, Lockmiller Company incurred factory overhead costs as follows: indirect materials, $34,500; indirect labor, $80,700; utilities cost, $13,400; and factory depreciation, $47,600. Required: Journalize the entry to record the factory overhead incurred as of May 30. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Q: 5) Determine the over or under absorption of overhead for Mixing department. Show your detailed…
A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…
Q: Bee Company's net income for 2018, 2019, and 2020 were P100,000; P145,000; and P185,000…
A: If there were any omissions, determine it pertains to an accrual or deferral of an asset or…
Q: SLO-3.2. Which of the following is NOT a type of owner's equity? ORent Income OWithdrawls OOwner's…
A: The owners' equity alludes to the excess of the company's assets over its obligations. It would be…
Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…
A: The cost of transportation-in, import duty, and insurance during shipment are part of the cost of…
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for prepaid cell…
A: LIFO means last in first out . It is a method to value the inventory and cost of goods sold. Gross…
Q: On December 31, 2021, Maroon Co. leased an equipment with a cost of P2,000,000 to Green Co. for…
A: Residual value is of two types-one is guaranteed residual value and the other is unguaranteed…
Q: 38. The company decides to purchase the part for P8 per unit from another supplier and rents its…
A: Increase (decrease) in costs on purchasing from supplier = (Purchase costs per unit - Relevant…
Q: On January 2, 2021, Harlan Company purchased a patent for $48,000. The patent has an estimated…
A: A patent appears to be a legal privilege awarded by a sovereign authority to an inventor. In…
Q: What is the QBI deduction?
A: QBI Deduction: The net amount of eligible types of income, profit, depreciation, and reduction from…
Q: What is a dividend
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the questions…
Q: 3) Aira Company reported gross payroll of P600,000 for the month of January. The entity paid the…
A: Payroll It is important to maintain the payroll process by the management which is distributed to…
Q: The company reported a current ratio of 2.1 and 2.22 as of December 31, 2020 and December 31, 2021…
A: Answer:- Liabilities definition:- A liability is anything that a person or corporation owes,…
Q: 4. Comparability between enterprises is more difficult to obtain than comparability within a single…
A: There are various ratios which helps in calculating the financial position of the company and…
Q: 18) On July 1, 2022, Jenks Company purchased the copyright to Jackson Computer tutorials for…
A: As per IAS 38, Intangible assets, Intangible assets with limited useful life are to be amortized…
Q: Calculate property taxes collected ratio The statistical section of the city of Tallahassee's CAFR…
A: Collection Rate Percentage = (Tax Collected/Tax Levied)X100…
Q: In the previous year, a company’s total fixed manufacturing overhead costs were P13,600 and its…
A: Lower in operating income using variable costing versus absorption costing = Increase in ending…
Q: 6. While determining the most profitable company from the given number of companies, which of the…
A: Ratio analysis is one of the tools to analyze financial statements.
Q: A company purchased land in 1950 for $10,000. Although the land is now worth $300,000 the accounting…
A: The monetary unit principle states that you only record business transactions that can be expressed…
Q: River Textile Mill was inspected by OSHA and found to be in violation of a number of safety…
A: The answer has been mentioned below.
Q: What is the amount of net income after tax that Vignette Company should report for the year 2021?…
A: The percentage of completed contract method is used to account for long-term construction contracts…
Q: 1. A warehouse building is constructed at a first cost of P7.5M and with an estimated salvage value…
A: Depreciation means the amount of expenses written off from the value of fixed assets used in…
Q: A mutual fund has an offer price of $14.06. If you invested a lump sum of $14,000, how many shares…
A: The mutual fund represents the fund that is invested in various commodities in the market i.e.,…
Q: A taxpayer calculated federal tax of $25,712 prior to their non-refundable tax credits. The credits…
A: Non-refundable tax credits are such that can be set off from federal tax payable, directly. Excess…
Q: At the beginning of current year, Definite Company acquired the following assets: Residual Useful…
A: Depreciation represents the reduction in the hysterical cost of the asset acquired by the business…
Q: ing by Doing E
A: Market demand function : Q = 780 - p p = 780 - Q Where ,Q = Q1+ Q2+ Q3 p = 780 - ( Q1 + Q2 + Q3 )…
Q: Do you believe that the events immediately following GM's bankruptcy alleviated the concerns that…
A: Answer:- In the annual report of the GM. The corporation is recurring losses from the operations,…
Q: on the 4. Partnership Activities. (Obj. 2) Indicate how each of the following items is reported…
A: Partnership taxable income is the one which is to be paid by the partners as per the percentage…
Q: Tiger Drug Store carries a variety of health and beauty aids, includi Unit Sales Dollar Sales…
A: Purchase budget is the budget prepared at the beginning of the period that shows the inventory…
Q: 5. The proportion of assets provided by creditors compared to that provided by owners Your answer 6.…
A: Ratio analysis includes a comparison of the elements of financial statements by keeping one at the…
Q: Andy Company records its purchases at gross but wishes to change to recording purchases at net.…
A: WHEN PURCHASES ARE RECORDED USING THE NET METHOD , PURCHASES AND ACCOUNTS PAYABLE ARE RECORDED AT AN…
Q: SLO-5.3. If the credit terms are 2/10, n/30, the credit period is days. 3 010
A: Introduction: Credit period: In general sales can be of two types Credit sales and cash sales. With…
Q: Is there a financial impact on the total cost of the project, and if so, how much of an impact? The…
A: NOTES: Duration= 12months, Regular employees =7, Rate = 51 per hour, overhead rate = 150%, Working…
Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…
A: Unamortized discount on bonds payable of 333,906
Q: In its 2021 statement of retained earnings, what amount should Tricky report as the effect of this…
A: As per IAS 8, Accounting policies, changes in Accounting estimates and errors A change in inventory…
Q: Tables for Life (TFL) produces wooden tables since the beginning of 2021. It sources high quality…
A: The concern has to incur the fixed cost of labour, rent and depreciation, whether the 20 tables are…
Q: Accounts Receivable and Inventory Ratios Bell Company had the following current assets at…
A: Account receivables turnover ratio means the number of times account receivables is revolved during…
Q: SLO-4.1. Which of the following would not qualify as an internal control procedure within a…
A: Internal controls are the procedures ensuring that the financial reporting done by the business is…
Q: What is the least appropriate explanation for the activity ratio? 1.If a company's resources are…
A: ACTIVITY RATIO IS USED TO MEASURE THE PERFORMANCE OF COMPANY. IT STATES THAT HOW EFFICIENTLY THE…
Q: Riley Corp. acquired equipment on January 2, Year 1, at a cost of $570,000 with an estimated useful…
A: In straight line method the depreciation expense will be same for each year of its useful life.…
Q: II. Directions: Problem Solving: Prepare Trial Balance for the accounts of Corny Enterprises as of…
A: A trial balance seems to be a statement that shows the sums, or totals of debits as well as credits,…
Q: Given the following account balances at year end, compute the total intangible assets on the balance…
A: INTANGIBLE ASSETS ARE ASSETS WHICH HAVE NO PHYSICAL SUBSTANCE AND CANNOT BE SEEN AND TOUCHED.
Q: Walberg Associates, antique dealers, purchased goods for $39,300. Terms of the purchase were FOB…
A: As per IAS 2, Inventories, Cost of inventory includes purchase price, cost of…
Q: Required information Problem 9-5A (Static) Computing and analyzing times interest earned LO A1 [The…
A: The ability to pay interest is measured by Times Interest ratio. Higher the ratio the better will be…
Q: On October 1, 2021, Draper James paid $850,000 for equipment having an estimated useful life of 5…
A: Depreciation expense under sum of years digit method Depreciation base * remaining useful life / sum…
Q: For items 22 to 24: The Warner Company sells its only pro the variable costs amount to P21 per unit.…
A: Break even point means the situation where there is no profit no loss. It means that a point where…
Q: Appendix: EPR Rachelle Razer has taken a job as production superintendent in a plant that makes,…
A: EPR is determined by taking under-root of the division of multiple of 2, annual quantity, and set up…
Q: Which of the following is not a financial statement? O Bank statement Income statement Balance sheet…
A: Financial statement includes 1) Balance sheet 2) income tax 3) cash flow statement 4) statement of…
Q: Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities…
A:
Q: Anderson Foods produces spécialty soup sold in jars. The projected sales in dollars and jars for…
A: Formula: Desired ending inventory =Following month sales units x 25% Beginning inventory = Current…
Q: On January 1, 2021, Maroon Company entered into a five-year nonrenewable operating lease, commencing…
A: The operating lease is a lease agreement where the lessee takes the assets on rent from the lessor…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Step by step
Solved in 2 steps
- Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.(1) calculate the overhead assigned rate (note their order from above): Overhead Cost Items Estimated Overhead Cost Driver Activity Levels Activity Rate Purchasing $70,000 ? ? ? Handling materials $33,350 ? ? ? Machine setups $70,500 ? ? ? Inspections $25,500 ? ? ? Utilities $45,000 ? ? ? (2) calculate the total order cost (again, note their order from above): Activity Cost Drivers Activity Levels Activity Rate Assigned Costs ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Order Cost ?C15Q5 Need help Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. 2. Using the direct method, rework requirement 1. 3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Direct Manufacturing Labor–Hours Machining Assembly Job 88 23 2 Job 89 5 22 4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements…
- The manufacturing operations of Cullumber, Inc. had the followInventoriesRaw MaterialsWork in ProcessFinished GoodsJanuary 1Cost of goods sold$15.36026,88017,920GA$January 31Cullumber transferred $371,200 of completed goods out of WoCompute the cost of goods sold.Tavthook and Media$16.64029,44020,480 Please don't provide solutions in an image format thank youAll applicable Mini-Exercises are available with McGraw-Hill’s Connect™Accounting. Total manufacturing costs Acme, Inc., incurs the following costs during May: accounting Mini-Exercise 13.1LO 3, 4 Sales expense. . . . . . . . . . . . . . . . $11,500Direct labor . . . . . . . . . . . . . . . . . . 26,000Factory supplies . . . . . . . . . . . . . . 2,500Advertising . . . . . . . . . . . . . . . . . . 2,800Raw material used . . . . . . . . . . . . 18,000Administrative expense . . . . . . . $ 21,500Plant depreciation . . . . . . . . . . . 6,200Indirect labor. . . . . . . . . . . . . . . 8,000Utilities . . . . . . . . . . . . . . . . . . . . 10,000 **75% of this amount relates to the factory.Required:Calculate Acme’s total manufacturing costs for May.Overheads cost analysisRProduction 4 400 000Materials handling 1 000 000Set-up 1 050 000Quality control 1 900 000Materials procurement 400 000Cost driver analysisCost drivers Product A Product B TotalDirect labour hours 320 000 180 000 500 000Number of set-ups 420 280 700Materials movements 700 300 1 000Number of orders 1 300 700 2 000Number of inspections 1 140 760 1 900 Annual outputProduct A 200 000 unitsProduct B 100 000 units Use the information provided below to calculate the overhead cost per product using the followingcosting systems: Traditional Absorption Costing, using direct labour hours as the basis for allocation.…
- eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $fill in the blank 1 $fill in the blank 2 Total overhead (traditional) fill in the blank 3 fill in the blank 4 Difference $fill in the blank 5 $fill in the blank 61. Supply the missing data in the following cases, each case is independent of the others. Schedule of Cost of Goods ManufacturedDirect materials . . . . . . . . . . . . . . . . . . . . . .P 4,500Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . ?Manufacturing overhead . . . . . . . . . . . . . . . 5,000Total manufacturing costs . . . . . . . . . . . . . . 18,500Beginning work in process inventory . . . . . 2,500Ending work in process inventory . . . . . . . . ?Cost of goods manufactured . . . . . . . . . . . 18,000 Income StatementSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P 30,000Beginning finished goods inventory . . . . . 1,000Cost of goods manufactured . . . . . . . . . . . 18,000Goods available for sale . . . . . . . . . . . . . . . ?Ending finished goods inventory . . . . . . . . ?Cost of goods sold . . . . . . . . . . . . . . . . . . . . 17,000Gross margin . . . . . . . . . . . . . . . . . . . . . . . . 13,000Selling and administrative…A schedule of cost of goods manufactured shows:a. Materials used, P600,000b. Direct labor, 1,600,000c. Overhead costs, P 1,280,000d. Work in process, ending inventory, P280,000Compute for (1) the rate of factory overhead to direct labor cost, and (2) the direct materialsincluded in the work in process inventory, assuming that the direct labor in the work in processis P100,000. a. (1) 80% ; (2) P80,000b. (1) 125% ; (2) P60,000c. (1) 80% ; (2) P100,000d. (1) 125% ; (2) P100,000
- Show the solution in good accounting form. Thank you! MLB Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined overhead rate. The following information relates to MLB Inc. for the year ended December 31, 2020: Job No. 101 Job No. 102 Job No. 103 Job in Process, January 1, 2020 Direct Materials 40 000 30 000 0 Labor 60 000 40 000 0 Factory Overhead 30 000 20 000 0 Cost added during 2020 Materials 20 000 10 000 100 000 Labor 100 000 200 000 400 000 Factory Overhead ? ? ? Additional information: 1) Actual overhead for the year 2020 amounted to P350,000. 2) Jobs No. 101 and 102 were completed and transferred to finished goods during the year 2020. 3) Job No. 101 was sold during the year 2020. 4) The gross profit rate is 20% based on cost. 1. What is the total manufacturing cost for 2020? a. 1,400,000 b. 1,180,000 c. 480,000 d. 1,200,000 2. What is the cost of goods manufactured for 2020? a.…Question 1 options: Answer the following two questions using the information below:Preston Manufacturing uses a normal cost system and had the following actual data available for 20X5:Ending direct materials inventory $10,000Beginning WIP inventory 64,000Beginning finished goods inventory 58,000Direct materials purchased on account $ 70,000Direct materials used or requisitioned 90,000Direct labor cost incurred 130,000Factory overhead incurred (actual) 190,000Overhead is applied at 150 percent (1.5) of direct-labor costCost of goods manufactured 405,000Cost of goods sold 460,000The beginning balance of direct materials inventory must be: (HINT: use T-Accounts to solve)(Include "$" and "," (commas) in your answers.The ending balance of work-in-process inventory (before closing the manufacturing overhead accounts) must be:…Latta Company provided the following T-accounts for this year. Manufacturing OverheadDebit Credit(a) 488,448 (b) 407,040Balance 81,408 Work in ProcessDebit CreditBalance 9,960 (c) 758,000302,000 91,000 (b) 407,040 Balance 52,000 Finished GoodsDebit CreditBalance 38,000 (d) 664,000(c) 758,000 Balance 132,000 Cost of Goods SoldDebit Credit(d) 664,000 The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: Work in Process, ending $ 24,960Finished Goods, ending 63,360Cost of Goods Sold 318,720Overhead applied $ 407,040For example, of the $52,000 ending balance in work in process, $24,960 was applied overhead. Required:Identify reasons for entries (a) through (d).Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.Assume underapplied or overapplied overhead is closed proportionally to Work in…