Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Rundle Corporation manufactures model airplanes. The company purchased for $143,000 automated production equipment that can make the model parts. The equipment has a $11,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Credit Depreciation Expense Credit Manufacturing Overhead Debit Credit

Exercise 11-8A (Algo) Recording manufacturing overhead costs in T-accounts LO 11-2 Rundle Corporation manufactures model airplanes. The company purchased for $143,000 automated production equipment that can make the model parts. The equipment has a $11,000 salvage value and a 11-year useful life. Required a. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment. Accumulated Depreciation Debit Debit Credit Depreciation Expense Credit Manufacturing Overhead Debit Credit

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter10: Long-term Assets: Fixed And Intangible

Section: Chapter Questions

Problem 10.5CP: Communication Godwin Co. owns three delivery trucks. Details for each truck at the end of the most...

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. Problems Problem 1 ( Flow of an accounting for the manufacturing company ) The following events took place at the Barton Manufacturing Corporation for a . the current year : 1. Purchased P80,000 in direct materials . 2. Incurred labor costs as follows : Direct labor , P42,000 . b . Supervisory labor , P11,500 ( part of manufacturing overhead ) . 3. Purchased manufacturing equipment for P67,200 . 4. Other manufacturing overhead was P80,500 , excluding supervisory labor . 5. Transferred 70 percent of the materials purchased to work in process . 6. Completed work on 60 percent of the goods in process . Costs are equally across all work in process . 7. Sold 90 percent of the completed goods . assigned There were no beginning balances in the inventory accounts . All costs incurred were debited to the appropriate account and credited to accounts payable . Required : 1. Prepare journal entries to reflect these events . 2. Prepare T - accounts to show these events . 3. Prepare a cost of…
Question No. 1FJW Manufacturing Co. produces only one product. You have obtained the following information from the corporation’s books and records for the year ended December 31, 2021:a. Total manufacturing cost during the year was $1,000,000, including direct materials, directlabor, and factory overhead.b. Cost of goods manufactured during the year was $970,000.c. Factory overhead charged to work in process was 75% of direct labor cost and 27% of thetotal manufacturing cost.d. The beginning work in process inventory, January 1, was 40% of the ending work inprocess inventory, December 31.Required:Prepare a statement of cost of goods manufactured for the year ended December 31 for FJW Manufacturing company.
Under- and overapplied overhead (LO 6) Kim-Brooks, Inc. makes costumes for movies and television shows. Brooks Kimberly, the company's owner, prepared the following estimates for the upcoming year: Manufacturing overhead cost $800,000 Direct labor hours 50,000 Direct labor cost $250,000 Machine hours 40,000 Required a.Assume that Kim-Brooks applies manufacturing overhead on the basis of direct labor hours. During the year, 49,800 direct labor hours were worked. How much overhead was applied to work in process? If actual manufacturing overhead for the year was $792,000, was overhead under- or overapplied during the year? By how much? bAssume that Kim-Brooks applies manufacturing overhead on the basis of direct labor cost. During the year, $245,000 in direct labor cost was incurred. How much overhead was applied to work in process during the year? If actual manufacturing overhead for the year was $792,600, was overhead under- or overapplied during the year? By how…
Exercise 11-4A (Algo) Calculating applied overhead LO 11-2 Stuart, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation $ 191,000 Supplies 20,000 Materials handling 33,400 Property taxes 14,800 Production setup 19,800 Rent 45,000 Maintenance 39,300 Supervisory salaries 315,100 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 215,000 and for machines were 128,000.Required Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 143,000. (Do not round intermediate calculations.)
TB MC Qu. 7-31 (Algo) The following events took place at a manufacturing... The following events took place at a manufacturing company for the current year: (1) Purchased $110,000 in direct materials. (2) Incurred labor costs as follows: (a) direct, $71,000 and (b) indirect, $28,600. (3) Other manufacturing overhead was $122,000, excluding indirect labor. (4) Transferred 75% of the materials to the manufacturing assembly line. (5) Completed 60% of the Work-in-Process during the year. (6) Sold 80% of the completed goods. (7) There were no beginning inventories. What is the company's Cost of Goods Sold? Multiple Choice : A) $145,968.00. B) $243,280.00. C) $182,460.00. D) $304,100.00.
1 part A: Determine the machine supplies cost and depreciation for January. 1 part b: Using the high-low method, analyze Metcalf’s plant maintenance cost and calculate the monthly fixed portion and the variable cost per direct-labor hour. 1 part c: Assume that present cost behavior patterns continue into the latter half of the year. Estimate the total amount of manufacturing overhead the company can expect in November if 29,400 direct-labor hours are worked.
Exercise 4: ABC Electrical Company has the following records for the period ended 31 December 2019. Total production units 7500 units Material purchased OMR 55000 Inventories, 1 January 2019: Materials OMR 2000 Work-in-process OMR 20000 Finished goods OMR 10000 Direct labor OMR 105000 Factory overhead OMR 75000 Inventories, 31 December 2019: Material OMR 5000 Work-in process OMR 10000 Finished goods 1000 units Finished goods are valued at the current unit 1/Schedule of cost of goods manufactured
Question 2: ABC Company has the following information for the period ended 31 December 2020. Direct material purchased OMR 360000 Direct labor OMR 200000 Factory maintenance OMR 29000 Power and heat—factory OMR 18500 Direct Expenses 15 % of the direct labor cost Indirect factory labor OMR 21000 Freight In OMR 7000 Depreciation - Factory OMR 22300 Advertisement expenses OMR 8500 Inventories, 1 January 2020: Direct Material OMR 41700 Work-in-process…
Exercise 2-1 (Algo) Compute a Predetermined Overhead Rate [LO2-1] Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 38,000 direct labor-hours would be required for the period’s estimated level of production. The company also estimated $502,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris’s actual manufacturing overhead cost for the year was $645,280 and its actual total direct labor was 38,500 hours. Required: Compute the company’s plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) predetermined overhead rate: per DLH
QuestionQ# 1: Accounting for Manufacturing Concern The following data from the just completed year are taken from the accounting records of KentonCompany:Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000Required:1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold.3. Prepare an income statement
6.Disposition of Over- or Underapplied Overhead. The following information is available concerning theinventory and cost of goods sold accounts of PGA Company at the end of the most recent year:Work in Finished Cost of GoodsProcess Goods SoldDirect material .............................................................................. $ 5,000 $ 8,000 $ 11,000Direct labor ................................................................................... 6,000 15,000 15,000Applied overhead ......................................................................... 4,000 12,000 24,000Year-end balance.......................................................................... $ 15,000 $ 35,000 $ 50,000Applied overhead has already been closed to Factory Overhead Control.Required:Give the journal entry required to close Factory Overhead Control, assuming:(1) Overapplied overhead of $10,000 is to be allocated to inventories and Cost of Goods Sold in proportionto the balances in those…
QUESTION 1 QUESTION 1 – JOB ORDER COSTING Johnson Manufacturing company, a manufacturer of custom-made drones, uses a job order cost system to accumulate costs in its manufacturing plant. The company allocates manufacturing overhead on the basis of direct labour hours. The business expects to incur $ 3,500,000 of manufacturing costs during the year and to use 2,000,000 direct labour hours. The company’s inventory balances on April 1, 2022 ( the start of its fiscal year), were as follows: Raw Materials $ 32,000 Work in process 20,000 Finished Goods 48,000 During the year, the following transactions were completed: Raw materials were purchased on account, $ 170,000. Raw materials were issued from the storeroom for use in production, $ 180,000 ( 80 percent direct and 20 percent indirect). Employee salaries and wages were accrued as follows: direct labour, $ 200,000; indirect labour, $ 82,000; and selling and administrative salaries, $ 90,000. Utility costs were…