WIP INVRM 1,000,000DL 3,000,000MOH 4,000,000MFG OH150,000FG INV500,000COGSRM 2,500,000RMDL2,500,000MOH3,000,000DL 8,500,000MOH 14,000,000 It is the end of the fiscal year for Sophco. The company applies ManufacturingOverhead to its inventory and cost of goods sold using a normal costingsystem and a predetermine overhead rate. At the end of the year the followingbalances are in the inventory, cost of good sold and manufacturing overheadaccounts.WIP INVFG INVCOGSRM 1,000,000RM500,000RM2,500,000DL3,000,000DLDL2,500,0008,500,000MOMOMOH4,000,000H3,000,000H14,000,000MFG OH150,000Required:©Copyrighted by Richard S. Claire 6/14/2020. All rights reserved.Page 5 of <#>Using the proration method, prorate the $150,000 of over appliedmanufacturing overhead to each account and enter the amounts into the "T"accounts above.

Detailed explanation: Balanceratioratio x 150,000Work in Process Inventory (1,000,000 +3,000,000…

Answered: WIP INV RM 1,000,000 DL 3,000,000 MOH…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....

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Similar questions

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.
OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
Selected information concerning the operations of a company for the year ended December 31 is as follows: Work in process inventories at the beginning and end of the year were zero. Beginning inventory of finished goods was 9,650 (for 1,000 units). Cost of goods sold was 174,600. What was the companys finished goods inventory cost at December 31? a. 98,050 b. 29,100 c. 29,050 d. 40,600
At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: The costs that Byford had to account for during the month of November were as follows: Required: 1. Using the weighted average method, determine unit cost. 2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory? 3. CONCEPTUAL CONNECTION Bill Johnson, the manager of Byford, is considering switching from weighted average to FIFO. Explain the key differences between the two approaches and make a recommendation to Bill about which method should be used.
Statement of cost of goods manufactured; income statement; balance sheet The adjusted trial balance for Rochester Electronics, Inc. on November 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 33,000. 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 the month of November. 2. Prepare an income statement for the month of November. (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 November 30. (Hint: Do not forget Retained Earnings.)
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Cost flow relationships The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Using the information given, determine the following missing amounts: A. Cost of goods sold B. Finished goods inventory at the end of the month C. Direct materials cost D. Direct labor cost E. Work in process inventory at the end of the month
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
The records of Anderjak Corporation contain the following information for the month of January: The company has no beginning inventory. REQUIREMENT You have been asked to prepare a variable costing (direct costing) income statement and an absorption costing income statement for the month of January. Review the worksheet VARCOST that follows these requirements.
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
High-End Products Inc. uses a standard cost system in accounting for the cost of production of its only product, Swank. The standards for the production of one unit of Swank follow: Direct materials: 10 feet of Class at $.75 per foot and 3 feet of Chic at $1.00 per foot. Direct labor: 4 hours at $12.00 per hour. Factory overhead: applied at 150% of standard direct labor costs. There was no beginning inventory on hand at July 1. Following is a summary of costs and related data for the production of Swank during the following year ended June 30: 100,000 feet of Class were purchased at $.72 per foot. 30,000 feet of Chic were purchased at $1.05 per foot. 8,000 units of Swank were produced that required 78,000 feet of Class, 26,000 feet of Chic, and 31,000 hours of direct labor at $11.80 per hour. 6,000 units of product Swank were sold. On June 30, there are 22,000 feet of Class, 4,000 feet of Chic, and 2,000 completed units of Swank on hand. All purchases and transfers are “charged in” at standard. Required: Calculate the following, using the formulas on pages 421–422 and 424 and compute the materials variances for both Class and Chic: Materials quantity variance. Materials purchase price variance. Labor efficiency variance. Labor rate variance.

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