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Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing sy applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,477,300, and m budgeted 93,500 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the bes August. These transactions were recorded during August a. Purchased 6,300 square feet of oak on account at $26 per square foot. b. Purchased 180 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 4,410 square feet of oak and 44 gallons of glue for production. d. Incurred and paid payroll costs of $215,200. Of this amount, $59,000 were indirect labor costs; direct labor personnel ear per hour. e. Paid factory utility bill, $17,440 in cash. L. August's Insurance cost for the manufacturing property and equipment was $4,150. The premium had been paid in March. g. Incurred $9,345 depreciation on manufacturing equipment for August. h. Recorded $2,725 depreciation on an administrative asset. L Paid advertising expenses in cash, $6,085. J, Incurred and paid other factory overhead costs, $14,800. k. Incurred miscellaneous selling and administrative expenses, $14,225. LApplied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $152,500 during the month. n. Sales on account in August were $142,800. The Cost of Goods Sold was $118,500. Required: 1. Compute the firm's predetermined factory overhead rate for the year

Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing sy applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,477,300, and m budgeted 93,500 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the bes August. These transactions were recorded during August a. Purchased 6,300 square feet of oak on account at $26 per square foot. b. Purchased 180 gallons of glue on account at $36 per gallon (indirect material). c. Requisitioned 4,410 square feet of oak and 44 gallons of glue for production. d. Incurred and paid payroll costs of $215,200. Of this amount, $59,000 were indirect labor costs; direct labor personnel ear per hour. e. Paid factory utility bill, $17,440 in cash. L. August's Insurance cost for the manufacturing property and equipment was $4,150. The premium had been paid in March. g. Incurred $9,345 depreciation on manufacturing equipment for August. h. Recorded $2,725 depreciation on an administrative asset. L Paid advertising expenses in cash, $6,085. J, Incurred and paid other factory overhead costs, $14,800. k. Incurred miscellaneous selling and administrative expenses, $14,225. LApplied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $152,500 during the month. n. Sales on account in August were $142,800. The Cost of Goods Sold was $118,500. Required: 1. Compute the firm's predetermined factory overhead rate for the year

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 14P: Abbey Products Company is studying the results of applying factory overhead to production. The...
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Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,477,300, and management budgeted 93,500 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August a. Purchased 6,300 square feet of oak on account at $26 per square foot. b. Purchased 180 gallons of glue on account at $36 per gallon (indirect material). d. Incurred and paild payroll costs of $215,200. Of this amount, $59,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $17,440 in cash. 1. August's insurance cost for the manufacturing property and equipment was $4,150. The premium had been paid in March. Incurred $9,345 depreciation on manufacturing equipment for August. h. Recorded $2,725 depreciation on an administrative asset. L Paid advertising expenses in cash, $6,085. J, Incurred and paid other factory overhead costs, $14,800. k. Incurred miscellaneous selling and administrative expenses, $14,225. LApplied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $152,500 during the month. n. Sales on account in August were $142,800. The Cost of Goods Sold was $118,500. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare Journal entries to record the August events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August. Complete this question by entering your answers in the tabs below. Reg 2 Reg 4 COGM Reg 4 COGS Reg 1 Reg Reg 5 Reg 6 Compute the firm's predetermined factory overhead rate for the year. (Round your answer to 2 decimal places.) Predetarmined overhead rate per direct labor-hour Reg 2 >
Transcribed Image Text:Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,477,300, and management budgeted 93,500 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August a. Purchased 6,300 square feet of oak on account at $26 per square foot. b. Purchased 180 gallons of glue on account at $36 per gallon (indirect material). d. Incurred and paild payroll costs of $215,200. Of this amount, $59,000 were indirect labor costs; direct labor personnel earned $22 per hour. e. Paid factory utility bill, $17,440 in cash. 1. August's insurance cost for the manufacturing property and equipment was $4,150. The premium had been paid in March. Incurred $9,345 depreciation on manufacturing equipment for August. h. Recorded $2,725 depreciation on an administrative asset. L Paid advertising expenses in cash, $6,085. J, Incurred and paid other factory overhead costs, $14,800. k. Incurred miscellaneous selling and administrative expenses, $14,225. LApplied factory overhead to production on the basis of direct labor hours. m. Produced completed goods costing $152,500 during the month. n. Sales on account in August were $142,800. The Cost of Goods Sold was $118,500. Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare Journal entries to record the August events. 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31. 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold. 5. Compute the amount of overapplied or underapplied overhead that should be prorated to Work-in-Process, Finished Goods and Cost of Goods Sold. 6. Prepare the income statement for August. Complete this question by entering your answers in the tabs below. Reg 2 Reg 4 COGM Reg 4 COGS Reg 1 Reg Reg 5 Reg 6 Compute the firm's predetermined factory overhead rate for the year. (Round your answer to 2 decimal places.) Predetarmined overhead rate per direct labor-hour Reg 2 >
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