Prepare journal entries.
Q: Cavy Company estimates that the factory overhead for the following year will be $768,900. The…
A: Predetermined overhead rate = Total estimated factory overhead / Total estimated Machine hours…
Q: Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct…
A: Answers for the given 3 requirements are as follows:
Q: Cavy Company estimates that the factory overhead for the following year will be $1,229,600. The…
A: The overhead rate is calculated as estimated overhead cost divided by estimated base activity units.…
Q: Cavy Company estimates that the factory overhead for the following year will be $976,800. The…
A: Overheads are considered as fixed and common expenses that should be allocated to the products based…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Job order costing indicates computation of total cost incurred related to each cost separately by…
Q: At the beginning of the year, a company predicts total overhead costs of $560,000. The company…
A: Formula: Applied Overhead = Total Overhead cost x ( Machine hours in the month of January / Total…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: WORKING : Overhead rate = $1,960,000 / 49,000 = 40 per direct labour hour JOB OVERHEAD APPLIED…
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: As posted multiple independent sub parts we are answering only first part kindly repost the…
Q: James Graham Manufacturing is a small manufacturer that uses machine-hours as its activity base for…
A: a) Calculation of predetermined overhead rate Predetermined overhead rate = Estimated manufacturing…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and…
Q: On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and…
A: Overhead allocation is the division of indirect costs among manufactured goods. It is required by…
Q: The Cavy Company estimates that the factory overhead for the following year will be $1,558,000. The…
A: Overheads are considered as fixed and common expenses that should be allocated to the products on…
Q: On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and…
A: Predetermined overhead rate =Estimated total overhead / Estimated machine hours = $300000/15000…
Q: Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct…
A: Predetermined overhead rate = Total estimated factory overhead costs / total estimated Direct labor…
Q: On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the…
A: A job cost sheet is a consolidation of the acquired actual costs of a job or task. The cost sheet is…
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: The manufacturing overhead is said to be overapplied when applied overhead is more than the actual…
Q: the beginning of the year, a company predicts total overhead costs of $560,000. The company applies…
A:
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing…
A: Predetermined overhead rate = Total estimated manufacturing overhead/Total estimated machine hours
Q: Johnson Incorporated is a job-order manufacturing company that uses a predetermined overhead rate…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The total…
Q: Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on…
A: Predetermined overhead rate=estimated overhead/estimated direct labour hour =$511,500/93,000 =$5.5…
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: The cost of finished goods include the cost of goods that are completed and transferred and ready…
Q: Salinger Company estimates that total factory overhead costs will be $78,000 for the year. Direct…
A: a. Predetermined Factory Overhead Rate = Total Factory Overhead Costs/ Direct Labour Hours = $78,000…
Q: Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing…
A: Manufacturing overhead consists of indirect costs incurred in the production process such as factory…
Q: Concord Company produces high-quality microscopes for education and health care uses. The company…
A: Balance in the finished goods inventory account as of March 31 will be cost of Job that has been…
Q: During the current month, a company that uses job order costing purchases $50,000 in raw materials…
A:
Q: Parker Company uses a job-order costing system and applies manufacturing overhead to jobs using a…
A: The job order costing system refers to the system of determining the cost of the product for each…
Q: oolidge Company estimates that the factory overhead for the following year will be $196726. The…
A: Manufacturing overhead refers to indirect production costs which are necessary to manufacture…
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: The journal entries are prepared to record day to day transactions of the business on regular basis.
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Cost of goods manufactured is the total costs incurred in the production of goods for a period, it…
Q: Bob Burgers allocates manufacturing overhead to jobs based on direct labor hours. The company has…
A: Predetermined manufacturing overhead rate per machine hour = Total estimated manufacturing overhead…
Q: On January 1, VYLGHA946 Corp. estimated its total overhead for the upcoming year to be $300,000 and…
A: Overapplied or underapplied overhead is the difference between actual overhead and applied overhead.…
Q: Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the…
A: Journal entry: It is prepared to record the financial and non-financial transaction of the business…
Q: James Graham Manufacturing is a small manufacturer that uses machine-hours as its activity base for…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Calculate the balance in the Finished Goods Inventory account as of March 31. Finished Goods…
A: Manufacturing overhead is applied to product /job orders using Pre-determined Overhead Rate…
Q: Cavy Company estimates that the factory overhead for the following year will be $1,066,000. The…
A: Predetermined Overhead rate = Estimated overhead / Estimated machine hours Predetermined Overhead…
Q: Shoe Glass Manufacturing Company castings and other glass parts to various customers as per order.…
A: Predetermined overhead rate = Estimated overhead / Estimated machine hours = P2,800,000 / 400000 =…
Q: Cavy Company estimates that the factory overhead for the following year will be $2,034,500. The…
A: Predetermined overhead rate = $2,034,50031,300 hours = $65 per hour Applied overhead = 2,830 hours…
Q: During March, the following transactions/events were reported by Jerico Company that uses job- order…
A: Job Order Costing: Job Order Costing is best suited where the goods and services are produced on a…
Q: Waterway Company produces high-quality microscopes for education and health care uses. The company…
A: Predetermined overhead rate = Estimated overhead / Direct labors Applied overhead = Predetermined…
Q: Shoe Glass Manufacturing Company castings and other glass parts to various customers as per order.…
A: Solution: Predetermined overhead rate = Estimated overhead / Estimated machine hours = P2,800,000 /…
Q: Bergan Company estimates that total factory overhead costs will be $1,539,000 for the year. Direct…
A: Pre-determined overhead allocate rate: It the rate of allocating the expected overheads to the…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and…
Q: Coronado Company produces high-quality microscopes for education and health care uses. The company…
A: Work in process is the cost incurred during the production but job not yet completed. Such cost…
Q: Salinger Company estimates that total factory overhead costs will be $90,000 for the year. Direct…
A: Predetermined overhead rate = Estimated overhead costsEstimated activity in allocation base
Q: Dillon Products manufactures various machined parts to customer specifications. The company uses a…
A: SOLUTION- JOURNAL ENTRY IS USED A TO RECORD A BUSINESS TRANSACTION IN THE ACCOUNTING RECORDS OF A…
Q: Custo. pany uses a job-order costing system and applies overhead costs to jobs on the basis of…
A: Since you have asked only requirement 4, I am answering it alone. If you want any specific question…
Q: During the current month, a company that uses job order costing incurred a monthly factory payroll…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: Cavy Company estimates that the factory overhead for the following year will be $1,824,500. The…
A: Solution: Overhead application rate = factory overhead / machine hours = 1824500 / 44500 = $41 per…
Q: Cavy Company estimates that the factory overhead for the following year will be $927,200. The…
A: Estimated factory overhead $9,27,200 Estimated machine hours 24400 hours Predetermined…
Prepare
ABC Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses
The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows:
a. Raw materials purchased on account, P300,000
b. Raw materials requisitioned for production, P270,000 (90% direct and 10% indirect).
c. Labor cost incurred in the factory, P190,000, of which P100,000 was direct and the balance indirect cost.
d.
e. Other manufacturing overhead costs incurred, P55,000, 50% of which paid and the balance on account.
f. Manufacturing overhead cost was applied to production on a basis of 34,000 machine-hours worked during January.
g. The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)
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- The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?Huron Manufacturing Co. uses a job order cost system to cost its products. It recently signed a new contract with the union that calls for time-and-a-half for all work over 40 hours a week and double-time for Saturday and Sunday. Also, a bonus of 1% of the employees earnings for the year is to be paid to the employees at the end of the fiscal year. The controller, the plant manager, and the sales manager disagree as to how the overtime pay and the bonus should be allocated. An examination of the first months payroll under the new union contract provisions shows the following: Analysis of the supporting payroll documents revealed the following: a. More production was scheduled each day than could be handled in a regular workday, resulting in the need for overtime. b. The Saturday and Sunday hours resulted from rush orders with special contract arrangements with the customers. The controller believes that the overtime premiums and the bonus should be charged to factory overhead and spread over all production of the accounting period, regardless of when the jobs were completed. The plant manager favors charging the overtime premiums directly to the jobs worked on during overtime hours and the bonus to administrative expense. The sales manager states that the overtime premiums and bonus are not factory costs chargeable to regular production but are costs created from administrative policies and, therefore, should be charged only to administrative expense. Required: 1. Evaluate each positionthe controllers, the plant managers, and the sales managers. If you disagree with all of the positions taken, present your view of the appropriate allocation. 2. Prepare the journal entries to illustrate the position you support, including the accrual for the bonus.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.)
- Cycle Specialists manufactures goods on a job order basis. During the month of June, three jobs were started in process. (There was no work in process at the beginning of the month.) Jobs Sprinters and Trekkers were completed and sold, on account, during the month (selling prices: Sprinters, 22,000; Trekkers, 27,000); Job Roadsters was still in process at the end of June. The following data came from the job cost sheets for each job. The factory overhead includes a total of 1,200 of indirect materials and 900 of indirect labor. Prepare journal entries to record the following: a. Materials used. b. Factory wages and salaries earned. c. Factory Overhead transferred to Work in Process d. Jobs completed. e. Jobs sold.Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
- A company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
- A company has the following transactions during the week. Purchase of $1,000 raw materials inventory Assignment of $500 of raw materials inventory to Job 5 Payroll for 20 hours with $1,000 assigned to Job 5 Factory utility bills of $750 Overhead applied at the rate of $10 per hour What is the cost assigned to Job 5 at the end of the week?Prepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.Terrills Transmissions uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows: The following transactions were completed during November: a. Materials purchases on account during the month, 74,000. b. Materials requisitioned during the month: 1. Direct materials, 57,000. 2. Indirect materials, 11,000. c. Direct materials returned by factory to storeroom during the month, 1,100. d. Materials returned to vendors during the month prior to payment, 2,500. e. Payments to vendors during the month, 68,500. Required: 1. Prepare general journal entries for each of the transactions. 2. Post the general journal entries to T-accounts. 3. Balance the accounts and report the balances of November 30 for the following: a. Cash b. Materials c. Accounts Payable
