Record the application of manufacturing overhead to production. 1
Q: Which document is used by cost accounting to allocate direct labor charges to work-in-process?
A:
Q: Conversion cost consist of A) direct materials and direct labour B) direct labour and manufacturing…
A: There are two types of costs - 1. Prime Cost 2. Conversion Cost This costs are required to prepare…
Q: Choose the option that has the most accurate list of elements of a manufacturing cost. Direct…
A: The manufacturing costs include all the direct and indirect cost related to the production process.…
Q: A report that lists the types and amounts of costs incurred in manufacturing is a:
A: A report that lists the types and amounts of cost incurred in manufacturing is a: Schedule of cost…
Q: T, F. Prime cost consists of Direct Materials and Factory Overhead.
A: Prime cost is a combination of direct attributes i.e primarily incurred for the product.
Q: Which of these are factory overhead
A: Factory overhead includes: Rent cost on factory equipment Factory utilities…
Q: Distinguish between (a) factory overhead and (b) selling and administrative overhead.
A: Factory overhead:
Q: Define manufacturing overhead costs?
A: Step 1: Overheads are the costs that are incurred to run a business. Some of the overheads are rent,…
Q: a. How is a predetermined factory overhead rate calculated?b. Name three common bases used in…
A: a.
Q: 1. Indirect labor and indirect materials are classified as O manufacturing overhead and product…
A: Indirect Material: Material which don't become integral part of Product produced is known as…
Q: In a process costing system, manufacturing overhead applied is usually recorded as a debit to: 7. A.…
A: Finished goods comprises of the units completed and sold and the opening and closing inventories.…
Q: amount of overheads allocated to product Apex
A: Estimated annual overhead cost for set up (A) RO 440,000 Number of set ups (B) 4,000 Overhead…
Q: Manufacturing overhead is
A: Predetermined overhead application rate is - (Estimated overhead costs)/(Total Direct labours) Note…
Q: Using Traditional Method of costing using direct labor hours as basis of applying overhead, what is…
A: Using traditional method of costing, cost of product = Prime cost + overhead cost allocated on the…
Q: What is Journal entry actual manufacturing overhead costs and applied manufacturing overhead costs.…
A: Actual manufacturing overhead costs: Actual expense incurred includes salaries payable, supplies,…
Q: e activity-based factory overhead per unit f
A: Under activity-based costing technique costs are assigned to each product based on cost drivers…
Q: Define manufacturing overhead costs with an example?
A: All manufacturing costs that are related to the production cost, but that is not directly related…
Q: Calculate the total absorbtion rate used to apportion manufacturing overhead by?
A: The absorption rate is assigned according to the various allocation grounds. Hours of direct work…
Q: Overheads applied are calculated by:
A: Applied overheads are an indirect cost that is directly related to the manufacturing of products but…
Q: Manufacturing overhead includes: all direct material, direct labor and administrative costs. all…
A: Manufacturing overhead also known as factory overhead which is consists all indirect cost incurred…
Q: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
A: In order to know the total manufacturing overhead cost assigned to Y, we need to first calculate the…
Q: Define the term manufacturing overheads.
A: Manufacturing overhead is all indirect costs incurred during the production process. This overhead…
Q: Define direct materials, direct labor and manufacturing overhead.
A: Cost accounting: It is the method of accounting in which the cost of the product or the service is…
Q: and factory overhead. Make the following calculations: a. Equivalent units for direct materials b.…
A:
Q: Explain how overhead is assigned to production when a predetermined overhead rate is used?
A: Overhead is kind of cost or expenditure which is not directly related to manufacturing but somehow…
Q: In a process cost system, machinery depreciation expense incurred is debited to a. manufacturing…
A: Process costing is a part of cost analysis which is used by organizations that have more than 1…
Q: Preparing a summary journal entry to record allocation of manufacturing overhead
A: Preparation of a summary journal entry to record allocation of manufacturing overhead. We have,The…
Q: Journal entry actual manufacturing overhead costs and applied manufacturing overhead costs
A: Manufacturing overheads are the indirect costs incurred in the manufacturing of products. It…
Q: Compute the Manufacturing Overhead Applied to Jobs;
A: Overhead cost allocation: It is the process of allocating the estimated overhead of a company to its…
Q: Prepare the journal entry to record the overhead cost applied to production.
A: Journal entry: It is prepared to record the financial and non financial transaction of the business…
Q: Describe the types of manufacturing overhead.
A: Manufacturing Expenses or Overhead are the indirect type of costs that a business incurs for a…
Q: Should design of cost be calculated in factory overhead costs incurred? Explain why
A: The answer for the question on cost design is discussed hereunder : Design of Cost aims at reducing…
Q: what are the three major components of product costs: direct materials, direct labor, and…
A: The costs of producing a product are referred to as product costs. Direct material, direct labour,…
Q: Assign indirect labor cost is recorded with a Select one: Oa. debit to Labor Cost. O b. debit to…
A: Indirect labour cost is the expense of work that isn't straightforwardly identified with the…
Q: What it means when manufacturing overhead has a debit or credit balance?
A: Manufacturing overheads refer to a cost associated with the production of goods but can't be…
Q: How to compute manufacturing overhead?
A: In order to manufacture the product, various indirect expenses are incurred such as indirect…
Q: manufacturing overhead for
A: Predetermined rate of manufacturing overhead = Budgeted manufacturing overhead/Budgeted direct labor…
Q: The process of assigning overhead costs to the jobs that are worked on is commonly called:
A: In costing we have various terms those are enumerated as below: Overhead cost allocation Overhead…
Q: During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to…
A: Cost accounting is one of the useful branch of accounting that is being used for the purpose of…
Q: Indirect material used in production is classified as __________. administration…
A: 1. Indirect Material - Indirect Material is the part of production overhead. They are not directly…
Q: In a process costing system, manufacturing overhead applied is usually recorded as a debit to______?
A: Process costing system is a system of costing which shows the cost incurred in each process with…
Q: Explain an example of manufacturing overhead.
A: Manufacturing overhead costs: “The costs, which do not relate directly with the manufacturing of…
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- Channel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.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?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?
- The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?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.
- Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the Work-in-Process account for the month of June. During the month of June, direct labor totaled 30,000 and 24,000 of overhead was applied to production. Finished Goods was debited 100,000 during June. Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of 3,400. What was the amount of direct materials charged to Job number 83? a. 3,400 b. 4,250 c. 8,350 d. 7,580Terrills 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 PayableLeen Production Co. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of May: a. Compute the total production cost of each job. b. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. c. Compute the selling price per unit for each job, assuming a mark-on percentage of 40%. d. Prepare the journal entries to record the sale of Job 1065.
- Entries for costs in a job order cost system Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: A. Materials purchased on account, 770,000. B. Materials requisitioned, 680,000, of which 75,800 was for general factory use. C. Factory labor used, 756,000, of which 182,000 was indirect. D. Other costs incurred on account for factory overhead, 245,000; selling expenses, 171,500; and administrative expenses, 110,600. E. Prepaid expenses expired for factory overhead were 24,500; for selling expenses, 28,420; and for administrative expenses, 16,660. F. Depreciation of factory equipment was 49,500; of office equipment, 61,800; and of office building, 14,900. G. Factory overhead costs applied to jobs, 568,500. H. Jobs completed, 1,500,000. I. Cost of goods sold, 1,375,000. Instruction Journalize the entries to record the summarized operations.Nutt Products manufactures screws and bolts made to customer specifications. During August, Nutt incurred the following manufacturing costs: direct materials, 28,019.00; direct labor, 15,276.75; and applied factory overhead, 9,854.50. The following data pertain to these costs: The overhead application rates are 4 per direct labor hour for Dept. 1 and 175% of direct labor cost for Dept. 2. Nutt had no beginning work in process for August. Job 8958, which cost 14,190.18 to manufacture, was completed in July and was sold on account in August for 19,000. The job cost sheet for this job is shown on page 103. Of the jobs begun in August, Job 8961 was completed and sold on account for 24,000, Jobs 8962 and 8964 were completed but not sold, and Job 8963 was still in process. As cost accountant for this company, you have been asked to prepare job cost sheets for each of the four jobs started in August. Review the printed worksheet called JOB that follows these requirements.Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)