Answer-Prepare for January 2023: -Direct materials purchases budget-Direct labor costs budget-Factory overhead budget F. Direct labor requirements:Batting helmet:Molding Department......Assembly Department...Football helmet:Molding Department.....Assembly Department..G. Estimated factory overhead costs for January:Indirect factory wages...Depreciation of plant and equipment..Power and light...........Insurance and property tax..H. Estimated operating expenses for January:Sales salaries expense.........Advertising expense......Office salaries expense...Depreciation expense-office equipment.......Telephone expense-selling.........Telephone expense-administrative.....Travel expense-selling........Office supplies expense...Miscellaneous administrative expense.............I. Estimated other income and expense for January:Interest revenue..Interest expense..J. Estimated Tax rate.......********..20 hour at $13 per hour.60 hour at $14 per hour.60 hour at $13 per hour1.90 hours at $15 per hour$110,00020,00020,0006,000$200,00090,00036,0006,0001,8001,00015,0002,0001,300$2,0004,00021% The Budget director of Sunhelmet Corp., with your assistance, has gathered the followingdata for use in developing the budgeted income statement for January 2023:A. Estimated sales for January:Batting helmet.........Football helmet...B. Estimated inventories (beginning) at January 1:Direct materials:Plastic..........400 lbs.Foam lining...... 500 lbs.Finished products:5,000 units at $60 per unit4,000 units at $160 per unitBatting helmet.... 600 units at $30 per unitFootball helmet... 350 units at $90 per unitC. Desired inventories (ending) at January 31:Direct materials:Plastic............. 500 lbs.Foam lining......... 550 lbs.D. Direct materials used in production:In manufacture of batting helmet:Plastic..........Foam lining...In manufacture of football helmet:Plastic..........Foam lining...Finished products:Batting helmet......Football helmet............430 units at $30 per unit..300 units at $90 per unit********. 1.20 lbs. per unit of product.50 lbs. per unit of product3.50lbs. per unit of product1.50lbs. per unit of productE. Anticipated cost of purchases and beginning and ending inventory of directmaterials:Plastic...Foam lining..$8.10 per lb.$5.60 per lb.

The Budget director of Sunhelmet Corp., with your assistance, has gathered the following data for use in developing the budgeted income statement for January 2023: A. Estimated sales for January: Batting helmet...... Football helmet... B. Estimated inventories (beginning) at January 1: Direct materials: Plastic............. 400 lbs. Foam lining...... 500 lbs. Finished products: Batting helmet.... 600 units at $30 per unit Football helmet... 350 units at $90 per unit 5,000 units at $60 per unit 4,000 units at $160 per unit C. Desired inventories (ending) at January 31: Direct materials: Plastic................ 500 lbs. Foam lining......... 550 lbs. D. Direct materials used in production: In manufacture of batting helmet: Plastic......... Foam lining.. ****** In manufacture of football helmet: Plastic..... Foam lining.. Finished products: Batting helmet........ ..430 units at $30 per unit Football helmet...........300 units at $90 per unit 1.20 lbs. per unit of product .50 lbs. per unit of product *********** 3.50lbs. per unit of product 1.50lbs. per unit of product E. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic...... Foam lining.... $8.10 per lb. $5.60 per lb.

The Budget director of Sunhelmet Corp., with your assistance, has gathered the following data for use in developing the budgeted income statement for January 2023: A. Estimated sales for January: Batting helmet...... Football helmet... B. Estimated inventories (beginning) at January 1: Direct materials: Plastic............. 400 lbs. Foam lining...... 500 lbs. Finished products: Batting helmet.... 600 units at $30 per unit Football helmet... 350 units at $90 per unit 5,000 units at $60 per unit 4,000 units at $160 per unit C. Desired inventories (ending) at January 31: Direct materials: Plastic................ 500 lbs. Foam lining......... 550 lbs. D. Direct materials used in production: In manufacture of batting helmet: Plastic......... Foam lining.. In manufacture of football helmet: Plastic..... Foam lining.. Finished products: Batting helmet........ ..430 units at $30 per unit Football helmet...........300 units at $90 per unit 1.20 lbs. per unit of product .50 lbs. per unit of product ***** 3.50lbs. per unit of product 1.50lbs. per unit of product E. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic...... Foam lining.... $8.10 per lb. $5.60 per lb.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...

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T-Account Analysis of Cost Flows Selected T-accounts of Moore Company are given below for the just completed year: Required: 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (1) above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $8,000 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?
d) What is the balance in the Cost of Goods Sold account after the adjustment? e) Compute Exclusive Souvenirs’ gross profit earned on the jobs, after adjusting for the manufacturing overhead variance. f) Determine the balance in the Work in Process Inventory account on June 30
1. How much overhead would have been charged to the company’s Work-in-Process account during the year? 2. Comment on the appropriateness of the company’s cost drivers (i.e., the use of machine hours in Machining and direct-labor cost in Assembly).
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $252,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $265,000 and 22,200 hours, respectively. Required: 1. Compute over- or underapplied overhead. 2a. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?
Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $252,000 and direct labor hours to be 20,000. Actual overhead and actual direct labor hours for the year were $265,000 and 22,200 hours, respectively. 1. Compute over- or underapplied overhead. 2a. Which accounts will be affected by the over- or underapplied manufacturing overhead? 2b. Will the accounts be increased or decreased to adjust for the over- or underapplied manufacturing overhead?
Direct materials used during the month? Work in process inventory, 08/31/x2? Finished goods inventory, 08/31/x2? Cost of goods placed in process during the period? Prime cost during the period?
Selected T-accounts of Moore Company are given below for the just completed year Required: 1. What was the cost of raw materials used in production during the year? 2. How much of the materials in (1) above consisted of indirect materials? 3. How much of the factory labor cost for the year consisted of indirect labor? 4. What was the cost of goods manufactured for the year? 5. What was the unadjusted cost of goods sold for the year? Do not include any underapplied or overapplied overhead in your answer. 6. If overhead is applied to production on the basis of direct labor cost, what predetermined overhead rate was in effect during the year? 7. Was manufacturing overhead underapplied or overapplied? By how much? 8. Compute the ending balance in Work in Process. Assume that this balance consists entirely of goods started during the year. If $11,250 of this balance is direct labor cost, how much of it is direct materials cost? Applied overhead cost?
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
1. Prepare journal entries dated June 30 to record: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor usage, (e) indirect labor usage, (f) other overhead costs, (g) overhead applied, and (h) payment of total wages costs.
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Hankook Company employ new employee and are assigned to make Statement of Cost of Manufactured, Statement of Cost of Goods Sold, and Income Statement. The results attached on picture below Questions : a. Identify the factory overhead item and the total in USD b. Identify the period cost and the total in USD c. If there is something wrong with the income statement above, correct the income statement above so all the item cost is where it should be.
Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $19,881 Direct labor 26,367 Factory overhead 30,358 Work in process inventory, March 1 16,084 Work in process inventory, March 31 19,103 Finished goods inventory, March 1 24,137 Finished goods inventory, March 31 24,143 a. Determine the cost of goods manufactured. ????? b. Determine the cost of goods sold. ????