The Chronicle Fabrication Plant had a fire at the beginning of 2019 and most of the records for the year 2018 were lost. Some data for the year 2018 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: Total direct labor costs estimated at the beginning of the year: Total direct labor hours (DLH) estimated at the beginning of the year: Actual manufacturing overhead costs for the year: Actual direct labor costs for the year: Actual direct labor hours (DLH) for the year: $105,840 $186,000 3,600 DLH $99,760 $142,000 2,950 DLH The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary

The Chronicle Fabrication Plant had a fire at the beginning of 2019 and most of the records for the year 2018 were lost. Some data for the year 2018 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: Total direct labor costs estimated at the beginning of the year: Total direct labor hours (DLH) estimated at the beginning of the year: Actual manufacturing overhead costs for the year: Actual direct labor costs for the year: Actual direct labor hours (DLH) for the year: $105,840 $186,000 3,600 DLH $99,760 $142,000 2,950 DLH The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

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On June 30, 2019, a flash flood damaged the warehouse and factory of Padway Corporation, completely destroying the work-in-process inventory. There was no damage to either the raw materials or finished goods inventories. A physical inventory taken after the flood revealed the following valuations: Raw materials $ 62,000 Work in process 0 Finished goods 119,000 The inventory on January 1, 2019, consisted of the following: Raw materials $ 30,000 Work in process 100,000 Finished goods 140,000 $270,000 A review of the books and records disclosed that the gross profit margin historically approximated 25% of sales. The sales for the first six months of 2019 were $340,000. Raw material purchases were $115,000. Direct labor costs for this period were $80,000, and manufacturing overhead was historically applied at 50% of direct labor. Required: Compute the value of the work-in-process inventory lost at June 30, 2019.
Mr. Mazin is a production manager in Al Rawa Manufacturing & Trading LLC. During the month of January 2021, Al Rawa Manufacturing received an order from a customer. The order has been processed and the finished goods are transferred to the stores. During the production, in one process there was a normal loss of 50 units & abnormal loss of 75 units, the total cost incurred in the process was RO 10,000, the normal loss is estimated at RO 80 per unit, abnormal loss value was estimated at RO 3,000. The production manager requested you to estimate the number of input units issued to the process. a. 225 units b. 200 units c. 250 units d. 275 units
The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year, which resulted in the loss of property including the accounting records. Some data for the year were retrieved, and extracts from it are shown below: Total manufacturing overhead costs estimated at the beginning of the year $102,940 Total direct labor costs estimated at the beginning of the year $184,000 Total direct labor hours estimated at the beginning of the year 3,300 direct labor hours Actual manufacturing overhead costs for the year $98,770 Actual direct labor costs for the year $150,000 Actual direct labor hours for the year 2,500 direct labor hours The company's manufacturing overhead allocation is based on direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) Question content area…
Following details have been extracted for the year ended 31st March, 2021 Particulars Rs. Corporate Manager’s salary Rent of Plant Sale of defective Raw Material Hire charges for special equipment Office rent Purchase of raw material Carriage inwards Indirect materials Office expenses Insurance premium for stock of raw material Insurance premium for computer Insurance premium for delivery van Opening stock of raw material Closing stock of raw material Sale of factory scrap Carriage outward Depreciation on delivery van Depreciation on computer Salaries to office staff Salaries to drawing and designing department Opening work in progress Closing work in progress Brand ambassador remuneration Direct wages for skilled labour Direct wages for unskilled labour Cost of catalogue printing Opening stock of finished goods Closing stock of finished goods Repairs to delivery van 11,10,000 1,27,500 8,500 57,000 84,700 4,85,230 24,325 2,35,600 41,000 22,600 12,700 11,500 78,175 76,230…
Comvita management have provided you with the following data for the year ended in 31st December 2018. Amounts in $ Work in Process - Jan 1, 2018 8100 Selling and Administrative Salaries 13800 Insurance on factory and equipment 3600 Work in Process - December 31, 2018 8300 Finished goods inventory, Jan 1, 2018 14000 Indirect material used 4900 Depreciation on factory equipment 2100 Raw material inventory, Jan 1 2018 10100 Property taxes for factory 2400 Finished goods inventory, 31 December 2018 15400 Purchase of raw material 39000 Electricity for factory 6000 Electricity for sales and administrative offices 2500 Other selling and administrative expenses 4000 Indirect labour cost incurred 29000 Depreciation on factory building 3800 Depreciation on cars used by sales personnel 1200 Direct labour cost incurred 79000 Raw material inventory, Dec 31, 2018 11000…
The work in process inventories of Love Manufacturing, Inc. were completely destroyed by fire on June 1, 2021. Amounts for the following accounts have been established.· Accounts payable, Jan. 1, 2021- P117,000· Accounts payable, Jun. 1, 2021- P135,000· Raw materials, Jan. 1, 2021- P15,000 · Raw materials, Jun. 1, 2021- P18,000· Work in process, Jan. 1, 2021- P60,000 · Finished goods, Jan. 1, 2021- P69,000 · Finished goods, Jun. 1, 2021- P87,000 The following additional information was determined: · Payments to suppliers for purchases on account, P60,000. · Freight on purchases, P3,000. · Purchase returns, P7,500. · Direct labor, P48,000. · Production overhead, P18,000. · Sales from January 1 to May 31, P225,000. · Sales returns, P45,000. · Sales discounts, P15,000. · Gross profit rate based on…
Win Company fabricated equipment for its office use in the company’s plant during 2019. The following data were taken from the company’s records of materials and direct labor, respectively: 1. Finished Goods: Materials- P1,000,000; Direct Labor- P1,500,000 2. Office equipment: Materials- P600,000; Direct Labor- P500,000 Factory overhead for the period amounted to P1,200,000. Normal production of the finished goods is 50,000 units. Due to the fabrication of the office equipment, finished goods produced totaled 35,000 units only during 2019. The office equipment is to be charged with the overhead which would have been apportioned to the 15,000 units that were not produced. What is the cost of the equipment after apportionment of factory overhead?
On November 30, 2022, there was a fire in the factory of Able Manufacturing Limited, where you work as the controller. The work in process inventory was completely destroyed, but both the materials and finished goods inventories were undamaged. Able uses normal job-order costing and its fiscal year end is December 31. Selected information for the periods ended October 31, 2022, and November 30, 2022, follows: October 31, 2022 November 30, 2022 Supplies (including both direct and indirect materials) $ 79,250 $ 73,250 Work in process inventory 58,875 ? Finished goods inventory 60,000 63,000 Cost of goods sold (year to date) 576,000 656,000 Accounts payable (relates to materials purchased only) 17,960 53,540 Manufacturing overhead incurred (year to date) 129,500 163,300 Manufacturing overhead applied 128,700 ? Other information for November 2022: Cash payments to…
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 27,500 Direct labor $ 671,800 Depreciation expense—Office equipment 11,800 Income taxes expense 285,700 Depreciation expense—Selling equipment 10,900 Indirect labor 59,300 Depreciation expense—Factory equipment 33,500 Miscellaneous production costs 11,300 Factory supervision 140,300 Office salaries expense 66,000 Factory supplies used 8,300 Raw materials purchases 965,000 Factory utilities 34,000 Rent expense—Office space 28,000 Inventories Rent expense—Selling space 26,400 Raw materials, December 31, 2018 153,900 Rent expense—Factory building 82,600 Raw materials, December 31, 2019 180,000 Maintenance expense—Factory equipment 39,900 Work in process, December 31, 2018 19,300 Sales 4,626,600 Work…
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 34,300 Direct labor $ 673,300 Depreciation expense—Office equipment 11,500 Income taxes expense 270,100 Depreciation expense—Selling equipment 10,300 Indirect labor 58,800 Depreciation expense—Factory equipment 34,800 Miscellaneous production costs 11,200 Factory supervision 109,600 Office salaries expense 61,000 Factory supplies used 8,900 Raw materials purchases 957,000 Factory utilities 36,000 Rent expense—Office space 24,000 Inventories Rent expense—Selling space 27,400 Raw materials, December 31, 2018 152,900 Rent expense—Factory building 82,600 Raw materials, December 31, 2019 182,000 Maintenance expense—Factory equipment 36,600 Work in process, December 31, 2018 19,400 Sales 4,525,600 Work…
During the month of March 2019, Lagmay incurred the following manufacturing costs: Direct Materials - P60, Direct Labor - P80,000, and Factory Overhead - P40,000. The Cost of Goods Manufactured was P190,000 and ending Work in Process Inventory was P30,000. How much is the beginning Work in Process Inventory?
1. Cabundoc Manufacturing provides the following information for 2020. The ending work in process is? Ending Work in process = Opening raw materials inventory 70000 Closing raw materials inventory 60000 Opening work in process inventory 150000 Raw materials available for use 410000 Direct labor cost 300000 Factory overhead 337500 Cost of goods manufactured 836000 2. The following information was reported by AS Company for the month of September, 2019. Assuming that mark-up is 100% on the cost price, and the total operating expenses is 256000, the net income before tax is? Net income before tax = September 1 September 30 Direct materials 80000 100000 Work in process finished goods 50000 70000 Finished goods 120000 140000 Direct labor cost 240000 Factory overhead 216000 Cost of goods sold 766000 3. The total work in process is 330000. The beginning work in process is 30000…