Use the following selected information for Jim Beam Company For the year ended 31st December 2020 $1,000 Direct Materials Used (applied to production) $23,000 $132,000 $25,000 $5,500 $10,000 $15,000 $9,000 $17,000 $57,000 Ending Work in Process Managing Director salary Direct Labor Incurred in period Rent – factory Beginning Work in Process Shop cleaner salary Rent – shop Rent – head office Factory Manager salary The total of Factory Overheads for the period is: Select one: O a. $97,000 O b. $62,500 O c. $24,000 O d. $79,500

Use the following selected information for Jim Beam Company For the year ended 31st December 2020 $1,000 Direct Materials Used (applied to production) $23,000 $132,000 $25,000 $5,500 $10,000 $15,000 $9,000 $17,000 $57,000 Ending Work in Process Managing Director salary Direct Labor Incurred in period Rent – factory Beginning Work in Process Shop cleaner salary Rent – shop Rent – head office Factory Manager salary The total of Factory Overheads for the period is: Select one: O a. $97,000 O b. $62,500 O c. $24,000 O d. $79,500

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
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Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.