Homework Help is Here – Start Your Trial Now!
Business
Accounting
Use the information below to answer the following two questions: Ginseng Inc. uses a normal cost system to account for jobs it produces and closes out any over- or under-applied manufacturing overhead directly to Cost of Goods Sold at the end of each quarter. Beginning balances from the Balance Sheet on January 1 are shown in the table below. The table uses the following abbreviations: RM = Raw Materials Inventory A/P = Accounts Payable R/E = Retained Earnings WIP = Work in Process Inventory FG = Finished Goods Inventory Beg = Beginning Balance End = Ending Balance MOH = Manufacturing Overhead PP&E = Property, Plant & Equipment A summary of transactions completed in the quarter are shown below in $1,000's: Raw materials purchased on account b. Raw materials used in production (75% were direct; the remainder indirect) a. 22 24 100 Salaries & wages paid in cash (70% direct; 20% indirect; 10% selling & admin) d. Depreciation on PP&E (90% manufacturing; the remainder selling & admin) e. Factory utility expenses paid on account f. Advertising expenses paid in cash g. Manufacturing overhead applied to production c. $ 50 60 34 18 S 105 204 h. Cost of goods manufactured i. Cash sales to customers j. Cost of goods sold (unadjusted) 375 180 k. Underapplied or overapplied overhead closed entirely to Cost of Goods Sold ? To answer the following two questions, enter the numbers relevant for each calculation into the table below using positive numbers to designate increases to an account balance and negative numbers to designate decreases. Cash RM WIP FG МОН PP&E A/P R/E Beg $39 $89 $14 $19 $0 $120 $28 $253 a. b. с. d. e. f. g. h. i. j. k. End

Use the information below to answer the following two questions: Ginseng Inc. uses a normal cost system to account for jobs it produces and closes out any over- or under-applied manufacturing overhead directly to Cost of Goods Sold at the end of each quarter. Beginning balances from the Balance Sheet on January 1 are shown in the table below. The table uses the following abbreviations: RM = Raw Materials Inventory A/P = Accounts Payable R/E = Retained Earnings WIP = Work in Process Inventory FG = Finished Goods Inventory Beg = Beginning Balance End = Ending Balance MOH = Manufacturing Overhead PP&E = Property, Plant & Equipment A summary of transactions completed in the quarter are shown below in $1,000's: Raw materials purchased on account b. Raw materials used in production (75% were direct; the remainder indirect) a. 22 24 100 Salaries & wages paid in cash (70% direct; 20% indirect; 10% selling & admin) d. Depreciation on PP&E (90% manufacturing; the remainder selling & admin) e. Factory utility expenses paid on account f. Advertising expenses paid in cash g. Manufacturing overhead applied to production c. $ 50 60 34 18 S 105 204 h. Cost of goods manufactured i. Cash sales to customers j. Cost of goods sold (unadjusted) 375 180 k. Underapplied or overapplied overhead closed entirely to Cost of Goods Sold ? To answer the following two questions, enter the numbers relevant for each calculation into the table below using positive numbers to designate increases to an account balance and negative numbers to designate decreases. Cash RM WIP FG МОН PP&E A/P R/E Beg $39 $89 $14 $19 $0 $120 $28 $253 a. b. с. d. e. f. g. h. i. j. k. End

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...
See similar textbooks
icon
Related questions
Question
Use the information below to answer the following two questions: Ginseng Inc. uses a normal cost system to account for jobs it produces and closes out any over- or under-applied manufacturing overhead directly to Cost of Goods Sold at the end of each quarter. Beginning balances from the Balance Sheet on January 1 are shown in the table below. The table uses the following abbreviations: RM = Raw Materials Inventory A/P = Accounts Payable R/E = Retained Earnings WIP = Work in Process Inventory FG = Finished Goods Inventory Beg = Beginning Balance End = Ending Balance MOH = Manufacturing Overhead PP&E = Property, Plant & Equipment A summary of transactions completed in the quarter are shown below in $1,000's: Raw materials purchased on account b. Raw materials used in production (75% were direct; the remainder indirect) a. 22 24 100 Salaries & wages paid in cash (70% direct; 20% indirect; 10% selling & admin) d. Depreciation on PP&E (90% manufacturing; the remainder selling & admin) e. Factory utility expenses paid on account f. Advertising expenses paid in cash g. Manufacturing overhead applied to production c. $ 50 60 34 18 S 105 204 h. Cost of goods manufactured i. Cash sales to customers j. Cost of goods sold (unadjusted) 375 180 k. Underapplied or overapplied overhead closed entirely to Cost of Goods Sold ? To answer the following two questions, enter the numbers relevant for each calculation into the table below using positive numbers to designate increases to an account balance and negative numbers to designate decreases. Cash RM WIP FG МОН PP&E A/P R/E Beg $39 $89 $14 $19 $0 $120 $28 $253 a. b. с. d. e. f. g. h. i. j. k. End
Transcribed Image Text:Use the information below to answer the following two questions: Ginseng Inc. uses a normal cost system to account for jobs it produces and closes out any over- or under-applied manufacturing overhead directly to Cost of Goods Sold at the end of each quarter. Beginning balances from the Balance Sheet on January 1 are shown in the table below. The table uses the following abbreviations: RM = Raw Materials Inventory A/P = Accounts Payable R/E = Retained Earnings WIP = Work in Process Inventory FG = Finished Goods Inventory Beg = Beginning Balance End = Ending Balance MOH = Manufacturing Overhead PP&E = Property, Plant & Equipment A summary of transactions completed in the quarter are shown below in $1,000's: Raw materials purchased on account b. Raw materials used in production (75% were direct; the remainder indirect) a. 22 24 100 Salaries & wages paid in cash (70% direct; 20% indirect; 10% selling & admin) d. Depreciation on PP&E (90% manufacturing; the remainder selling & admin) e. Factory utility expenses paid on account f. Advertising expenses paid in cash g. Manufacturing overhead applied to production c. $ 50 60 34 18 S 105 204 h. Cost of goods manufactured i. Cash sales to customers j. Cost of goods sold (unadjusted) 375 180 k. Underapplied or overapplied overhead closed entirely to Cost of Goods Sold ? To answer the following two questions, enter the numbers relevant for each calculation into the table below using positive numbers to designate increases to an account balance and negative numbers to designate decreases. Cash RM WIP FG МОН PP&E A/P R/E Beg $39 $89 $14 $19 $0 $120 $28 $253 a. b. с. d. e. f. g. h. i. j. k. End
Expert Solution
Step 1

Calculation of manufacturing overhead 

Salaries & wages (70% x 50) 35
Depreciation on PP&E (90% x 60) 54
Factory utility expenses  34
Actual manufacturing overhead  123
Less: Manufacturing overhead applied 105
Under applied overhead 18
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SEE MORE TEXTBOOKS