What is the adjusted balance of work in process inventory after disposing the under- or over-applied overhead?
Q: Fill in the blank. ______ method is a costing method which includes beginning work-in-process…
A: There are various methods for valuation of inventory in cost accounting. Mainly, inventory is found…
Q: Which of the following is correct with respect to closing out underapplied manufacturing overhead to…
A: Overapplied manufacturing overhead occurs when applied overhead exceeds actual overhead. The entry…
Q: the cost of all direct materials issued to production is debited to work in process inventory
A: Work in progress means where the raw material has enter in to phase of production but still finished…
Q: Help 2
A: The amount by which the overhead incurred during the period exceeds the overhead applied to jobs…
Q: Which account is not used in JIT costing? a. Finished Goods Inventory b. Raw and In-Process…
A: The JIT is a management strategy that minimizes the inventory and increases efficiency. JIT is to…
Q: Explain the treatment of over and under absorption of overheads in cost accounts?
A: Overheads: These are defined as the expenses incurred in relation to an ongoing business. These are…
Q: What is the TOTAL cost assigned to the ending work in process inventory?
A: Process costing: process costing is a costing method used by companies that produce homogeneous…
Q: Distinguish between (a) factory overhead and (b) selling and administrative overhead.
A: Factory overhead:
Q: If Manufacturing Overhead has a debit balance at the end of the period, then a. overhead has been…
A:
Q: How is predetermined overhead rate established? How is it used to apply overhead?
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Q: adjustment of underapplied manufacturing overhead cost
A: Underapplied manufacturing overhead cost are disposed by increasing cost of goods sold. This will…
Q: The total cost of direct material, direct labor, and manufacturing overhead transferred from…
A: Inventory- The things that a business keeps on hand in order to make money are referred to as…
Q: In what way does the accounting treatment of direct materials and direct labor costs differ from…
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: In what way does the accounting treatment of factory overhead differ from that of direct materials…
A: Factory overheads include all indirect costs incurred during the manufacturing process to maintain…
Q: What is the adjusted balance of cost of goods sold after disposing the under-or-overapplied…
A: The balance of the manufacturing overhead control account is credit which means it is overapplied.
Q: What are the differences between Underapplied Factory Overhead and Overapplied Factory Overhead?
A: Overhead: Overhead cost means expenses referred to indirect cost. The overhead cost like rent,…
Q: Required: Assuming no adjustments were made for any under- or overapplied overheads, prepare the…
A:
Q: What adjustment is made for underapplied overhead on the schedule of CoGS? What adjustment is made…
A: Underapplied overhead is added to cost of goods sold thus increases the total cost of goods sold.
Q: What is the adjusted balance of finished goods inventory after disposing the under-or over-applied…
A: Cost of goods sold: Cost of goods sold means cost of producing the goods which are being sold by…
Q: What is the cost assigned to the October 31 work in process inventory?
A: Equivalent units of products concept came in to existence when some units are not fully completed at…
Q: Which of the following is correct with respect to closing out underapplied marufacturing overhead to…
A: A predetermined overhead rate is calculated by dividing the estimated overhead by the estimated…
Q: Please explain:: What is the purpose of an overhead rate What are the steps to apply the overhead…
A: Requirement 1: The overhead rate is used to allocate the indirect cost to the direct costs being…
Q: How is the predetermined overhead allocation rate used to allocate overhead?
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
Q: How much fixed overhead cost is included in ending finished goods inventory under absorption…
A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…
Q: direct labor costs are debited to work in process inventory true false
A: The direct labor cost is the part of manufacturing cost that would be part of inventory or WIP…
Q: Under FIFO method, what was the actual units of the Work in Process beginning inventory?
A: Normal wastage or material loss is the loss that is unavoidable due to the fundamental character of…
Q: What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What…
A: Overhead cost: The costs other than the direct costs such as insurance, interest, repairs, taxes…
Q: why is adjustment necessary for under and over absorption of overheads in the absorption costing…
A: Here discuss about the details of adjustment which are needed for the over and under absorption of…
Q: "Vhat is the adjusted balance of work in process inventory after disposing the under- er…
A: Applied overhead : applied Overhead is a cost assigned to production using the estimated overhead…
Q: In what way does the accounting treatment of factory overhead differ from that of direct materials…
A: Factory overhead is defined as cost incurred during the process of manufacturing but not including…
Q: Which of the following statements regarding work in process is not correct? a. Work in process is…
A: There are three types of inventory in a manufacturing firm; 1) Raw material inventory, 2) Work in…
Q: Which of the following statements is false? Multiple Choice Work in process inventory is included in…
A: Work in Process inventory is included in the balance sheet and it includes all the costs incurred to…
Q: What does it mean that manufacturing overhead is applied to inventory?
A: Manufacturing overhead is defined as all the indirect costs which are incurred during the process of…
Q: Determine the amount of underapplied or overapplied manufacturing overhead for the period.
A: We can get to understand underapplied or overapplied manufacturing overhead by assuming some…
Q: Describe how the over or under application of overhead should be corrected in the accounting…
A: Over application of overhead: A corporation is said to have overapplied overhead when the actual…
Q: total cost of the ending work in process inventory
A:
Q: Which method of determining operating income is used internally for decision making and considers…
A: There are mainly two costing methods adopted by the management to determine the operating income,…
Q: Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare…
A: When the overheads are underapplied, it means that COGS is understand hence we need to adjust by…
Q: True or False. Over/under applied overhead must be closed and allocated to Cost of Goods Sold,…
A: Overheads are a part of the cost incurred during the manufacturing process, which are estimated in…
Q: Explain the journal entry for the allocation of overhead. What accounts are affected? Are they…
A: Overheads are indirect costs incurred during production of a unit or providing services. These costs…
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- Phillips Products, Inc. had a remaining credit balance of $10,000 in its under- and overapplied factory overhead account at year-end. It also had year-end balances in the following accounts: Required: Prepare the closing entry for the $10,000 of overapplied overhead, assuming that the balance is not considered to be material. Prepare the closing entry for the $10,000 of overapplied overhead, assuming that the balance is considered to be material.Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following: Determine the prorated amount of the overapplied factory overhead that is chargeable to each of the accounts. Prepare the journal entry to close the credit balance in Under-and Overapplied Factory Overhead.Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
- Housley Paints Co. had a remaining debit balance of $25,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following: Determine the prorated amount of the underapplied factory overhead that is chargeable to each of the accounts. Prepare the journal entry to close the debit balance in Under-and Overapplied Factory Overhead.Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending work in process inventory was 90% of the beginning work in process inventory. Factory overhead was 50% of the direct labor cost. No indirect materials were used during the period. Other information pertaining to OReillys inventories and production for July is as follows: Required: 1. Prepare a statement of cost of goods manufactured for the month of July. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information. Start by using cost of goods sold to solve for the cost of goods manufactured.) 2. Prepare a schedule to compute the prime cost incurred during July. 3. Prepare a schedule to compute the conversion cost charged to Work in Process during July.
- 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.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.)Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
- During March, the following costs were charged to the manufacturing department: $14886 for materials; $14,656 for labor; and $13,820 for manufacturing overhead. The records show that 30,680 units were completed and transferred, while 2,400 remained in ending inventory. There were 33,080 equivalent units of material and 31,640 of conversion costs. Using the weighted-average method, what is the cost of inventory transferred and the balance in work in process inventory?During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.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?