Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 16, Problem 9DQ
(a)
(1)
To determine
Predetermined
To state: the meaning of over applied factory overhead.
(b)
To determine
To explain: if factory overhead is underapplied or overapplied if factory overhead has debit balance.
(c)
To determine
To state: the reporting of credit balance of factory overhead in interim
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explain why the factory overhead balance must be disposed of at year end?
Chapter 16 Solutions
Financial & Managerial Accounting
Ch. 16 - Prob. 1DQCh. 16 - What kind of firm would use a job order cost...Ch. 16 - Which account is used in the job order cost system...Ch. 16 - Prob. 4DQCh. 16 - What is a job cost sheet?Ch. 16 - Prob. 6DQCh. 16 - Discuss how the predetermined factory overhead...Ch. 16 - A. How is a predetermined factory overhead rate...Ch. 16 - Prob. 9DQCh. 16 - Describe how a job order cost .system can be used...
Ch. 16 - Issuance of materials On May 7, Bergan Company...Ch. 16 - Direct labor costs During May, Herman Company...Ch. 16 - Factory overhead costs During May, Bergan Company...Ch. 16 - Applying factory overhead Bergan Company estimates...Ch. 16 - Job costs At the end of May, Bergan Company had...Ch. 16 - Cost of goods sold Pine Creek Company completed...Ch. 16 - Transactions in a job order cost system Five...Ch. 16 - Cost flow relationships The following information...Ch. 16 - Cost of materials issuances under the FIFO method...Ch. 16 - Entry for issuing materials Materials issued for...Ch. 16 - Entries for materials GenX Furnishings Company...Ch. 16 - Entry for factory labor costs A summary of the...Ch. 16 - Entry for factory labor costs The weekly time...Ch. 16 - Entries for direct labor and factory overhead...Ch. 16 - Factory overhead rates, entries, and account...Ch. 16 - Predetermined factory overhead rate Spring Street...Ch. 16 - Predetermined factory overhead rate Poehling...Ch. 16 - Entry for jobs completed; cost of unfinished jobs...Ch. 16 - Entries for factory costs and jobs completed Old...Ch. 16 - Financial statements of a manufacturing firm The...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Entries for costs in a job order cost system...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job order cost sheet Remnant Carpet Company sells...Ch. 16 - Analyzing manufacturing cost accounts Fire Rock...Ch. 16 - Flow of costs and income statement Ginocera Inc....Ch. 16 - Entries for costs in a job order cost system Royal...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job order cost sheet Stretch and Trim Carpet...Ch. 16 - Analyzing manufacturing cost accounts Clapton...Ch. 16 - Prob. 16.5BPRCh. 16 - Prob. 16.1TIFCh. 16 - Team Activity As an assistant cost accountant for...Ch. 16 - Carol Creedence, the plant manager of the...
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Similar questions
If the factory overhead control account has a credit balance of 2,000 at the end of the first month of the fiscal year, has the overhead been under- or overapplied for the month? What are some probable causes for the credit balance?
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At the end of the fiscal year, there s a relatively minor balance in the factory overhead account. What procedure can be used for disposing of the balance in the account
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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.
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Nathan Industries had a remaining debit balance of $20,000 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 $20,000 of underapplied overhead, assuming that the balance is not considered to be material.
Prepare the closing entry for the $20,000 of underapplied overhead, assuming that the balance is considered to be material.
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The adjustment for factory overhead applied to work in process at the end of the accounting period includes a debit to the factory overhead account.
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MountaIn Peaks applies overhead on the basis of machine hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over- or under applied, and by what amount? D. What is the journal entry to dispose of the over- or under applied overhead?
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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.
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JOURNAL ENTRIES FOR FACTORY OVERHEAD Huang Company manufactures toys. It keeps a factory overhead account where actual factory overhead costs are recorded as a debit, and factory overhead applied is recorded as a credit. At the end of the month, under- or overapplied factory overhead is calculated and transferred to the cost of goods sold account. For the month of January, Huang had the following overhead transactions. Make appropriate general journal entries to record factory overhead and factory overhead applied, and to close the under- or overapplied factory overhead to the cost of goods sold account. Jan.1 Paid rent, 1,000. 10 Paid electricity bill, 250. 15 Paid repair expense, 1,500. 21 Vacation pay for machine operator, 500 (Wages Payable). 31 Depreciation expense for the month, 450. 31 Factory overhead applied was 3,500.
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Mountain Tops applies overhead on the basis of direct labor hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over applied or under applied, and by what amount? D. What is the journal entry to dispose of the over applied or under applied overhead?
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Monterrey Products Co. uses the process cost system. A record of the factory operations for the month of October follows: Required: Prepare a cost of production summary, assuming that the production losses are considered to be normal.
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A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Using the information provided. A. What is the balance in work in process? B. What Is the balance in the finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?
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Bangor Products Co. obtained the following information from its records for April: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for April: a. The gross profit or loss for each job completed and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)
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