Concept explainers
Using Excel to calculate a predetermined
Download an Excel template for this problem online in MyAccountingLab or athttp://www.pearsonhighered.com/Horngren.
Cedar River Trikes manufactures three-wheeled bikes for adults The company allocates
Raw Materials Inventory | $ 25,000 |
Work-in-Process Inventory | 18,000 |
Finished Goods Inventory | 43,000 |
During June 2018, Cedar River actually used 1,100 machine hours.
Requirements
- Compute the predetermined overhead allocation rate for fiscal year 2018. Use the blue shaded areas for inputs.
- Use Excel to journalize the transactions in the general journal. The account titles are available when you click the down-arrow. Use the Increase Indent button on the Home tab to indent items.
- Enter the beginning balances for the inventories. Assume the rest of the accounts do not have beginning balances. Post the transactions to T-accounts. The balances in the T-accounts are automatically updated.
- Adjust the manufacturing overhead.
- Prepare the
journal entry . - Post to T-accounts.
- List the ending balances for Raw Materials Inventory, Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.
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Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)
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