Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 19, Problem S19.2SE
Accounting for materials
Back Country manufactures backpacks. Its plant records include the following materials-related data:
Learning Objective 2
Raw Materials Inventory, beginning balance | $ 38,000 |
Purchases of canvas, on account | 72,000 |
Purchases of sewing machine lubricating oil, on account | 1,200 |
Materials requisitions: | |
Canvas | 59,000 |
Sewing machine lubricating oil | 450 |
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E3-25A Analyze manufacturing overhead (Learning Objectives 3 & 5)
Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to
allocate overhead to individual jobs based on the machine hours required. At the begin-
ning of the year, the company expected to incur the following:
Manufacturing overhead costs
Direct labor cost
Machine hours
$ 630,000
$1,650,000
90,000
********e**
At the end of the year, the company had actually incurred the following:
Direct labor cost
Depreciation on manufacturing plant and equipment
Property taxes on plant
Sales salaries ...
$1,230,000
$ 480,000
$ 19,500
$ 26,500
Delivery drivers' wages
Plant janitors' wages
17,000
%24
8,500
Machine hours
56,500 hours
Requirements
1. Compute Smith's predetermined manufacturing overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year? Is manufacturing
overhead underallocated or overallocated at the end…
INSTRUCTION: Write your answers and solutions in a piece of paper. Submit your answers in Google Classroom viaattachments.LONG PROBLEMConsider the following data of the month for Abdul Production Company: Raw Materials, Beg. P 10,000 Finished Goods, Beg. P 20,000 Work-in-Process, Beg. P 15,000A. Purchased raw material on account P28,500.B. Put material into production: P15,000 of direct material and P3,000 of indirect material.C. Accrued payroll of P90,000, of which 40% was direct labor, 20% was indirect labor, 20% was selling expense, and the remainder wasadministrative expense. Then after, the total payroll was paid.D. Depreciation for the Machinery is P40,000. The Machinery is used by all departments. 50% is used by Production Department, 25% bySales Department, and the remaining is used for administrative purposes.E. Received utility bill for the month amounting to P10,000. 50% is for Production department, 20% is for Sales Department, and 30% foradministrative purposes.F. Paid…
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O c. Finished Goods to be understated by OMR 12,000
the year.
O d. Cost of Goods Manufactured to be overstated by OMR 12,000 for
the year.
Work in Process to be understated by OMR 12,000 at year end.
A Company uses job order costing and has chosen direct labor hours to
allocate its manufacturing overhead. The company estimates that total
direct labor hours to be operated next year are 300,000 hours. The
estimated variable overhead is $10 per hour and the estimated fixed
overhead costs are $500,000. The predetermined overhead rate is:
O a. None of the answers given
O b. S16.67
Oc. $11.67
O d. $7
O e. $1.67
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Chapter 19 Solutions
Horngren's Accounting (12th Edition)
Ch. 19 - Prob. 1QCCh. 19 - When a manufacturing company uses direct...Ch. 19 - When a manufacturing company uses indirect...Ch. 19 - When a manufacturing company uses direct labor, it...Ch. 19 - What is Gell's predetermined overhead allocation...Ch. 19 - What is Gell's actual manufacturing overhead cost?...Ch. 19 - How much manufacturing overhead would Gell...Ch. 19 - What entry would Gell make to adjust the...Ch. 19 - A manufacturing company completed work on a job....Ch. 19 - Prob. 10QC
Ch. 19 - Why do managers need to know the cost of their...Ch. 19 - What types of companies use job order costing...Ch. 19 - What types of companies use process costing...Ch. 19 - What is the purpose of a job cost record?Ch. 19 - Explain the difference between cost of goods...Ch. 19 - A job was started on May 15, completed on June 27,...Ch. 19 - Give the journal entry for raw materials purchased...Ch. 19 - What is the purpose of the raw materials...Ch. 19 - How does the use of direct and indirect materials...Ch. 19 - Give the journal entry for direct and indirect...Ch. 19 - Give five examples of manufacturing overhead...Ch. 19 - What is the predetermined overhead allocation...Ch. 19 - What is an allocation base? Give some examples.Ch. 19 - How is manufacturing overhead allocated to jobs?Ch. 19 - A completed job cost record shows the unit cost of...Ch. 19 - Explain the journal entry for the allocation of...Ch. 19 - Give the journal entry for the completion of a...Ch. 19 - Why does the sale of a completed job require two...Ch. 19 - Prob. 19RQCh. 19 - If a company incurred $5,250 in actual overhead...Ch. 19 - Refer to the previous question. Give the journal...Ch. 19 - Explain the terms accumulate, assign, allocate,...Ch. 19 - Why would the manager of a service company need to...Ch. 19 - How is the predetermined overhead allocation rate...Ch. 19 - Distinguishing between job order costing and...Ch. 19 - Accounting for materials Back Country manufactures...Ch. 19 - Accounting for materials Learning Objective 2...Ch. 19 - Accounting for labor Learning Objective 2...Ch. 19 - Accounting for overhead Learning Objective 3 Oak...Ch. 19 - Allocating overhead Learning Objective 3 Job 303...Ch. 19 - Calculating predetermined overhead allocation...Ch. 19 - Completing and selling products Learning Objective...Ch. 19 - Comparing actual to allocated overhead Learning...Ch. 19 - Calculating under/overallocated overhead Learning...Ch. 19 - Prob. S19.11SECh. 19 - Prob. S19.12SECh. 19 - Prob. S19.13SECh. 19 - Prob. S19.14SECh. 19 - Distinguishing between job order costing and...Ch. 19 - Defining terminology Learning Objectives 1,2 Match...Ch. 19 - E19-17 Accounting for job costs
Learning Objective...Ch. 19 - E19-18 Recording materials and labor...Ch. 19 - Prob. E19.19ECh. 19 - Allocating and adjusting manufacturing overhead...Ch. 19 - Prob. E19.21ECh. 19 - Prob. E19.22ECh. 19 - Prob. E19.23ECh. 19 - Preparing job order costing journal entries...Ch. 19 - Prob. E19.25ECh. 19 - E19-26 Determining missing amounts
Learning...Ch. 19 - Prob. E19.27ECh. 19 - Prob. P19.28APGACh. 19 - Prob. P19.29APGACh. 19 - Prob. P19.30APGACh. 19 - Prob. P19.31APGACh. 19 - Prob. P19.32APGACh. 19 - Prob. P19.33APGACh. 19 - Prob. P19.34BPGBCh. 19 - Prob. P19.35BPGBCh. 19 - Prob. P19.36BPGBCh. 19 - Prob. P19.37BPGBCh. 19 - Prob. P19.38BPGBCh. 19 - Using job order costing in a service company...Ch. 19 - Using Excel to calculate a predetermined overhead...Ch. 19 - P19-41 Accounting for manufacturing overhead
This...Ch. 19 - Prob. 19.1TIATCCh. 19 - Prob. 19.1DCCh. 19 - Prob. 19.1FC
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