MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 2, Problem 17E
To determine
Concept introduction:
Over-applied overheads means when applied overheads are more than the actual manufacturing overheads incurred then it is known over-applied overheads.
Under-applied overheads means when applied overheads are less than the actual overheads incurred then it is known under-applied overheads.
Requirement -1:
We have to determine the
To determine
Concept introduction:
Job costing means calculation of material cost, labor and overhead expenses for a specific job. In this method cost can be traced to individual jobs and if any cost is incurred excess in a jon then it can be charged from that customer.
Over-applied overheads means when applied overheads are more than the actual manufacturing overheads incurred then it is known over-applied overheads.
Under-applied overheads means when applied overheads are less than the actual overheads incurred then it is known under-applied overheads.
Requirement -2:
We have to determine the T account for factory overhead.
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Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,100,
direct labor of $3,700, and applied overhead of $2,960. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost.
During July, Job 120 is sold (on credit) for $28,500, Job 121 is started and completed, and Job 122 is started and still in process at the
end of July. Custom Cabinetry incurs the following costs during July.
Job 120
Job 121
Direct materials used
Direct labor used
$ 1,500
3,500
$ 6,600
4,300
Job 122
$2,500
4,000
1. Prepare journal entries for the following July transactions and events a through e.
a. Direct materials used.
b. Direct labor used.
c. Overhead applied.
d. Sale of Job 120.
e. Cost of goods sold for Job 120. Hint. Job 120 has costs from June and July.
2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs
in Finished Goods Inventory at June…
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,700, direct labor of $3,600, and applied overhead of $2,880. Custom Cabinetry applies overhead at the rate of 80% of direct labor cost. During July, Job 120 is sold (on credit) for $24,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July.
Job 120
Job 121
Job 122
Direct materials used
$ 1,000
$ 6,100
$ 2,900
Direct labor used
3,800
4,000
3,900
1. Prepare journal entries for the following July transactions and events a through e.a. Direct materials used.b. Direct labor used.c. Overhead applied.d. Sale of Job 120.e. Cost of goods sold for Job 120. Hint: Job 120 has costs from June and July.2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory…
Chapter 2 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 2 - Prob. 1MCQCh. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQ
Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - What events cause debits to be recorded in the...Ch. 2 - GOOGLE Google applies overhead to product costs....Ch. 2 - Prob. 10DQCh. 2 -
11. Why must a company use predetermined...Ch. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 1QSCh. 2 - The left column lists the titles of documents and...Ch. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Exercise 15-13 Analysis of cost flows C2
As of the...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Exercise 15-7 Cost flows in a job order costing...Ch. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - In December 2014, Custom Mfg. established...Ch. 2 - In December 2014, Infodeo established its...Ch. 2 - Moonrise Bakery applies factory overhead based on...Ch. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 1PSACh. 2 - Bergamo Bays computer system generated the...Ch. 2 - Widmer Watercrafts predetermined overhead rate for...Ch. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 1PSBCh. 2 - Cavallo Mfg.s computer system generated the...Ch. 2 - Prob. 3PSBCh. 2 - In December 2014, Pavelka Companys manager...Ch. 2 - Prob. 5PSBCh. 2 - SERIAL PROBLEM Business Solutions P1 P2 P3 (This...Ch. 2 - Prob. 1GLPCh. 2 - Apples financial statements and notes in Appendix...Ch. 2 - Prob. 2BTNCh. 2 - Prob. 3BTNCh. 2 - COMMUNICATING IN PRACTICE C1 C2
BTN 15-4 Assume...Ch. 2 - Prob. 5BTNCh. 2 - Prob. 6BTNCh. 2 - Prob. 7BTNCh. 2 - Prob. 8BTNCh. 2 - Prob. 9BTN
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