MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 3, Problem 24QS
To determine
Concept introduction:
As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.
To prepare:
The
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Prepare journal entries to record the following production activities for Hotwax. 1. Incurred $75,000 of direct labor in its Mixing department and $50,000 of direct labor in its Shaping department (credit Factory Wages Payable). 2. Incurred indirect labor of $10,000 (credit Factory Wages Payable). 3. Total factory payroll of $135,000 was paid in cash.
Prepare journal entries to record the production activities. Paid factory payroll of $95,000.
Prepare journal entries to record the production activities. Incurred $42,000 of direct labor in the Roasting department and $33,000 of direct labor in the Blending department (credit Factory Wages Payable).
Chapter 3 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - What is the main factor for a company in closing...Ch. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 -
14. APPLE Companies such as Apple commonly...Ch. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Process vs. job order operations C1 For each of...Ch. 3 - Prob. 2QSCh. 3 - Prob. 3QSCh. 3 - The following refers to units processed in...Ch. 3 - Prob. 5QSCh. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Prob. 23QSCh. 3 - Prob. 24QSCh. 3 - Prob. 25QSCh. 3 - Prob. 26QSCh. 3 - Prob. 27QSCh. 3 - For each of the following products and services,...Ch. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - During April, the production department of a...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Exercise 16-13AFIFO: Completing a process cost...Ch. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Prob. 17ECh. 3 - RSTN Co. produces its product through two...Ch. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - Prob. 21ECh. 3 - Prob. 22ECh. 3 - Prob. 23ECh. 3 - Prob. 24ECh. 3 - Prob. 25ECh. 3 - Prob. 26ECh. 3 - Prob. 27ECh. 3 - Prob. 1PSACh. 3 - Victory Company uses weighted-average process...Ch. 3 - Prob. 3PSACh. 3 - Prob. 4PSACh. 3 - Prob. 5PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Braun Company produces its product through a...Ch. 3 - Problem 16-4B Weighted average: Process cost...Ch. 3 - Prob. 5PSBCh. 3 - Prob. 6PSBCh. 3 - Prob. 7PSBCh. 3 - (This serial problem began in Chapter 1 and...Ch. 3 - Prob. 3CPCh. 3 - Prob. 1GLPCh. 3 - Apple reports in notes to its financial statements...Ch. 3 - Prob. 2BTNCh. 3 - Prob. 3BTNCh. 3 - Prob. 4BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 6BTNCh. 3 - Prob. 7BTNCh. 3 - Prob. 8BTNCh. 3 - Prob. 9BTN
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- The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?arrow_forwardPrepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.arrow_forwardThe post-closing trial balance of Custer Products, Inc. on April 30 is reproduced as follows: During May, the following transactions took place: a. Purchased raw materials at a cost of 45,000 and general factory supplies at a cost of 13,000 on account (recorded materials and supplies in the materials account). b. Issued raw materials to be used in production, costing 47,000, and miscellaneous factory supplies costing 15,000. c. Recorded the payroll and the payments to employees as follows: factory wages (including 12,000 indirect labor), 41,000; and selling and administrative salaries, 7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.) d. Distributed the payroll in (c). e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. f. Incurred other expenses totaling 11,000. One-fourth of this amount is allocable to the office function. g. Transferred total factory overhead costs to Work in Process. h. Completed and transferred goods with a total cost of 91,000 to the finished goods storeroom. i. Sold goods costing 188,000 for 362,000. (Assume that all sales were made on account.) j. Collected accounts receivable in the amount of 345,000. k. Paid accounts payable totaling 158,000. Required: 1. Prepare journal entries to record the transactions. 2. Set up T-accounts. Post the beginning trial balance and the journal entries prepared in (1) to the accounts and determine the balances in the accounts on May 31. 3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)arrow_forward
- Cavy Company accumulated 550 hours of direct labor on Job 345 and 880 hours on Job 777. The direct labor was incurred at a rate of $16 per direct labor hour for Job 345 and $26 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production. If an amount box does not require an entry, leave it blank. CashFactory OverheadWage ExpenseWages PayableWork in Progreearrow_forwardPrepare journal entries to record the following production activities. 1. Incurred $45,000 of direct labor in the Roasting department and $35,000 of direct labor in the Blending department of direct labor in production (credit Factory Wages Payable). 2. Incurred $25,000 of indirect labor in production (credit Factory Wages Payable). 3. Paid factory payroll. View transaction list Journal entry worksheet Oarrow_forwardA manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $357,800 and direct labor hours would be 47,300. Actual manufacturing overhead costs incurred were $306,900, and actual direct labor hours were 52,100. The entry to apply the factory overhead costs for the year would include a a.credit to Factory Overhead for $393,876 b.debit to Factory Overhead for $306,900 c.debit to Factory Overhead for $393,876 d.credit to Factory Overhead for $357,800 The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments—Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Labor HoursPer Unit Machine HoursPer Unit Rings 960 4 3 Dings 2,050 7 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $89,500. All of the labor hours take place…arrow_forward
- Prepare journal entries to record the following production activities. 1. Incurred $53,000 of direct labor in the Roasting department and $29,000 of direct labor in the Blending department. Credit Factory Wages Payable. 2. Incurred $19,000 of indirect labor in production. Credit Factory Wages Payable. View transaction list Journal entry worksheet < A B Record direct labor incurred, but not yet paid. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journalarrow_forward2 Record the cost of Indirect labor used. Note: Enter debits before credits. Transaction b. Record entry General Journal Clear entry Debit Credit View general journalarrow_forwardPrepare journal entries to record transactions a through h. a. Raw materials purchased on credit, $82,000. b. Direct materials used, $37,500. Indirect materials used, $17,200. c. Direct labor used, $30,000. Indirect labor used, $10,000. (Record using Factory Wages Payable.) d. Paid cash for other actual overhead costs, $7,125. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $54,400. g. Sales of jobs on credit was $77,000. h. Cost of jobs sold was $54,400. View transaction list Journal entry worksheet 1 2 Transaction a. Note: Enter debits before credits. 3 Record raw materials purchased on account. Record entry 4 5 General Journal Clear entry 6 7 8 Debit 9 10 Credit View general journal >arrow_forward
- During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $32,000. The entry to record the actual factory overhead costs incurred is a. Accounts Payable25,000 Factory Overhead25,000 b. Factory Overhead25,000 Wages Payable25,000 c. Work in Process25,000 Wages Payable25,000 d. Factory Overhead32,000 Accounts Payable32,000arrow_forwardDuring May, Bergan Company incurred factory overhead costs as follows: indirect materials, $39,000; indirect labor, $89,200; utilities cost, $18,400; and factory depreciation, $50,800. Journalize the entry on May 30 to record the factory overhead incurred during May. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Bergan Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary…arrow_forwardA manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,700 and direct labor hours would be 41,800. Actual manufacturing overhead costs incurred were $317,200, and actual direct labor hours were 50,100. The journal entry to apply the factory overhead costs for the year would include a a.debit to Factory Overhead for $317,200 b.credit to Factory Overhead for $417,834 c.debit to Factory Overhead for $417,834 d.credit to Factory Overhead for $348,700arrow_forward
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