Concept explainers
1.
Concept introduction:
Predetermined overhead allocation:
Predetermined overhead allocation is a method of allocation of overhead costs to the product units. Under this method, the overhead costs are allocated to the product units using the allocation base. The allocation base is identified based on the type of production activities.
To calculate: The amount of overhead cost assigned to the job.
2.
Concept introduction:
Predetermined overhead allocation:
Predetermined overhead allocation is a method of allocation of overhead costs to the product units. Under this method, the overhead costs are allocated to the product units using the allocation base. The allocation base is identified based on the type of production activities.
To calculate: The unit product cost for the job.
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Chapter 3 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
- 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?arrow_forwardCushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01arrow_forwardJob cost sheets show the following information: Job January February March Completed Sold AA2 $2,600 $1,400 February Not sold AA4 4,840 January February AA5 3,230 February March ААЗ 3,408 $2,321 April Not sold Total $7,440 $8,038 $2,321 What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for January, February, and March? Work in Finished Process Goods COGS January $ February $ Marcharrow_forward
- How much is total cost of goods manufactured? A company uses job order costing. At the beginning of February, two jobs were in process: Job 769 Job 772 Materials P4,000 P1,400 2,000 3,000 There was no inventory of finished goods on February 1. During the month, Jobs 773, 774, 776, 778 and 779 were started. Materials requisitions for February totaled P26,000, direct labor cost, P20,000 and actual factory overhead, P32,000. Factory overhead is applied at a rate of 150% of direct labor cost. The only job still in process at the end of February is job 779, with a materials cost of P2,800 and direct labor cost of P1,800. Job 776, the only finished job on hand at the end of the Direct Labor 600 Applied Factory Overhead 900 month, has a total cost of P4,000.arrow_forwardProblem 1.b.: Computation of Costs of Goods Manufactured (COGM).Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.Work-in-process Inventory (WIP)Accounts $ Accounts $Beginning balance $19,500 COGM ?Direct materials (DM) $76,200Direct labor (DL) $120,000MOH allocated $72,000Ending Balance $24,300Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.Solution: Formula:Beginning WIP+ TMC (total manufacturing costs) for the periodDM usedDL incurredMOH allocatedTMC in WIP- Ending WIP= COGMarrow_forwardS Exercise 3-5 (Algo) Calculating Ending Inventories and Cost of Goods Sold [LO 3-5] Morrow Corporation had only one job in process during May-Job X32Z-and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May, Data concerning that job appear below: Job X32Z Beginning balance Charged to the job during May Direct materials Direct labor Manufacturing overhead applied Units completed Units sold during May $ 11,000 $ 11,000 $ 3,200 $ 14,800 160 70 The company's total manufacturing overhead applied always equals its total actual manufacturing overhead. Required: 1. What is the cost of goods sold for May? 2. What is the total value of the finished goods inventory at the end of May? 3. What is the total value of the work in process inventory at the end of May? 1. Cost of goods sold 2. Ending finished goods inventory 3. Ending work in process inventoryarrow_forward
- Info in images Question relating to the images: 3. Info in image "ACC PT2" 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. Unadjusted cost of goods sold [ ] 5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below: Direct materials $8,600 Direct labor [ ] Manufacturing overhead [ ] Work in process inventory $38,000arrow_forwardXYZ Company has the following balances for the current month: Direct materials used OMR 24,00O Direct labor OMR 36,800 Sales salaries OMR 19,200 Indirect labor OMR 4,800 Production manager's salary OMR 9,600 Marketing costs OMR 6,400 Factory lease OMR 14,400 What is total manufacturing overhead? a. None of the given answer. b. OMR 20,800 С. OMR 25,600 d. OMR 28,800 е. OMR 35,200arrow_forwardJob cost sheets show the following information: Job January February March Completed Sold AA2 $2,600 $1,000 February Not sold AA4 4,837 January February AA5 3,260 February March AA3 3,411 $2,320 April Not sold Total $7,437 $7,671 $2,320 What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for January, February, and March? Work inProcess FinishedGoods COGS January $fill in the blank 1 $fill in the blank 2arrow_forward
- how much is total cost of goods manufactured? A company uses job order costing, At the beginning of February, two jobs were in process: Job 769 Job 772 Materials P4.000 P1.400 Direct labor 7000 600 Appled Factory Overhead 3,000 900 There was no inventory of finished goods on February 1 During the month, Jobs 773, 774, 776, 778 and 779 were started Matera's requisitions for February totaled P26.000, direct mobor cost, P20,000 and actual factory overhead. P32.000- Factory overhead is applied at a rate of 150% of direct labor cost. The only job still in process at the end of February is 779, with a materials cost of P2,800 and direct labor cost of P1 800 Job 776, the onlY finished rob on hand at tee end of the month, has a total cost of P4,000, how much is total cost of goods manufactured?arrow_forward1 Assume Delph uses departmental predetermined overhead rates based on machine-hours.a Compute the departmental predetermined overhead rates.b Compute the total manufacturing cost assigned to Job D-70 and Job C-200.c If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 andJob C-200?d What is Delph's cost of goods sold for the year? 2 Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based onmachine hours.a Compute the plantwide predetermined overhead rate.b Compute the total manufacturing cost assigned to Job D-70 and Job C-200.c If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 andJob C-200?d What is Delph's cost of goods sold for the year? 3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of…arrow_forwardJob cost sheets show the following information: Job January February March Completed Sold AA2 $2,600 $1,400 February Not sold AA4 4,837 January February AA5 3,260 February March AA3 3,408 $2,319 April Not sold Total $7,437 $8,068 $2,319 What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for January, February, and March? Work inProcess FinishedGoods COGS January $fill in the blank 1 $fill in the blank 2 February fill in the blank 3 fill in the blank 4 $fill in the blank 5 March fill in the blank 6 fill in the blank 7 fill in the blank 8arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
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