MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 3, Problem 3.5E

1.

To determine

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.

  Predetermined overhead allocation rate = Estimated Manufacturing overhead CostAllocation base 

To calculate: The amount of overhead cost assigned to the job.

2.

To determine

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.

  Predetermined overhead allocation rate = Estimated Manufacturing overhead CostAllocation base 

To calculate: The unit product cost for the job.

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ob 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 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 8
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