Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259727016
Author: HILTON, Ronald, PLATT, David
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 59P
To determine
Calculate the missing amounts and prepare the T-accounts.
Expert Solution & Answer
Explanation of Solution
- 1. Calculate the sales revenue for November.
Thus, the sales revenue for November is $216,000.
- 2. Calculate the ending balance of
accounts receivable .
Thus, the ending balance in accounts receivable is $19,000.
- 3. Calculate the cost of raw materials purchased during November.
Thus, the cost of raw materials purchased during November is $70,000.
- 4. Calculate the ending balance in the work-in-process inventory.
Step 1: Calculate the budgeted direct-labor hours.
Step 2: Calculate the predetermined overhead rate.
Step 3: Calculate the ending balance in the work-in-process inventory.
Thus, the ending balance in the work-in-process inventory is $38,000.
- 5. Calculate the amount of direct labor added to work in process during November.
Thus, the amount of direct labor added to work in process during November is $80,000.
- 6. Calculate the amount of applied overhead for November.
Step 1: Calculate the direct-labor hours.
Step 2: Calculate the amount of applied overhead for November.
Thus, the applied overhead for November is $60,000.
- 7. Calculate the cost of goods completed during November.
Thus, the cost of goods completed during November is $150,000.
- 8. Calculate the amount of raw materials used during November.
Thus, the amount of raw materials used during November is $40,000.
- 9. Calculate the amount of October 31 balance in raw-material inventory.
Thus, the amount of October 31 balances in raw-material inventory is $15,000.
- 10. Calculate the amount of overapplied or underapplied for November.
Thus, there is no underapplied or overapplied overhead for the month November.
Prepare the T-accounts.
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Chapter 3 Solutions
Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment
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