Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 33BEB
Prepare
At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information:
During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March:
At the end of March, Jobs 86, 87, and 89 were completed. Only Job 87 was sold. On March 1, the balance in Finished Goods was zero.
Required:
- 1. Calculate the overhead rate based on direct labor cost. (Note: Round to three decimal places.)
- 2. Prepare a brief job-order cost sheet for the four jobs. Show the balance as of March 1 as well as direct materials and direct labor added in March. Apply overhead to the four jobs for the month of March, and show the ending balances.
- 3. Calculate the ending balances of Work in Process and Finished Goods as of March 31.
- 4. Calculate the Cost of Goods Sold for March.
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Chapter 4 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 4 - What are job-order costing and process costing?...Ch. 4 - Give some examples of service firms that might use...Ch. 4 - What is normal costing? How does it differ from...Ch. 4 - Why are actual overhead rates seldom used in...Ch. 4 - Explain how overhead is assigned to production...Ch. 4 - What is underapplied overhead? When Cost of Goods...Ch. 4 - What is overapplied overhead? When Cost of Goods...Ch. 4 - Suppose that you and a friend decide to set up a...Ch. 4 - Why might a company decide to use departmental...Ch. 4 - What is the role of materials requisition forms in...
Ch. 4 - Carver Company uses a plantwide overhead rate...Ch. 4 - Prob. 12DQCh. 4 - Is the cost of a job related to the price charged?...Ch. 4 - If a company decides to increase advertising...Ch. 4 - How can a departmental overhead system be...Ch. 4 - (Appendix 4B) Describe the difference between...Ch. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - (Appendix 4B) Explain the difference between the...Ch. 4 - Which of the following statements is true? a....Ch. 4 - The ending balance of which of the following...Ch. 4 - In a normal costing system, the cost of a job...Ch. 4 - The predetermined overhead rate equals a. actual...Ch. 4 - Prob. 5MCQCh. 4 - Applied overhead is a. an important part of normal...Ch. 4 - The overhead variance is overapplied if a. actual...Ch. 4 - Which of the following is typically a job-order...Ch. 4 - Which of the following is typically a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Wilson Company has a predetermined overhead rate...Ch. 4 - (Appendix 4A) When a job costing 2,000 is finished...Ch. 4 - (Appendix 4B) Those departments responsible for...Ch. 4 - Prob. 16MCQCh. 4 - (Appendix 4B) An example of a producing department...Ch. 4 - (Appendix 4B) An example of a support department...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - Predetermined Overhead Rate, Overhead Application...Ch. 4 - Overhead Variance (Over- or Underapplied), Closing...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Prepare Job-Order Cost Sheets, Predetermined...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Predetermined Overhead Rate, Overhead Application...Ch. 4 - Overhead Variance (Over- or Underapplied), Closing...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Prepare Job-Order Cost Sheets, Predetermined...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Job-Order Costing versus Process Costing a....Ch. 4 - Job-Order Costing versus Process Costing a. Auto...Ch. 4 - Calculating the Predetermined Overhead Rate,...Ch. 4 - Calculating the Predetermined Overhead Rate,...Ch. 4 - Calculating Departmental Overhead Rates and...Ch. 4 - Job-Order Costing Variables On July 1, Job 46 had...Ch. 4 - Source Documents For each of the following...Ch. 4 - Applying Overhead to Jobs, Costing Jobs Jagjit...Ch. 4 - Applying Overhead to Jobs, Costing Jobs Gorman...Ch. 4 - Balance of Work in Process and Finished Goods,...Ch. 4 - Job-Order Cost Sheets, Balance in Work in Process...Ch. 4 - Cost Flows Consider the following independent...Ch. 4 - Job Cost Flows Roseler Company uses a normal...Ch. 4 - Calculation of Work in Process and Cost of Goods...Ch. 4 - (Appendix 4A) Journal Entries Yurman Inc. uses a...Ch. 4 - (Appendix 4B) Direct Method of Support Department...Ch. 4 - (Appendix 4B) Sequential Method of Support...Ch. 4 - Overhead Application and Job-Order Costing Heurion...Ch. 4 - Prob. 54PCh. 4 - Calculating Ending Work in Process, Income...Ch. 4 - Overhead Applied to Jobs, Departmental Overhead...Ch. 4 - Overhead Rates, Unit Costs Folsom Company...Ch. 4 - Calculate Job Cost and Use It to Calculate Price...Ch. 4 - (Appendix 4A) Unit Cost, Ending Work in Process,...Ch. 4 - (Appendix 4A) Journal Entries, Job Costs The...Ch. 4 - (Appendix 4A) Predetermined Overhead Rates,...Ch. 4 - (Appendix 4A) Overhead Application, Journal...Ch. 4 - (Appendix 4A) Journal Entries, T-Accounts Lowder...Ch. 4 - (Appendix 4B) Support Department Cost Allocation...Ch. 4 - (Appendix 4B) Support Department Cost Allocation:...Ch. 4 - Overhead Assignment: Actual and Normal Activity...Ch. 4 - Tonya Martin, CMA and controller or the Parts...
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