How do you solve this problem? Complete this question by entering your answers in the tabs below.OverheadGeneralAbsorptionJournalDetermine whether there is over or underapplied overhead.Factory OverheadOverhead AbsorptionGeneral Journal Exercise 15-13 Adjusting factory overhead LO P4The following information is available for Lock-Tite Company, which produces special-order security products and uses a job ordercosting system.April 30May 31Inventories68,00024,50051,600Raw materialsWork in processFinished goodsActivities and information for MayRaw materials purchases (paid with cash)Factory payroll (paid with cash)Factory overheadIndirect materials$51,00011,800$71,000226,000377,00031,00096,000136,0001,560,000Indirect laborOther overhead costsSales (received in cash)Predetermined overhead rate based on direct labor cost70%Determine whether there is over or underapplied overhead.Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $51,000 11,800 71,000 $ 68,000 24,500 51,600 Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials 226,000 377,000 31,000 96,000 136,000 1,560,000 Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 70% Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $51,000 11,800 71,000 $ 68,000 24,500 51,600 Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials 226,000 377,000 31,000 96,000 136,000 1,560,000 Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 70% Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter19: Job Order Costing

Section: Chapter Questions

Problem 19.4APR: Analyzing manufacturing cost accounts Fire Rock Company manufactures Designer paddle boards in a...

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Problem 19-4A (Algo) Preparing job cost sheets, recording costs, preparing inventory ledger accounts LO P1, P2, P3 [The following information applies to the questions displayed below.] Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's production activities during May follows. a. Purchased raw materials on credit, $220,000. b. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 $ 48,500 34,000 19,400 23,000 7,200 132,100 Job 140 Total direct materials Indirect materials Total materials requisitions 21,500 $ 153,600 c. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 Job 137 Job 138 Job 139 Job 140 Total direct labor Indirect labor Total labor cost $ 12,100 10,600 37,700 39,400 3,600 103,400 26,000 $ 129,400 d. Applied overhead to Jobs 136, 138, and 139. e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory. f. Sold Jobs 136…
Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2 Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead Required Fanning Company $ 170,900 26,000 $ 21,500 Finch Company $ 238,400 24,000 14,000 a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Required A Required B Complete this question by entering your answers in the tabs below. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Fanning Company: < Prev 2…
Exercise 11-6A (Algo) Recording overhead costs in T-accounts LO 11-2 Rundle Company and Rooney Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Rundle Actual manufacturing overhead Aatual direet labor hours Underapplied overhead Overapplied overhead Сoпpany $119,150 21,000 Rooney Company $262,250 25,000 11,000 $ 21,500 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rate for each company. (Round your answers to 2 decimal places.) Per Direct Labor Hour Rundle Compamy Rooney Company Predetermined overhead rate Required A Required B>
k ces Item Hourly labor wages Factory supervision Production engineer Factory janitorial work Selling, general, and administrative salaries Total payroll costs View transaction list Journal entry worksheet < Description 810 hours @ $19 per hour 180 hours for Job 101 E 260 hours for Job 102 370 hours for Job 103 = A Required: 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $38 per direct labor hour. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. B $ 3,420 4,940 7,030 Record Fairfield Company's payroll costs to be paid at a later date. Total Cost $ 15,390 3,550 6,700 1,500 9,100 $36,240
Required information Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate is 200% of direct labor. Information on the company’s production activities during May follows. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $ 49,500 Job 137 33,500 Job 138 19,200 Job 139 22,800 Job 140 6,800 Total direct materials 131,800 Indirect materials 20,500 Total materials used $ 152,300 Paid $15,000 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,200 Job 137 10,600 Job 138 38,100 Job 139 39,000 Job 140 3,800…
Exercise 15-18 (Algo) Recording transactions in job order costing LO P1, P2, P3, P4 Prepare journal entries to record transactions a through h. Raw materials purchased on credit, $100,000. Direct materials used, $42,000. Indirect materials used, $15,000. Direct labor used, $36,000. Indirect labor used, $14,000. (Record using Factory Wages Payable.) Paid cash for other actual overhead costs, $8,250. Applied overhead at the rate of 120% of direct labor cost. Transferred cost of jobs completed to finished goods, $68,175. Sales of jobs on credit was $97,000. Cost of jobs sold was $68,175.
OBJ. 2 EX 19-5 Entry for factory labor costs A summary of the time tickets for the current month follows: Job No. Amount Job No. Amount 100 $ 3,500 Indirect $ 9,100 101 6,650 111 8,620 104 21,900 115 2,760 108 14,440 117 18,550 Journalize the entry to record the factory labor costs.
Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3 Skip to question [The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate is 200% of direct labor. Information on the company’s production activities during May follows. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $ 49,500 Job 137 33,500 Job 138 19,200 Job 139 22,800 Job 140 6,800 Total direct materials 131,800 Indirect materials 20,500 Total materials used $ 152,300 Paid $15,000 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $ 12,200 Job 137 10,600 Job 138 38,100 Job 139 39,000 Job 140 3,800 Total direct labor…
Chapter 5- Practice Problems eBook Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost 1 EX05 11.ALGO On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following costs: 2 EX 05.12 ALGO Job 70 Job 71 Job 72 EX 05.14. ALGO Direct materials $1,700 $2,000 $850 Direct labor 1,900 1,200 900 Applied overhead 1,520 960 720 During August, four more jobs were started, Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76 Direct materials $800 $1,235 $3,500 $5,000 $300 $560 $80 Direct labor 1,000 1,400 2,200 1,800 600 900 170 Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Required: 1. Calculate the predetermined overhead rate based on direct labor cast. of direct labor cost 2 Caloudate th ending balance fur nach job as of Augunt 31 Ending talance
Problem 15-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company’s manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Cash $ 77,000 Accounts receivable 46,000 Raw materials inventory 28,000 Work in process inventory 0 Finished goods inventory 9,000 Prepaid rent 3,000 Accounts payable $ 11,500 Notes payable 14,500 Common stock 30,000 Retained earnings (prior year) 92,000 Sales 189,000 Cost of goods sold 106,000 Factory overhead 28,000 General and administrative expenses 40,000 Totals $ 337,000 $ 337,000 These six…
Problem 15-3A (Algo) Computing and recording job costs; preparing income statement and balance sheet LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company’s manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Cash $ 77,000 Accounts receivable 46,000 Raw materials inventory 28,000 Work in process inventory 0 Finished goods inventory 9,000 Prepaid rent 3,000 Accounts payable $ 11,500 Notes payable 14,500 Common stock 30,000 Retained earnings (prior year) 92,000 Sales 189,000 Cost of goods sold 106,000 Factory overhead 28,000 General and administrative expenses 40,000 Totals $ 337,000 $ 337,000 These six…
PR 19-1A Entries for costs in a job order cost system OBJ. 2 Munson Co. uses a job order cost system. The following data summarize the operations related to production for July: a. Materials purchased on account, $225,750 b. Materials requisitioned, $217,600, of which $17,600 was for general factory use C. Factory labor used, $680,000, of which $72,300 was indirect d. Other costs incurred on account for factory overhead, $330,000; selling expenses, $180,000; and administrative expenses, $126,000 e. Prepaid expenses expired for factory overhead, $27,500; for selling expenses, $8,100; and for administrative expenses, $5,250 f. Depreciation of office building was $44,500; of office equipment, $16,800; and of fac- tory equipment, $55,100 g. Factory overhead costs applied to jobs, $548,000 h. Jobs completed, $1,140,000 i. Cost of goods sold, $1,128,000 Instructions Journalize the entries to record the summarized operations.