a. Southwick Company uses a job order costing system. On November 1, $15,000 of direct materials...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. Southwick Company uses a job order costing system. On November 1, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepare the general journal entries to record this requisition b. A company that uses a job order costing system incurred $10,000 of factory payroll during May. Prepare the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor. c. EXP, Incorporated had the following activities during its most recent period of operations: (a) Purchased raw materials on credit for $140,000. (b) Used raw materials in production of $130,000 (80% direct and 20% indirect). (c) Incurred factory labor costs of $250,000 (70% direct and 30% indirect). (d) Incurred factory utilities costs of $20,000 that are immediately paid in cash. (e) Applied overhead at 80% of direct labor costs. (f) Recorded factory depreciation, $22,000. Prepare journal entries to record the above transactions. Problem 8: The following information is available for a custom manufacturer. Inventories Raw materials, beginning Work in process, beginning Finished goods, beginning Cost of goods manufactured Cost of goods sold (not considering over- or underapplied overhead) Sales Predetermined overhead rate based on direct materials used Activities and information for the period Raw materials purchases Direct materials used Direct labor Factory overhead (actual) Indirect materials Indirect labor Other overhead costs 76,000 24,800 17,500 190,58 0 166,40 0 200,00 0 80% 36,920 86,500 45,600 18,600 32,800 8,600 (1) Compute the ending balances of Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory. (2) Compute overapplied or underapplied overhead. Problem 9: North Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Activity Rounded Edge Squared Edge Total $ 62,400 $ 89,600 $ 152,000 47,600 72,000 142,800 216,000 $ 280,000 $440,000 North Company's controller wants to apply activity-based costing to allocate the $216,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following information is collected. Budgeted Cost Purchasing $10,800 Depreciation 113,200 92,000 $ 216,000 Setup Total 24,400 73,200 $ 160,000 20,000 $8 Activity Cost Driver 28,000 $ 10 Purchase orders Machine hours Setups Activity Usage Squared Edge Rounded Edge 218 orders 1,000 hours 80 setups Total 862 orders 1,080 orders 3,000 hours 4,000 hours 420 setups 500 setups Required: 1. Compute the activity rate for each activity using activity- based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. a. Southwick Company uses a job order costing system. On November 1, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepare the general journal entries to record this requisition b. A company that uses a job order costing system incurred $10,000 of factory payroll during May. Prepare the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor. c. EXP, Incorporated had the following activities during its most recent period of operations: (a) Purchased raw materials on credit for $140,000. (b) Used raw materials in production of $130,000 (80% direct and 20% indirect). (c) Incurred factory labor costs of $250,000 (70% direct and 30% indirect). (d) Incurred factory utilities costs of $20,000 that are immediately paid in cash. (e) Applied overhead at 80% of direct labor costs. (f) Recorded factory depreciation, $22,000. Prepare journal entries to record the above transactions. Problem 8: The following information is available for a custom manufacturer. Inventories Raw materials, beginning Work in process, beginning Finished goods, beginning Cost of goods manufactured Cost of goods sold (not considering over- or underapplied overhead) Sales Predetermined overhead rate based on direct materials used Activities and information for the period Raw materials purchases Direct materials used Direct labor Factory overhead (actual) Indirect materials Indirect labor Other overhead costs 76,000 24,800 17,500 190,58 0 166,40 0 200,00 0 80% 36,920 86,500 45,600 18,600 32,800 8,600 (1) Compute the ending balances of Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory. (2) Compute overapplied or underapplied overhead. Problem 9: North Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Activity Rounded Edge Squared Edge Total $ 62,400 $ 89,600 $ 152,000 47,600 72,000 142,800 216,000 $ 280,000 $440,000 North Company's controller wants to apply activity-based costing to allocate the $216,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following information is collected. Budgeted Cost Purchasing $10,800 Depreciation 113,200 92,000 $ 216,000 Setup Total 24,400 73,200 $ 160,000 20,000 $8 Activity Cost Driver 28,000 $ 10 Purchase orders Machine hours Setups Activity Usage Squared Edge Rounded Edge 218 orders 1,000 hours 80 setups Total 862 orders 1,080 orders 3,000 hours 4,000 hours 420 setups 500 setups Required: 1. Compute the activity rate for each activity using activity- based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing.
Expert Answer:
Answer rating: 100% (QA)
a General Journal Entries for Requisition of Direct and Indirect Materials Date November 1 1 To record the requisition of direct materials Debit Work in Process Inventory Direct Materials 15000 Credit ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
The Brinker Company uses a job order costing system at its local plant. The plant has a machining department and a finishing department. The company uses machine hours to allocate machining...
-
The Gonzalez Company uses a job order costing system at its plant in Green Bay, Wisconsin. The plant has a machining department and a finishing department. The company uses two cost driver rates for...
-
Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct material cost. At year-end, the Work in Process Inventory account shows the following. 1....
-
In 2014, Elbert Corporation had net cash provided by operating activities of $531,000; net cash used by investing activities of $963,000; and net cash provided by financing activities of $585,000. At...
-
Cuda, Inc., is thinking about adding a new product line. Marketing surveys indicate that sales of the new product would be 150,000 units. Each unit sells for $8. Direct variable costs would be $6.25...
-
A vapor-compression refrigeration system is conventional except that a countercurrent heat exchanger is installed to subcool the liquid from the condenser by heal exchange with the vapor stream from...
-
4M Inc. showed income tax on its tax return of \(\$ 4,800\) on December 31,2020 , and had a tax rate of \(25 \%\). If taxable income were equal to pretax GAAP income for 2020, determine the amount of...
-
J Bryant, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31. Bryant sells its coats for $250 each. Selling expenses consist...
-
All the following transactions lead to temporary timing differences except: the use of straight-line amortization for accounting purposes The use of provisions for gift card sales the recognition of...
-
1. What opportunities did Melissa identify, and how did she capitalize on those opportunities? 2. How did Melissas background help her identify and tackle the problems she discovered in the beauty...
-
January 9 February 2 Dr. Wilmot Dr. Wilmot $225.00 1,525.00 As they do every year, John and Jane donated to several charities in 2018. They have official receipts for all their contributions:...
-
Will the gate in Problem 44 ever open? Problem 44 A flowrate measuring device is installed in a horizontal pipe through which water is flowing. A U-tube manometer is connected to the pipe through...
-
Discuss at least three different types of health care organizations and how their differences could affect the strategic planning process that they use.
-
Explain the differences in how personal values are reflected in an organizations values between an entrepreneurial health care firm and a large governmental health agency. Do you think these...
-
When an automobile brakes, the fuel gage indicates a fuller tank than when the automobile is traveling at a constant speed on a level road. Is the sensor for the fuel gage located near the front or...
-
Sometimes it is difficult to open an exterior door of a building because the air distribution system maintains a pressure difference between the inside and outside of the building. Estimate how big...
-
What does the QuickBo1. Match the following selections from QuickBooks Online Navigation Bar with best answer Accounting Expenses My Accountant Reports Sales - View Customers List - Invite Accountant...
-
QUESTION 9 HC-O-C-R R-C-O-CH HC-O-P-O-CH-CH-NH3* O || O a. Phosphatidic acid, Serine O b. Lysophosphatidic acid, Serine, Free FA O c. Lysophosphatidylserine, Free FA O d. 2 Free FAs, Serine, Glycerol...
-
A company seeking a line of credit at a bank was turned down. Among other things, the bank stated that the companys 2 to I current ratio was not adequate. Give reasons why a 2 to 1 current ratio...
-
Airlines sometimes offer reduced rates during certain times of the week to members of a businesspersons family if they accompany him or her on trips. How does the concept of relevant costs enter into...
-
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Calculate earnings per share, the price-eam-m'ssmjngs ratio, the gross...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Perform a vertical analysis of the balance sheets and income statements for...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Calculate asset turnover, accounts receivable turnover, days sales in...
Study smarter with the SolutionInn App