Shane's Shovels produces small, custom earthmoving equipment for landscaping companies. Manufacturing overhead is allocated to work in

Question:

Shane's Shovels produces small, custom earthmoving equipment for landscaping companies. Manufacturing overhead is allocated to work in process, using an estimated overhead rate. During April, transactions for Shane's Shovels included the following:

Direct materials issued to production................. $180,000

Indirect materials issued to production..................30,000

Other manufacturing overhead incurred............... 250,000

Overhead allocated....................................... 225,000

Direct labor costs.......................................... 75,000

Beginning and ending work in process were both zero.

REQUIRED

A. What was the cost of jobs completed in April?

B. Was manufacturing overhead under applied or over applied? By how much?

C. Write out the journal entries for these transactions, including the adjustment.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Management Measuring Monitoring And Motivating Performance

ISBN: 9781118168875

2nd Canadian Edition

Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook

Question Posted: