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.
Step by Step Answer:
A Notice that the company uses normal costing overhead is allocated using an estimated rate However under normal costing the company is required to ma...View the full answer
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
