Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Used 9,900 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1. Used 9,900 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhatd into cost of goods sold on April 30. Complete this question by entering your answers in the tabs below. Compute the amount of overapplied or underapplied overhead. Journal entry worksheet Record the entry to close the overhead account. Note: Enter debits before credits. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sole Complete this question by entering your answers in the tabs below. Compute Erkens Company's predetermined overhead rate for the year. Erkerns Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,750,000 of factory overhead costs and use 70,000 machune hours. Etkens Company recorded the following eventsduring the month of Aprit: a. Purchased 202,000 pounds of materials on account the cost was $4.50 per pound b. issued 131,000 pounds of materials to production, of which 20,500 pounds were used as indirect materials c. Incurted direct labor costs of $295,000 and $51,000 of indirect labor costs d. Recorded depreciation on equipment for the month, $77,900 e. Recorded expired insurance costs for the manufacturing property, $4.600 t. Paid $9.600 cash for utilities and other miscellaneous items for the manufacturing plant g. Completed Job Hilf costing $8,600 and Job 628 costing $82,500 during the month and transferred them to the Finished goods inventory account h. Shipped Job G28 to the customer duting the month. The job was invoiced at 35% above cost. I. Used 9,900 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year 2. Prepare journal entries to record the events that occurted during April. 3-a. Compute the amount of overapplied or underapplied overhead 3.b. Prepare a joumal entry to close overapplied or underapplied overhead into cost of goods sold on April 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Auditing Handbook

Authors: J. P. Russell,

4th Edition

0873898478, 978-0873898478

More Books

Students also viewed these Accounting questions