Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools? a. $200 per change, $64 per
Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools? a. $200 per change, $64 per setup, $5 per inspection b. $180 per change, $76 per setup, $4 per inspection c. $150 per change, $64 per setup, $4 per inspection d. $180 per change, $76 per setup, $5 per inspection e. $200 per change, $5 per setup, $64 per inspection Short Answer The following costs are attributed to the Quilt Company: Purchase of raw materials (all direct) $291,100 Direct labour cost $141,800 Manufacturing overhead costs $198,100 Inventories: Beginning raw materials $10,000 Ending raw materials $900 Beginning work in process $20,000 Ending work in process $15,900 Beginning finished goods $20,000 Ending finished goods $6,800 Quilt Company used a 120% predetermined overhead rate based on direct labour cost. Required: 7. Calculate the cost of goods manufactured. 8. What was the cost of goods sold before adjusting for any under or over applied overhead? 9. By how much was manufacturing overhead cost under or over applied? 10. Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?
Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?
a. $200 per change, $64 per setup, $5 per inspection
b. $180 per change, $76 per setup, $4 per inspection
c. $150 per change, $64 per setup, $4 per inspection
d. $180 per change, $76 per setup, $5 per inspection
e. $200 per change, $5 per setup, $64 per inspection
Short Answer
The following costs are attributed to the Quilt Company:
Purchase of raw materials (all direct)
$291,100
Direct labour cost
$141,800
Manufacturing overhead costs
$198,100
Inventories:
Beginning raw materials
$10,000
Ending raw materials
$900
Beginning work in process
$20,000
Ending work in process
$15,900
Beginning finished goods
$20,000
Ending finished goods
$6,800
Quilt Company used a 120% predetermined overhead rate based on direct labour cost.
Required:
7. Calculate the cost of goods manufactured.
8. What was the cost of goods sold before adjusting for any under or over applied overhead?
9. By how much was manufacturing overhead cost under or over applied?
10. Would the summary journal entry to close any under or over applied manufacturing overhead cost be a debit or credit to COGS?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started