Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of the year, Sinja Manufacturing established its predetermined overhead rate by using the following cost predictions: overhead costs, $1,200,000, and direct materials

image text in transcribed
image text in transcribed
image text in transcribed
At the beginning of the year, Sinja Manufacturing established its predetermined overhead rate by using the following cost predictions: overhead costs, $1,200,000, and direct materials costs, $800,000. At year-end, the company's records show that actual overhead costs for the year are $1,050,000. Actual direct materials costs had been assigned to jobs as follows. Jobs completed and sold $472,000 Jobs in finished goods inventory 102,750 Jobs in work in process inventory 210,250 Total actual direct materials cost $785,000 Instructions: Answer each of the following questions by filling out the answer blanks below. There is one blank for each question. The answer for Question 1 goes in the first blank, for Question 2 in the second blank, and so on and so forth. Ensure that numerical responses are in comma format and are rounded to the nearest dollar, unless instructed otherwise. For example: 1; 50; 1,000; 150,000; 1,000,000; etc. Do not include symbols (i.e. $). Other specific instructions might be present in the question, so make sure that you follow those as well if they are present. Failure to follow these instructions will result in answers being marked incorrect. While most answers will be numerical, some may be alphanumerical, meaning that you will include words and numbers. 1. Determine the predetermined overhead rate using predicted direct materials costs. Round your answer to two decimals. 2. What amount is debited to the Factory Overhead account for the current year? 3. What amount is credited to the Factory Overhead account for the current year? 4. Determine the amount by which overhead has been over- or underapplied. Provide the amount of over- or underapplication, and indicate overapplied or underapplied. (Example: 200 underapplied or 500 overapplied.) 5. Provide the adjusting journal entry to correct the over- or underapplied overhead. (In the blank provide your answer in the following format: debit "account name" "amount"; credit "account name" "amount" - an example is: debit accounts receivable 20,000; credit sales 20,000. Keep in mind that more than two accounts may be included in the entry. If that is the case, you will have multiple accounts credited/debited causing your answer to look more like this: debit "account name" "amount"; credit "account name" "amount"; credit"account name" "amount")

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

Step: 3

blur-text-image

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

Safety Health And Environmental Auditing A Practical Guide

Authors: Simon Watson Pain

2nd Edition

1138557153, 9781138557154

More Books

Students also viewed these Accounting questions