Question
Bush Company budgeted that it would incur $176,000 of manufacturing overhead costs in the upcoming period. By the end of the period, Bush had actually
Bush Company budgeted that it would incur $176,000 of manufacturing overhead costs in the upcoming period. By the end of the period, Bush had actually incurred manufacturing overhead costs totaling $200,000. Other information from the company's accounting records is provided below:
Beginning Work in Process Inventory was $50,000, whereas ending Work in Process Inventory was $40,000. | |
Total manufacturing costs of $590,000 were charged to Work in Process Inventory during the period. This amount included direct materials costs of $320,000. | |
Workers logged 5,000 direct labor hours during the period. | |
Beginning Finished Goods Inventory was $60,000. | |
The Manufacturing Overhead account had a $40,000 debit balance immediately prior to closing at the end of the period. Manufacturing overhead was applied to jobs throughout the period on the basis of direct labor hours. | |
Prior to any adjustment to account for overapplied or underapplied manufacturing overhead, Cost of Goods Sold had a $580,000 debit balance. | |
Sales for the period totaled $1,520,000, whereas selling and administrative expenses totaled $700,000. |
a. | Determine how much manufacturing overhead was applied to jobs during the period. | ||||||||||
Manufacturing overhead applied?__________
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