Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CCT2211 - Intermediate Managerial Accounting 1 (2021/202 Time len 0 38 26 Question 1 Not yet answered K-Co Company uses a job order costing system

image text in transcribed
image text in transcribed
image text in transcribed
CCT2211 - Intermediate Managerial Accounting 1 (2021/202 Time len 0 38 26 Question 1 Not yet answered K-Co Company uses a job order costing system in its factory. When the 2021 budget was being prepared K-Co estimated that they would require 80,000 machine hours (MH's) which it will use as their overhead allocation base. Total estimated manufacturing overhead for 2021 is $6,000,000 Marked out of 2.00 P Flag question The May balance sheet showed the following inventory balances: Work in Process (Job 998) $3,600 Finished Goods (Job 997) $28,000 The GL showed that during June K-Co purchased $48,000 of raw materials and sold jobs 997 and 998. During the month of June actual costs incurred were: DM used DL used Actual MOH Job 998 14,000 22,000 7,500 Job 999 18,000 25,000 10,000 Total 43,500 53,000 MH used 90 200 During June jobs 998 and 999 were completed. a) Calculate the predetermined overhead rate (POR): (2 marks) K-Co Company uses a job order costing system in its factory. When the 2021 budget was being prepared K-Co estimated that they would require 80,000 machine hours (MH's) which it will use as their overhead allocation base. Total estimated manufacturing overhead for 2021 is $6,000,000. The May balance sheet showed the following inventory balances: Work in Process (Job 998) $3,600 Finished Goods (Job 997) $28,000 The GL showed that during June K-Co purchased $48,000 of raw materials and sold jobs 997 and 998. During the month of June actual costs incurred were: DM used DL used Actual MOH Job 998 14,000 22,000 7,500 Job 999 18,000 25,000 10,000 Total 43,500 53,000 MH used 90 200 During June jobs 998 and 999 were completed. b) Prepare the journal entries to record job 998 for June (4 marks) Time left 0:37:39 K-Co Company uses a job order costing system in its factory. When the 2021 budget was being prepared K-Co estimated that they would require 80,000 machine hours (MH's) which it will use as their overhead allocation base. Total estimated manufacturing overhead for 2021 is $6,000,000. The May balance sheet showed the following inventory balances: Work in Process (Job 998) $3,600 Finished Goods (Job 997) $28,000 The GL showed that during June K-Co purchased $48,000 of raw materials and sold jobs 997 and 998. During the month of June actual costs incurred were: DM used DL used Actual MOH Job 998 14,000 22,000 7,500 Job 999 18,000 25,000 10,000 Total 43,500 53,000 MH used 90 200 During June jobs 998 and 999 were completed. c) Calculate the total overapplied or underapplied overhead for all jobs for the month of June. (4 marks)

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

Forensic And Investigative Accounting

Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson

9th Edition

0808053221, 9780808053224

More Books

Students also viewed these Accounting questions

Question

What are the HR forecasting techniques?

Answered: 1 week ago

Question

Define succession planning. Why is it important?

Answered: 1 week ago

Question

Distinguish between forecasting HR requirements and availability.

Answered: 1 week ago