Ch. 2 HW eBook Show Me How ? Factory Overhead Rates, Entries, and Account Balance Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning March 1 $105,200 $901,700 12,700 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for March 24,400 S64,270 $77,700 Actual direct labor hours for March 1,140 Actual machine hours for March 1,900 > a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour C. Journalize the entries to apply factory overhead to production in each factory for March. Factory 1 Factory 2 d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Factory 1 $ Factory 2 $ Check My Work Previous Next > Assignment Score: 57.51% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Ch. 2 HW eBook Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Hours Job 301 Job 302 Job 303 Process Improvement Tom Couro 20 11 5 3 David Clancy 9 17 13 2 Jose Cano 11 15 10 5 The direct labor rate earned per hour by the three employees is as follows: Tom Couro $23 David Clancy 17 > Jose Cano 20 The process improvement category includes training, quality improvement, housekeeping, and other indirect tasks. (Note: Ignore any overtime issues, if applicable.) a. Joumalize the entry to record the factory labor costs for the week. If an amount box does not require an entry, leave it blank. Work in Process Factory Overhead Wages Payable Feedback Check My Work Increase the work in process for the direct labor and factory overhead for the indirect labor. Multiply each employee's rate by the hours worked. b. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements at the end of the week? The direct labor costs for the completed jobs would become part of the finished goods inventory. The direct labor costs for Job 303 would be remain part of the work in process inventory Check My Work Previous Next > Assignment Score: 57.51% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Ch. 2 HW BROOK 0 Cost of Materials Issuances Under the FIFO Method An incomplete subsidiary ledger of materials inventory for May is as follows: Balance a. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. Received Issued Receiving Materials Unit Report Quantity Requisition Quantity Amount Price Number Number Unit Date Quantity Amount price 340 $8 $2.720 May 1 May 4 21 240 $10 105 3B0 May 10 27 160 12 May 21 118 230 May 27 F Check My Work a. Calculate the amount of each materials issue, using FIFQ. In the Balance section, separate cach different unit price and its quantity b. Determine the materials inventory balance at the end of May. Test Chuck My Work b. Calculate the amount of each materials issue, using FIFO, in the Balance section, separate each different unit price and its quantity c. Journalize the summary entry to transfer materials to work in process Work in Process Materials Check My Work Next Assignment Score: 57.51% All work saved. Email Instructor Save and Exit Submit Assignment for Gradine
