Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

checking work 4 small parts 141,800 481,800 61,800 106,600 At the beginning of the year Learer Company's manager estimated total direct labor cost to be

checking work 4 small parts
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
141,800 481,800 61,800 106,600 At the beginning of the year Learer Company's manager estimated total direct labor cost to be $2,518,000. The manager also estimated the following overhead costs for the year, Indirect labor $ 561,000 Rent on factory building Factory utilities 157,800 Depreciation-Factory equipment Repairs expense-Factory equipment Indirect materials Total estimated overhead costs $ 1,510,880 For the year, the company incurred $1,525,400 of actual overhead costs. It completed and sold five jobs with the following direct lobor costs: Job 201, $605,800, Job 202. $564 800: Job 203. $299,800, Job 204, $717,800, and Job 205, $315,800 In addition, Job 206 is in process at the end of the year and had been charged $18,800 for direct labor. No jobs were in process at the beginning of the year The company's predetermined overhead rate is based on a percent of direct labor cost. Q Required 1-. Determine the predetermined overhead rate for the year. 1-b. Determine the overhead applied to each of the six jobs during the year. 1-c. Determine the over or underapplied overhead at the year-end 2. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end, Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Requc R2 Determine the predetermined overhead rate for the year. Numerator Predetermined overhead rate Denominator 1 Predetermined overhead rate Predetermined overhead rate RA Reg 18> Req 1A Req 1B Req 10 Reg 2 Determine the overhead applied to each of the six jobs during the year. Job Number Overhead applied 201 Direct Labor $ 605,800 564,800 299,800 202 203 204 717.800 205 206 315,800 18,800 $ 2,522,800 Total $ 0 Req 1A Req 1B Reg 10 Req 2 Determine the over- or underapplied overhead at the year-end. Factory Overhead Req 1A Req 1B Req 10 Req 2 Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold at year-end. View transaction list Journal entry worksheet Record the entry to allocate any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. Note: Enter debits before credits. General Journal Date December 31 Debit Credit Record entry Clear entry View general journal

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

Financial Accounting And Reporting A Global Perspective

Authors: Herv Stolowy, Yuan Ding

5th Edition

1473740207, 978-1473740204

More Books

Students also viewed these Accounting questions

Question

What courses does he/she teach?

Answered: 1 week ago

Question

Describe forecasting requirements.

Answered: 1 week ago