Finished goods ledger Materials ledger Typically used by companies whose products are indistinguishable from each other Process cost system Stock ledger Activity-based costing Applied overhead is less than actual overhead incurred Job order cost system Overapplied overhead Underapplied overhead The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $46,900 of materials b. Used $36,100 of direct materials in production, C. Incurred 553,900 of direct labor wages. d. Incurred $76,000 of factory Overhead. e. Transferred $126,200 of work in process to finished goods. f. Sold goods for $225,600. 9. Sold goods with a cost of $100,400 h. Incurred $57,700 of selling expense. L. Incurred $25,300 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company, Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Operating expenses: Total operating expenses b. Determine the inventory balances at the end of the first month of operations: Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Operating expenses: Total operating expenses b. Determine the inventory balances at the end of the first month of operations. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials Work in process Finished goods Winston Company estimates that the factory overhead for the following year will be $818,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 35,600 hours. The total machine hours for the year were 54,100. The actual factory overhead for the year was $1,237,000 a. Determine the total factory overhead amount applied. Round to the nearest dollar. b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number. c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank Kaumajet Pactory produces two products: table lamps and desk Lamps. It has two separate departments: fabrication and Assembly. The factory overhead budget for the Fabrication Department is $423,624, using 278,700 direct labor hours. The factory overhead budget for the Assembly Department is 5747,734, using 88,600 direct labo hours If a desk tamp requires 5 hours of fabrication and 8 hours of assembly, the amount of factory overhead that Kaunajet Factory will allocate to each unit of desk tampuste the multiple production department factory overhead rate method with an allocation base of direct labor hours is Oa: 5171.81 Ob. 313.22 OS Od 3512 The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales $235,770 Gross profit 137,450 Cost of goods manufactured 117,890 Indirect labor 51,160 Factory depreciation 7,780 Materials purchased 72,620 Total manufacturing costs for the period 135,570 Materials inventory, ending 9,670 Using the above information, determine the following missing amounts: a. Cost of goods sold b. Finished goods inventory at the end of the month c. Direct materials cost III d. Direct labor cost e. Work in process inventory at the end of the month Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly, Data for the products and departments are listed below. Product Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit Blinks 1,087 3 8 Dinks 2,129 2 All of the machine hours take place in the Fabrication department, which has an estimated overhead of 895,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $106,200. Ramapo Company uses a single plantwide overhead rate to apply all tactory overhead costs based on direct labor hours. The factory overhead allocated per unit of a Is Os 1864 Ob. 553.57 O $8037 Od: 51.22
