Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, I need some help calculating overhead for this one problem I was assigned for my Accounting class. I simply can't figure out how to

Hi, I need some help calculating overhead for this one problem I was assigned for my Accounting class. I simply can't figure out how to do it, and I need help understanding and answering each box below.

On May 15, the Stamping Department accepted Job 051507A to make 1,000 funnels. Materials requisitioned were 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The cost driver used by the Stamping Department is the drop-forge strokes indicated by a machine-mounted counter. Overhead is applied at $2.25 for each drop-forge stroke. Additionally, $375.00 of overhead is applied to each job due to setup and tear down. Assume the number of drop-forge strokes is 1,115. Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6.5 hours of labor.

Upon completion, the job was transferred to Finished Goods Inventory.

Journalize all events as of May 15. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places.

image text in transcribed
On May 15, the Stamping Department accepted Job 051507A to make 1,000 funnels. Materials requisitioned were 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The cost driver used by the Stamping Department is the drop-forge strokes indicated by a machine-mounted counter. Overhead is applied at $2.25 for each drop-forge stroke. Additionally, $375.00 of overhead is applied to each job due to setup and e number of drop-forge strokes is 1,115. Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6.5 hours of labor. Upon completion, the job was transferred to Finished Goods Inventory. Journalize all events as of May 15. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places. Materials Work in Process Raw Materials Overhead Work in Process Factory Overhead 10 01 10 00 10 00 00 00 Labor Work in Process Wages Payable Finished Goods Finished Goods Inventory Work in Process

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

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

5th Edition

126078035X, 978-1260780352

More Books

Students also viewed these Accounting questions

Question

What is the specific purpose of an acceptable use policy?

Answered: 1 week ago