Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as

image text in transcribed
image text in transcribed
image text in transcribed
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,300 machine hours per year, which represents 25.650 units of output. Annual budgeted fixed factory overhead costs are $256,500 and the budgeted variable factory overhead cost rate is $2.40 per unit . Factory overhead costs are applied on the basis of standard machine hours allowed for units produced, Budgeted and actual output for the year was 18,900 units, which took 40,300 machine hours. Actual fixed factory overhead costs for the year amounted to $250,500 while the actual variable overhead cost per unit was $2.30. Based on the information provided above, provide the correct summary journal entries for actual and applied factory overhead costs (both variable and fixed) for the year. Assume that the company uses a single account, Factory Overhead, to record both actual and applied factory overhead. Also, assume that the only variable overhead cost was electricity and that actual fixed overhead consisted of depreciation of $155,000 and supervisory salaries of $95,500 Finally, assume that both electricity expense and the supervisory salaries expense have been incurred but not yet paid file, both are current liabilities). (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Journal entry worksheet A B > Record the actual overhead costs. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general Journal Journal entry worksheet Record the overhead costs applied to production. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 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

Banking And Finance Issues In Emerging Markets

Authors: William A. Barnett

1st Edition

1787564541, 9781787564541

More Books

Students also viewed these Accounting questions

Question

Discuss how selfesteem is developed.

Answered: 1 week ago

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago

Question

Define self-esteem and discuss its impact on your life.

Answered: 1 week ago