Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me answer question e and f QUESTION 2 My Game Station Sdn Bhd makes gaming devices using latest automated technology The company uses

Please help me answer question e and f

image text in transcribed

QUESTION 2 My Game Station Sdn Bhd makes gaming devices using latest automated technology The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine hours. The following estimates were used in preparing the predetermined overhead tate at the beginning of the year Machine hours 22,500 Manufacturing overhead cost RM320,000 During the year 2020, a surplus of gaming devices on the market resulted in cutting back production. The company's cost records revealed the following actual cost and operating data for the year Machine hours 25,000 Manufacturing overhead cost RM385,000 Inventories at year-end Raw Materials RM12,000 Work in process (includes overhead applied of RM12,000) RM40,000 Finished goods includes overhead applied of RM40.000) RM150,000 Cost of goods sold includes overhead applied of RM400.000 RM152,000) REQUIRED HAAGO13 MANAGEMENT ACCOUNTING Compute the predetermined overhead ente. (b) Compute the underapplied or overapplied overhead (c) Determine how much of the underapplied or overapplied overhead computed in (2) will be allocated to Work in Process (WIP), Finished Goods (FG) and Cost of Goods Sold (COGS) on the basis of the amount of overtread applied that remains in each account at the end of the year (d) Prepare journal entry to record the underapplied or overapplied overhead computed in (e) What if Analysis (e) (Repeat Requirement () to (e), assuming the estimated machine hours is 24,000 only () Repeat Requirement (n) to (b) assuming the actual manufacturing overhead cost is RM355,000 (not RM285,000) (H) How would you adjust and record for the amount of underapplied or overapplied overhead computed in (b) (iv) Prepare journal entry to record the underapplied or overapplied overhead computed in (c) Explain why does a company apply predetermined overhead rates rather than assign actual manufacturing overhead costs to jobs

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

Internal Auditing An Integrated Approach

Authors: Richard E. Cascarino

2nd Edition

0702172693, 978-0702172694

More Books

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago