Please Help! Will Rate Back!
Bennett Company manufactures a single product (an adventure van). On 1/1/20, Bennett had the following balances in its inventory accounts: Raw Materials Inventory $ 15,460.00 Work-in-Process Inventory $110,428.02 Finished Goods Inventory $ Bennett uses a Product Costing System. Bennett uses a Normal Costing System with a single plantwide rate to assign overhead. Bennett uses direct labor hours (DLHours) as the activity driver. Bennett utilizes linear regression analysis for budgeting and forecasting purposes, and any overhead variances are deemed immaterial. Bennett collected data from 1996-2019 and regressed annual manufacturing overhead (the dependent variable) on annual direct labor hours (the independent variable). The results are below: The results are below: SUMMARY OUTPUT Regression Statistics Multiple R 0.929121657 R Square 0.863267054 Adjusted R Square 0.85705192 Standard Error 1290.951496 Observations 24 ANOVA df F Significance F 5.61698E-11 1 138.897579 Regression Residual Total SS MS 231480561 231480561 36664226.83 1666555.765 268144787.8 22 23 Intercept DLHours Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 1616.004533 1506.773989 1.072492985 0.295122909 -1508.853462 4740.862528 -1508.853462 4740.862528 5.68520717 0.482390734 11.7854817 5.61698E-11 4.684790018 6.685624321 4.684790018 6.685624321 As of 1/1/20, Bennett expects to incur 2,500 direct labor hours in 2020. Bennett's production workers earn $15.00 per hour. What journal entries (if any) should Bennett record on 12/31/20? Round all calculations and dollar values to 4 digits. Bennett Company manufactures a single product (an adventure van). On 1/1/20, Bennett had the following balances in its inventory accounts: Raw Materials Inventory $ 15,460.00 Work-in-Process Inventory $110,428.02 Finished Goods Inventory $ Bennett uses a Product Costing System. Bennett uses a Normal Costing System with a single plantwide rate to assign overhead. Bennett uses direct labor hours (DLHours) as the activity driver. Bennett utilizes linear regression analysis for budgeting and forecasting purposes, and any overhead variances are deemed immaterial. Bennett collected data from 1996-2019 and regressed annual manufacturing overhead (the dependent variable) on annual direct labor hours (the independent variable). The results are below: The results are below: SUMMARY OUTPUT Regression Statistics Multiple R 0.929121657 R Square 0.863267054 Adjusted R Square 0.85705192 Standard Error 1290.951496 Observations 24 ANOVA df F Significance F 5.61698E-11 1 138.897579 Regression Residual Total SS MS 231480561 231480561 36664226.83 1666555.765 268144787.8 22 23 Intercept DLHours Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 1616.004533 1506.773989 1.072492985 0.295122909 -1508.853462 4740.862528 -1508.853462 4740.862528 5.68520717 0.482390734 11.7854817 5.61698E-11 4.684790018 6.685624321 4.684790018 6.685624321 As of 1/1/20, Bennett expects to incur 2,500 direct labor hours in 2020. Bennett's production workers earn $15.00 per hour. What journal entries (if any) should Bennett record on 12/31/20? Round all calculations and dollar values to 4 digits
