Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ross Refrigeration manufactures luxury commercial refrigerators. K-Ross completed but did not sell one refrigerator (Fridge A) worth $9,500 during the last period. K-Ross did

 

Ross Refrigeration manufactures luxury commercial refrigerators. K-Ross completed but did not sell one refrigerator (Fridge A) worth $9,500 during the last period. K-Ross did not have any other jobs in process at the beginning of the month (except for Finished Goods, the beginning balance in all other inventory accounts was 0). REQ A: Use the information provided, record transactions A-G in the t-accounts (pleese label your entry with the ensuction letter-below) A. K-Ross purchased $35,000 in raw materials on account/credit B. K-Ross uses $8,000 of direct materials to begin production of two refrigerators (Fridge B and C). C. K-Ross incurs $11,000 in direct labor (for Fridge B and C) to be paid in the next period. D. K-Ross paid $8,400 cash for delivery drivers wages. E. K-Ross must determine how much manufacturing overhead should be allocated to refrigerators in production. The company uses machine hours as its cost driver. Use the following information record actual and applied overhead (assume actual overhead was paid for in Cash). In the space below, show your work for calculating the PDMOH rate and Applied MOH. DESCRIPTION BUDGETED ACTUAL Fridge B Fridge C Total PDMOH RATE Cost $2,100 $1,300 $3,400 Machine Hours 140 60 200 APPLED MOH Cost $2,600 $1,000 $3,600 Machine Hours 150 75 225 F. K-Ross completed production of Fridge B. Costs attributable to Fridge B include $4,200 of direct material $5,000 of direct labor, and applied manufacturing overhead. G. K-Ross sold Fridge A on account for $10,300.

Step by Step Solution

3.45 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

A Raw Materials 35000 Accounts Payable B WorkinProcess Inventory 8000 Raw Materials C WorkinProcess ... 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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

3rd edition

77826485, 978-0077722074, 77722078, 978-0077826482

More Books

Students also viewed these Accounting questions

Question

Define variable. Also discuss variable initialization.

Answered: 1 week ago

Question

Was there an interaction of history and treatment effects?

Answered: 1 week ago

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago