Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

solve part A and B as soon as possible. URGENT HELP REQUIRED. i'll surely give u Thumbs up. $3.00 Q.2 Savallas Company is highly automated

solve part A and B as soon as possible. URGENT HELP REQUIRED. i'll surely give u Thumbs up.
image text in transcribed
$3.00 Q.2 Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products based on computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours .... .85,000 Fixed manufacturing overhead cost $1,275,000 Variable manufacturing overhead per computer-hour During the year, a severe economic recession resulted in cutting back production and a build-up of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: Computer-hours. 60,000 Manufacturing overhead cost $1,350,000 Inventories at year-end: Raw materials $400,000 Work in process ..$160,000 Finished goods. - $1,040,000 Cost of goods sold $2,800,000 Required: a. Compute the company's predetermined overhead rate for the year. (2.5) b. Compute the underapplied or overapplied overhead for the year. (04) C. Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry. (2.5) d. Assume that the company allocates any underapplied or overapplied overhead to Work in Process, Finished Goods, and cost of Goods Sold based on the amount of overhead applied during the year that remains in each account at the end of the year. These amounts are $43,200 for Work in Process, $280,800 for Finished Goods, and $756,000 for Cost of Goods Sold. Show the calculations for the allocation of under/over applied overhead. (06)

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_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

Financial Accounting Principles And Issues

Authors: Michael H. Granof, Philip W. Bell

4th Edition

013321852X, 978-0133218527

More Books

Students also viewed these Accounting questions