Question
Strauss Corporation uses normal costing in connection with its job costing system. Beginning and ending balances for the month of December are as follows: Account
Strauss Corporation uses normal costing in connection with its job costing system. Beginning and ending balances for the month of December are as follows:
Account Beginning Balance - December 1st Ending Balance - December 31st Direct Materials $ 1,200 $ 7,600 Work in Process $ 5,800 $ 8,100 Finished Goods $ 3,500 $ 18,500
The following additional information is available: a. Accounts payable account shows a credit for the month in the amount of $65,400. b. Cost of goods manufactured for the period was $225,000. c. The Overhead Control account shows a debit balance of $100,000 before adjustment. d. The company uses normal costing and applies overhead at the rate of 120% of direct-labor cost.
1) Compute the total amount of materials requisitioned into production for the period.
2) Conversion costs for the period totaled:
3) Applied overhead for the period was:
4) Normal cost of goods sold for the period is:
5) Actual overhead incurred during the period was:
6) Indicate the mis-applied overhead for period, including BOTH the amount and direction.
7) Using the most theoretically correct manner based on the information given, the journal entry to dispose of under or overapplied overhead would be:
Show all work.
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