Answer not provided 61869

Name: answer not provided 61869
Uploaded: 2023-07-14T22:04:47-08:00
Duration: 2 min 6 s
Channel: Madhur L
Description: answer not provided 61869

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Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials: $60,500 Work in process: $20,800 Finished goods: $57,600 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $11.25 per direct labor-hour was based on a cost formula that estimated $450,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: 1. Raw materials were purchased on account: $622,000. 2. Raw materials used in production: $591,800. All of the raw materials were used as direct materials. 3. The following costs were accrued for employee services: direct labor: $400,000; indirect labor: $150,000; selling and administrative salaries: $280,000. 4. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing): $400,000. 5. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities): $300,000. 6. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. 7. Jobs costing $1,360,750 to manufacture according to their job cost sheets were completed during the year. 8. Jobs were sold on account to customers during the year for a total of $3,330,000. The jobs cost $1,370,750 to manufacture according to their job cost sheets. 11. What is the journal entry to record the cost of goods sold referred to in item 8 above? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Madhur L.

The Harriott manufacturing company uses job order costing system. The company uses machine hours to apply overhead cost to jobs. At the beginning of 2020, the company estimated that 31,400 machine hours would be worked and $5,024,000 overhead cost would be incurred during 2020. The following activities took place in the work in process inventory during February: WIP Inventory A/C November 1 Bal. b/f Direct Materials Used $51,250 256,400 Other transactions incurred: ? Indirect material issued to production was $40,360 ? Total manufacturing labour incurred in November was $368,000, 75% of this amount represented direct labour. ? Other manufacturing overhead costs incurred for November amounted to $340,490. ? Two jobs were completed with total costs of $384,000 & $270,000 respectively. They were sold on account at a margin of 33?% on sales. Required: i) Compute Harriott’s predetermined manufacturing overhead rate for 2020. ii) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in November b) For indirect material issued to production in November c) For total manufacturing labour incurred in November d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead applied to production for November, given that Harriott manufacturing company worked 2,860 machine hours. g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Calculate the gross profit earned by Harriott on the jobs completed. vi) Determine the balance in work in process inventory on November 30

Patha S.

Luzadis Company makes furniture using the 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 predetermined overhead rate was based on a cost formula that estimates $520,000 of total manufacturing overhead for an estimated activity level of 65,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year: Machine-hours 54,000 Manufacturing overhead cost $ 488,000 Inventories at year-end: Raw materials $ 19,000 Work in process (includes overhead applied of $25,920) $ 117,000 Finished goods (includes overhead applied of $73,440) $ 331,500 Cost of goods sold (includes overhead applied of $332,640) $ 1,501,500 Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Adi S.

Transcript

00:01 Hello students, let us solve the problem.

00:02 Here is a question.

00:03 Buehner corporation is a manufacturer that use a job order costing on jan 1st.

00:08 The company inventory balance where as follow? so, we have following information given in the question but our actual question is to find out a journal entry only for 8th sub question.

00:19 So, that will be job were sold on account to the customer during the year for a total $3 ,330 ,000.

00:26 The job cost is $1 ,370 ,750 to the manufacturer according to their job cost sheet.

00:35 So, here we need to prepare the journal entry for this.

00:39 Let us start solving this.

00:42 So, first we need to identify the account involved in the transaction in this case...