Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Question
Chapter 17, Problem 20E
1.
To determine
Calculate predetermined
2.
To determine
Prepare
3.
To determine
Prepare T-Accounts for manufacturing overhead account.
4.
To determine
Prepare journal entry to record adjust under allocated or over allocated manufacturing overhead, and identify whether this entry increase or decrease the cost of goods sold.
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i)Compute Fielder’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 February
b)For indirect material issued to production in February
c)For total manufacturing labour incurred in February
d)To assign manufacturing labour to the appropriate accounts
e)For other manufacturing overhead incurred
f)For manufacturing overhead applied to production for February, given thatFieldermanufacturing company worked 2,750 machine hours.
g)To move the completed jobs into finished goods inventory
h)To sell the two completed jobs on account
Required:
1. Compute Harriott’s predetermined manufacturing overhead rate for 2020.
2. State the journal entries necessary to record the above transactions in the general journal:
For direct materials used in November
For indirect material issued to production in November
For total manufacturing labour incurred in November
To assign manufacturing labour to the appropriate accounts
For other manufacturing overhead incurred
For manufacturing overhead applied to production for November, given that Harriott manufacturing company worked 2,860 machine hours.
To move the completed jobs into finished goods inventory
To sell the two completed jobs on account.
3. Calculate the manufacturing overhead variance for Harriott and state the journal entries necessary to dispose of the variance.
(a) Compute Elite’s predetermined manufacturing overhead rate for 2020. (b) Calculate the total manufacturing costs for each job. (c) Using the total figures, record the above transactions in the general journal.
Chapter 17 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Would the following companies most likely use a...Ch. 17 - Prob. 6TICh. 17 - Record the following journal entries for Smith...Ch. 17 - Prob. 8TICh. 17 - Prob. 9TICh. 17 - Prob. 10TI
Ch. 17 - Prob. 11TICh. 17 - Prob. 12TICh. 17 - The following information pertains to Smith...Ch. 17 - Prob. 14TICh. 17 - Prob. 15TICh. 17 - Prob. 16TICh. 17 - Wesson Company is a consulting firm. The firm...Ch. 17 - Prob. 18TICh. 17 - Would an advertising agency use job order or...Ch. 17 - Prob. 2QCCh. 17 - When a manufacturing company uses indirect...Ch. 17 - When a manufacturing company uses direct labor, it...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - Gell Corporation manufactures computers. Assume...Ch. 17 - A manufacturing company completed work on a job....Ch. 17 - For which of the following reasons would David...Ch. 17 - Why do managers need to know the cost of their...Ch. 17 - What types of companies use job order costing...Ch. 17 - What types of companies use process costing...Ch. 17 - What is the purpose of a job cost record?Ch. 17 - Explain the difference between cost of goods...Ch. 17 - A job was started on May 15, completed on June 27,...Ch. 17 - Give the journal entry for raw materials purchased...Ch. 17 - What is the purpose of the raw materials...Ch. 17 - How does the use of direct and indirect materials...Ch. 17 - Prob. 10RQCh. 17 - Give five examples of manufacturing overhead...Ch. 17 - What is the predetermined overhead allocation...Ch. 17 - What is an allocation base? Give some examples.Ch. 17 - How is manufacturing overhead allocated to jobs?Ch. 17 - A completed job cost record shows the unit cost of...Ch. 17 - Prob. 16RQCh. 17 - Give the journal entry for the completion of a...Ch. 17 - Prob. 18RQCh. 17 - Explain the difference between underallocated...Ch. 17 - If a company incurred 5,250 in actual overhead...Ch. 17 - Prob. 21RQCh. 17 - Explain the terms accumulate, assign, allocate,...Ch. 17 - Prob. 23RQCh. 17 - Prob. 24RQCh. 17 - Would the following companies most likely use job...Ch. 17 - Prob. 2SECh. 17 - Analyze the following T-accounts to determine the...Ch. 17 - Prob. 4SECh. 17 - Oak Outdoor Furniture manufactures wood patio...Ch. 17 - Job 303 includes direct materials costs of 550 and...Ch. 17 - Calculating predetermined overhead allocation...Ch. 17 - Lincoln Company completed jobs that cost 38,000 to...Ch. 17 - Columbus Enterprises reports the following...Ch. 17 - The T-account showing the manufacturing overhead...Ch. 17 - Adjusting Manufacturing Overhead Justice Companys...Ch. 17 - Prob. 12SECh. 17 - Prob. 13SECh. 17 - Prob. 14SECh. 17 - Prob. 15ECh. 17 - Defining terminology Match the following terms to...Ch. 17 - Prob. 17ECh. 17 - Goldenrod Company makes artificial flowers and...Ch. 17 - Selected cost data for Classic Print Co. are as...Ch. 17 - Prob. 20ECh. 17 - Prob. 21ECh. 17 - Prob. 22ECh. 17 - Jordan Company has the following information for...Ch. 17 - Journalize the following transactions for Marges...Ch. 17 - Prob. 25ECh. 17 - Analyze the following T-accounts, and determine...Ch. 17 - Prob. 27ECh. 17 - Clement Manufacturing makes carrying cases for...Ch. 17 - Ki Technology Co. manufactures DVDs for computer...Ch. 17 - Superior Construction, Inc. is a home builder in...Ch. 17 - Accounting for manufacturing overhead Prestige...Ch. 17 - Mighty Stars produces stars for elementary...Ch. 17 - Bluebird Design, Inc. is a Web site design and...Ch. 17 - Sutherland Manufacturing makes carrying cases for...Ch. 17 - Ye Technology Co. manufactures DVDs for computer...Ch. 17 - Meadow Construction, Inc. is a home builder in...Ch. 17 - Accounting for manufacturing overhead Elegant...Ch. 17 - Hero Stars produces stars for elementary teachers...Ch. 17 - Skylark Design, Inc. is a Web site design and...Ch. 17 - Accounting for manufacturing overhead This problem...Ch. 17 - Granite Construction Incorporated is a major...Ch. 17 - Hiebert Chocolate, Ltd. is located in Memphis. The...Ch. 17 - Prob. 1FC
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- Ali Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department X and machine hours in Department Z. In establishing the predetermined overhead rates for 2020, the following estimates were made for the year. Department X Z Manufacturing overhead $78000 $75000 Direct labor costs $60000 $60000 Direct labor hours 5000 4000 Machine hours 10000 15000 During March, the job cost sheets showed the following costs and production data. Department X Z Direct materials used $9200 $6400 Direct labor costs $4800 $5000 Manufacturing overhead incurred $6600 $6210 Direct labor hours 400 420 Machine hours 800 1260 Required: Compute the predetermined overhead rate for…arrow_forwardREQUIRED: (a) If RBSB uses a plantwide overhead rate: (i) Calculate the predetermined overhead rate for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (b) If RBSB uses departmental overhead rate: (i) Calculate the predetermined overhead rate for each department for the year 2020. (ii) Determine the total of manufacturing overhead cost applied to Job 120. (c) Between the plantwide rate in part (a) (ii) and the departmental rate in part (b) (ii) above, which manufacturing overhead rate would you recommend to be applied for Job 120? Justify your answer.arrow_forwardJulius Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined overhead rate. The following information relates to the Julius Inc. for the year ended December 31, 2020: Job No. 915 Job No. 916 Job No. 917 Job in process, January 1, 2020: Direct Materials 40,000 60,000 30,000 30,000 40,000 20,000 Direct Labor Factory Overhead Costs added during 2020: Materials 20,000 100.000 ? 10,000 200,000 ? 100,000 400,000 ? Labor Factory Overhead Additional information: 1. Actual overhead for the year 2020 amounted to P350,000. 2. Job Nos. 915 and 916 were completed and transferred to finished goods during year 2020. 3. Job No. 915 was sold during year 2020., 4. The gross profit rate is 20% based on cost. Required: (1) Prepare the entry for the costs added during 2020 and costs transferred to finished goods when using periodic and perpetual methods. |arrow_forward
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