Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 3, Problem 3AE
The Excel worksheet form that appears below is to be used to recreate part of the example relating to Crafters that appear earlier in the Chapter. Download the workbook containing this fun from Connect, where you will also receive? Instruction about how to use this worksheet form
You should proceed to the requirements below only after completing your worksheet.
Required:
3. What happen to under applied (over applied) manufacturing
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Jackson Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.
(Click the icon to view the costs.)
Requirements
1.
2.
3.
Compute Jackson's predetermined overhead allocation rate.
Prepare the journal entry to allocate manufacturing overhead.
Post the manufacturing overhead transactions to the Manufacturing
Overhead T-account. Is manufacturing overhead underallocated or
overallocated? By how much?
4. Prepare the journal entry to adjust for the underallocated or overallocated
manufacturing overhead. Does your entry increase or decrease Cost of
Goods Sold?
Print
Allocated overhead to WIP
Done
- X
Data table
At the beginning of 2024, the company expected to incur the following:
Manufacturing overhead costs
Direct labor costs
$880,000
1,540,000
Machine hours
80,000 hours
At the end of 2024, the company had actually incurred:
Direct labor costs
Depreciation on manufacturing plant and equipment
Property taxes on plant…
solve questions d,e,f from the question given in the image.
Bella Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
Remaining question is in the images provided.
Required:
1. Prepare journal entries to record the transactions given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account.
Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000.
b.
Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in
each account, assuming that Work in Process has a beginning balance of $35,000.
Manufacturing Overhead
C.
Beginning balance
d.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
e.
Debit
Ending balance
✓
✓
✓
38,200✔
22,000✔
106,000 ✓
130,000✔
X Answer is not complete.
Credit
380,000 X
83,800
Beginning balance
b.
C.
f.
Debit
Ending balance
Credit
512,000 X
Chapter 3 Solutions
Introduction To Managerial Accounting
Ch. 3.A - Carmen Company is a manufacturer that completed...Ch. 3.A - Transaction Analysis L03-5 Adams Company is a...Ch. 3.A - Transaction Analysis L03-5 Dixon Company is a...Ch. 3.A - A Transaction Analysis L03-5 Morrison Company uses...Ch. 3.A - Prob. 5PCh. 3.A - Transaction Analysis Brooks Corporation uses a...Ch. 3 - What is the link that connect the schedule of cost...Ch. 3 - What account is credited when overhead cost is...Ch. 3 - What is under applied overhead? Over applied...Ch. 3 - Provide two reason why overhead might be under...
Ch. 3 - What adjustment is made for under applied overhead...Ch. 3 - How do you compute the raw materials used in...Ch. 3 - How do you compute the total manufacturing cost...Ch. 3 - How do you compute the cost of goods manufactured?Ch. 3 - How do you compute the unadjusted cost of goods...Ch. 3 - How do direct labor costs flows through a...Ch. 3 - The Excel work sheet form that appears below is to...Ch. 3 - The Excel worksheet form that appears below is to...Ch. 3 - The Excel worksheet form that appears below is to...Ch. 3 - The Excel worksheet form that appears below is to...Ch. 3 - Bunnell Corporation is a manufacturer tint uses...Ch. 3 - Bunnell Corporation is a manufacturer tint uses...Ch. 3 - Bunnell Corporation is a manufacturer tint uses...Ch. 3 - Prob. 4F15Ch. 3 - Prob. 5F15Ch. 3 - Prob. 6F15Ch. 3 - Prob. 7F15Ch. 3 - Prob. 8F15Ch. 3 - Prob. 9F15Ch. 3 - Bunnell Corporation is a manufacturer tint uses...Ch. 3 - Prob. 11F15Ch. 3 - Prob. 12F15Ch. 3 - Prob. 13F15Ch. 3 - Prob. 14F15Ch. 3 - Prob. 15F15Ch. 3 - Prepare Journal Entries L03-1 Larned Corporation...Ch. 3 - Prepare Accounts L03-2, L03-4 Jurvin Enterprises...Ch. 3 - Schedules of Cost of Goods Manufactured and Cost...Ch. 3 - Under applied and Overapplied Overhead Osborn...Ch. 3 - Journal Entries and T-Accounts 103-1,103-2 The...Ch. 3 - EXERCISE 3-6 Schedules of Cost of Goods...Ch. 3 - Applying Overhead; Cost of Goods Manufactured...Ch. 3 - Applying Overhead; Journal Entries; Disposing of...Ch. 3 - Applying Overhead; T-Accounts; Journal Entries...Ch. 3 - Applying Overhead; Journal Entries; T-accounts...Ch. 3 - PROBLEM 3-11 T-Account Analysis of cost Flows...Ch. 3 - PROBLEM 3-12 Predetermined Overhead Rate;...Ch. 3 - Schedules of Cost of Goods Manufactured and Cost...Ch. 3 - Schedule of Cost of Goods Manufactured; Overhead...Ch. 3 - Journal Entries; T-Accounts; Financial Statements...Ch. 3 - Comprehensive problem L03-1, L03-2, L03-4 Gold...Ch. 3 - Cost Flows; T-Accounts; Income Statement L03-z...
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- Concepts and Terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: Appr Sentence comp a. An example of factory overhead is (electricity used to run assembly line, CEO salary). b. Direct materials costs combined with direct labor costs are called (prime, conversion) costs. c. Long-term plans are called (strategic, operational) plans. d. Materials for use in production are called (supplies, materials inventory). e. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving). f. The plant manager's salary would be considered (direct, indirect) to the product. g. The salaries of salespeople are normally considered a (period, product) cost. Previous Nextarrow_forwardPlease see the attachment for data Question : Prove the agreement fo Work in Process Inventory with job cost sheets pertaining unfinished work. (hint: use a single T-account for Work In Process Inventory). Calculate each of the following, then post each to the T-account : (1) Beginning Balance, (2) Direct Material, (3) Direct Labor, (4) Manufacturing Overhead, and (5) Completed Jobs Thanks in advancearrow_forwardPlease analyze and compute the problems attached on the photos below.Requirements: Compute the equivalent unit of production for direct materials, direct labor and overhead. Prepare a cost of productin report for the Curing Department for May 2018 using the FIFO method of process costing.arrow_forward
- Please show your computations through excel. 2. Using FIFO, compute for the total cost of units transferred out from Finishing Department.arrow_forwardAssuming that all materials are added at the beginning of the process and that labor and factory overhead are applied evenly during the process, compute the figures to be inserted in the blank spaces of the following data, using the weighted average cost method. [Hint: for best success in solving each Case, solve them in numerical order starting with (1)]arrow_forwardCalculate the overhead cost assigned to the job if the company used the overhead rates developed in requirement 1 above. Then calculate the overhead cost assigned to the job if the company used the overhead rates developed in requirement 2. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Step-down method Direct method Total Overhead Costarrow_forward
- Info from image "ACC PT1" can be applied to image "ACC PT2" and (b) below is ssociated with image "ACC PT2" (b) Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply The predetermined overhead rate changed.unanswered The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underapplied (overapplied) manufacturing overhead.unanswered The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.unansweredarrow_forwardbased on the attached numbers calculate the following - please show me the calculations of how you got What is the total amount of product cost listed above? Show your work. What is the total amount of period cost listed above? Show your workarrow_forwardAllocate the service department costs to operating departments and compute the factory overhead rate for P1 and P2 using algebraic method.arrow_forward
- Concepts and terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: Materials for use in production are called (supplies, materials inventory). An example of factory overhead is (electricity used to run assembly line, CEO salary).arrow_forwardNeed some help making a cheet sheet for an up coming test. please provide examples. The exam covers chapters 1 through 13. Here are some suggested study topics: Cost Classifications - variable, fixed and mixed, period and product, direct and indirect, opportunity, sunk, relevant, traceable, common, etc. Calculate the results of changes to cost assumptions (CVP) Calculate net income based on contribution margin values either dollars or % Application of Manufacturing Overhead - calculate predetermined overhead rate or activity rates applied to a product or job - job order using a predetermined overhead rate or rates and activity-based costing calculate over and underapplied overhead calculate adjusted cost of goods sold Job Costing What is the total cost of the job and average cost per unit. Cost of Goods Manufactured and cost of goods sold Calculate break even and target profit Create a contribution format income statement Gross margin calculations - absorption or variable costing…arrow_forwardTaveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available with respect to this job: $ 1,472 Direct materials Direct labor cost Machine-hours used $ 1,056 79 Compute the total manufacturing cost assigned to Job P90. Complete this question by entering your answers in the tabs below. Required 1 Required 2 200,000 $ 2,800,000 $ 2.00 Compute the plantwide predetermined overhead rate. Predetermined overhead rate per MHarrow_forward
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