Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter 3, Problem 7Q
At Ely Company,
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Managerial Accounting: Tools for Business Decision Making
Ch. 3 - Identify which costing systemjob order or process...Ch. 3 - Contrast the primary focus of job order cost...Ch. 3 - What are the similarities between a job order and...Ch. 3 - Your roommate is confused about the features of...Ch. 3 - Sam Bowyer believes there are no significant...Ch. 3 - (a) What source documents are used in assigning...Ch. 3 - At Ely Company, overhead is assigned to production...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Coats Company had zero units of beginning work in...Ch. 3 - Sanchez Co. has zero units of beginning work in...Ch. 3 - Hindi Co. started 3,000 units during the period....Ch. 3 - Clauss Company transfers out 14,000 units and has...Ch. 3 - Prob. 16QCh. 3 - What purposes are served by a production cost...Ch. 3 - As Trent Company, there are 500 units of ending...Ch. 3 - What is the difference between operations costing...Ch. 3 - How does a company decide whether to use a job...Ch. 3 - Soria Co. started and completed 2,000 units for...Ch. 3 - Reyes Company transfers out 12,000 units and has...Ch. 3 - Journalize entries for accumulating costs. (LO 2)....Ch. 3 - Data for Warner Company are given in BE3-1....Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute equivalent units of production. (LO 3), AP...Ch. 3 - Compute unit costs of production.. (LO 4), AP In...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 4), AP Production costs...Ch. 3 - Prepare cost reconciliation schedule. (LO 4), AP...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Assign costs to units transferred out and in...Ch. 3 - Compute unit costs. (LO 5), AP Production costs...Ch. 3 - Indicate whether each of the following statements...Ch. 3 - Kopa Company manufactures CH-21 through two...Ch. 3 - The Assembly Department for Right pens has the...Ch. 3 - In March, Kelly Company had the following unit...Ch. 3 - Robert Wilkins has prepared the following list of...Ch. 3 - Journalize transactions. (LO 2), AP Harrelson...Ch. 3 - The ledger of American Company has the following...Ch. 3 - Journalize transaction for two processes. (LO 2),...Ch. 3 - In Shady Company, materials are entered at the...Ch. 3 - The Cutting Department of Cassel Company has the...Ch. 3 - The Sanding Department of Quik Furniture Company...Ch. 3 - The Blending Department of Luongo Company has the...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - The Polishing Department of Major Company has the...Ch. 3 - Prob. 3.12ECh. 3 - The Welding Department of Healthy Company has the...Ch. 3 - Remington Inc. is contemplating the use of process...Ch. 3 - Santana Mortgage Company uses a process cost...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Determine equivalent units, unit costs, and...Ch. 3 - Compute equivalent units, unit costs, and costs...Ch. 3 - Answer questions on costs and production. (LO 5),...Ch. 3 - The Welding Department of Majestic Company has the...Ch. 3 - Fire Out Company manufactures its product,...Ch. 3 - Complete four steps necessary to prepare a...Ch. 3 - Thakin Industries Inc. manufactures dorm furniture...Ch. 3 - Rivera Company has several processing departments....Ch. 3 - Polk Company manufactures basketballs. Materials...Ch. 3 - Hamilton Processing Company uses a weighted...Ch. 3 - Determine equivalent units and unit costs and...Ch. 3 - CURRENT DESIGNS CDJ Building a kayak using the...Ch. 3 - Decision-Making Across the Organization Florida...Ch. 3 - Harris Furniture Company manufactures living room...Ch. 3 - CRITICAL THINKING Communication Activity Diane...Ch. 3 - Ethics Case R. B. Dillman Company manufactures a...Ch. 3 - In a recent year, an oil refinery Texas City,...
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- Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?arrow_forwardThe cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?arrow_forwardRockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)arrow_forward
- Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?arrow_forwardBaxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.arrow_forwardOverhead is assigned to the manufacturing department at the rate of $5 per machine hour. There were 3,000 machine hours used in the molding department. Prepare the journal entry to apply overhead to the manufacturing department.arrow_forward
- Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?arrow_forwardChannel Products Inc. uses the job order cost system of accounting. The following is a list of the jobs completed during March, showing the charges for materials issued to production and for direct labor. Assume that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 200%. Required: Compute the amount of overhead to be added to the cost of each job completed during the month. Compute the total cost of each job completed during the month. Compute the total cost of producing all the jobs finished during the month.arrow_forwardChester Company provided information on overhead for its three producing departments as follows: Overhead is applied on the basis of machine hours in Fabricating and direct labor hours in Assembly and in Finishing. Job #13-198 had total prime cost of 6,700. The job took 40 machine hours in Fabricating, 100 direct labor hours in Assembly, and 20 direct labor hours in Finishing. What is the total cost of Job# 13-198? a. 6,700.00 b. 1,523.20 c. 8,223.20 d. 7,383.20arrow_forward
- Spokane Production Co. obtained the following information from its records for July: Required: 1. Prepare, in summary form, the journal entries that would have been made during the month to record issuing materials to production, the distribution of labor, and overhead costs; the completion of the jobs; and the sale of the jobs. 2. Prepare schedules computing the following for July: a. The gross profit or loss for each job completed and sold, and for the business as a whole. b. For each job, the gross profit or loss per unit. (Round to the nearest cent.)arrow_forwardLuna Manufacturing Inc. completed Job 2525 on May 31, and there were no jobs in process in the plant. Prior to June 1, the predetermined overhead application rate for June was computed from the following data, based on an estimate of 5,000 direct labor hours: The factory has one production department and uses the direct labor hour method to apply factory overhead. Three jobs are started during the month, and postings are made daily to the job cost sheets from the materials requisitions and labor-time records. The following schedule shows the jobs and amounts posted to the job cost sheets: The factory overhead control account was debited during the month for actual factory overhead expenses of 27,000. On June 11, Job 2526 was completed and delivered to the customer using a mark-on percentage of 50% on manufacturing cost. On June 24, Job 2527 was completed and transferred to Finished Goods. On June 30, Job 2528 was still in process. Required: 1. Prepare job cost sheets for Jobs 2526, 2527, and 2528, including factory overhead applied when the job was completed or at the end of the month for partially completed jobs. 2. Prepare journal entries as of June 30 for the following: a. Applying factory overhead to production. b. Closing the applied factory overhead account. c. Closing the factory overhead account. d. Transferring the cost of the completed jobs to finished goods. e. Recording the cost of the sale and the sale of Job 2526.arrow_forwardCollegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, 4,500 of indirect materials and 8,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Journalize the summary entry to record each of the following operations for March (one entry for each operation): a. Direct and indirect materials used. b. Direct and indirect labor used. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302.arrow_forward
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