ACTG 1P12 Lecture Notes - Lecture 7: Pro Rata, Net Income, Finished Good

30 views3 pages

redmosquito980

16 Apr 2018

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Accumulate the manufacturing costs incurred: direct materials and direct labor, manufacturing overhead, por = (cid:3046)(cid:3047)(cid:3040)(cid:3047)(cid:3032)(cid:3031) (cid:3047)(cid:3039) (cid:3032)(cid:3045) (cid:3032)(cid:3031) (cid:3046)(cid:3047)(cid:3046) (cid:3046)(cid:3047)(cid:3040)(cid:3047)(cid:3032)(cid:3031) (cid:3047)(cid:3039) (cid:3030)(cid:3047)(cid:3047) Assign the accumulated costs to the work done: move to wip, move to fgi, move to cogs. Use actual costs when moving from one to the other. At the end of the period, there is usually a difference between indirect costs incurred and indirect costs allocated to work-in-process during the year. = (indirect costs allocation rate [por]) x (actual volume of work) Indirect costs incurred > indirect costs allocated = under allocated indirect costs. Indirect costs incurred < indirect costs allocated = over allocated indirect costs. Proration method: the under-applied or over-applied overhead is pro-rated among, wip inventory, fgi, cogs, the total of these account balances equals the actual costs incurred. Tiger, inc. had actual manufacturing overhead costs of ,210,000 and a predetermined overhead rate of . 00 per machine hour.

Related Questions

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchâJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):


Estimated total fixed manufacturing overhead	$	13,200
Estimated variable manufacturing overhead per direct labor-hour	$	1.20
Estimated total direct labor-hours to be worked		3,300
Total actual manufacturing overhead costs incurred	$	17,000
Direct Materials Job P: $17,500 Job Q: $9,300 Direct Labor Cost Job P: $43,200 Job Q: $11,700 Actual direct labor hours worked Job P: 2,400 Job Q: 650 -Prepare the journal entry to apply manufacturing overhead costs to production -Assume the ending raw materials inventory is $2,300 and the company does not use any indirect materials. Prepare a schedule of cost of goods manufactured. -Prepare the journal entry to transfer costs from Work in Process to Finished Goods. -

Prepare a completed Work in Process T-account including the beginning and ending balances and all debits and credits posted to the account.

-Prepare a schedule of cost of goods sold.

-Prepare the journal entry to transfer costs from Finished Goods to Cost of Goods Sold

-What is the amount of underapplied or overapplied overhead?

Prepare the journal entry to close the amount of underapplied or overapplied overhead to Cost of Goods Sold.

-Assume that Job P includes 20 units that each sell for $4,500 and that the companyâs selling and administrative expenses in March were $10,000. Prepare an absorption costing income statement for March.

pinkmallard135

Direct materials are added at the start of the process.Conversion costs are added evenly during the process. We use theweighted average-method of process costing. The followinginformation for March 2013 is available.

Work in process, Mar. 1: 10,000units (70% converted)

Started during March: 40,000 units

Completed and transferred during March: 34,000 units

**Ending working in process is 50% converted as direct labor andoverhead**

Total costs for March:

Working in process beginning:

Direct Materials $60,000

Direct Labor: $50,000

Overhead Applied: $20,000

direct materials added during March: $280,000

Direct labor added duringMarch: $265,000

Overhead applied duringMarch: $106,000

***Questions***

1. Calculate cost per unit for materials, labor andoverhead.

2. Prepare the journal entries for the costs used in work inprocess plus the cost transferred from work-in-process to finishedgoods.

3. If the actual manufacturing overhead was $100,000 duringMarch what is the balance in manufacturing overhead at March 31,2013.

4. What is the journal entry to account for the over orunder-applied overhead?

5. What is the March 31, 2013 balance in work in process?

teallizard787

Basic Job Costing Project

Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.

At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.

The following information pertains to December of the current year:

	Job 10	Job 11	Job 12	Total
Work-in-process, Dec. 1	$16,000	$26,000	$38,000	$80,000

The following transactions took place during the month of December:

1. Purchased raw materials for $25,000 on credit;

2. Requisitioned and used direct materials for the three jobs:

a. $4,000 for Job 10

b. $4,800 for Job 11

c. $7,200 for Job 12

3. Used indirect materials worth $20,000

4. . Incurred direct labor costs as follows:

a. $ 2,400 for Job 10

b. $3,600 for Job 11

c. $4,000 for Job 12

5. Incurred $30,000 worth of indirect manufacturing labor costs.

6. Depreciation on manufacturing plant and equipment $21,000.

7. During the month of December, the company used the following direct labor hours and machine hours for the three jobs:

	Job 10	Job 11	Job 12	Total
Machine hours	400	700	900	2,000
Labor hours	120	180	200	500

Required:

1. Compute the predetermined overhead application rate.

2. Prepare the journal entries for the transactions that took place in December and apply manufacturing overhead to the jobs using the actual machine hours.

3. Determine the total cost associated with each job.

4. If jobs 10 and 12 were completed, prepared the journal entry to move jobs 10 and 12 to finished goods.

5. Delivered job 10 to customers that paid $40,000 cash; prepare the journal entries to sell job 10 and to recognize the associated cost of goods sold.

6. What is the cost assigned to ending work in process (control account)?

7. What is the cost assigned to ending finished goods (control account)?

8. How much was manufacturing overhead over/underapplied?

indigolion723

ACTG 1P12 Lecture Notes - Lecture 7: Pro Rata, Net Income, Finished Good

Document Summary

Get access

Related Documents

ACTG 1P12 Lecture Notes - Lecture 21: Negative Number, Cost Accounting, Quality Control

Related Questions