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eduard
2 years ago
15

Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LO3-4] The fol

lowing information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 499,968 (b) 416,640 Bal. 83,328 Work in Process Bal. 5,360 (c) 778,000 319,500 93,500 (b) 416,640 Bal. 57,000 Finished Goods Bal. 33,000 (d) 674,000 (c) 778,000 Bal. 137,000 Cost of Goods Sold (d) 674,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
Work in Process, ending $ 27,360
Finished Goods, ending 65,760
Cost of Goods Sold 323,520
Overhead applied $ 416,640
For example, of the $57,000 ending balance in work in process, $27,360 was overhead that had been applied during the year. Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Business
1 answer:
Yanka [14]2 years ago
8 0

Answer:

1. a would be the Actual Manufacturing cost for the year

b would be the Manufacturing Overhead applied to the Work in Process

c is the Cost of Goods Manufactured in the year

d is the Cost of Goods Sold as shown in the same named account.

2.

DR Cost of Goods Sold                                             $83,328

CR Manufacturing Overhead                                                   $83,328

3.

DR Work in Process                                                   $‭5,472‬

      Finished Goods                                                   $‭13,152‬

      Cost of Goods sold                                             $‭64,704‬

CR Manufacturing Overhead                                                     $83,328

Working

Overhead is distributed as follows;

Work in process = 27,360/ 416,640 * 83,328 = $‭5,472‬

Finished Goods = 65,760/ 416,640 * 83,328 = $‭13,152‬

Cost of Goods sold = 323,520/416,640 * 83,328 = $‭64,704‬

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Which conclusion is accurately reflected in the data table? (5 points)
Anna11 [10]

Answer:

As your level of education increases, your income potential also increases.

Explanation:

As per the graph, the highest earners are holders of a doctoral degree, professional degrees, and master degrees. These are highly educated individuals.

At the bottom end, the lowest earners are those with high school diplomas and below.

The graphs clearly illustrate that acquiring a high level of education increases the probability of increased earning.

6 0
2 years ago
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. Fo
soldi70 [24.7K]

Answer:

product line

Explanation:

A product line is a group of related products sold by a business under the same commercial brand.

For example, the company might produce a love Teddy for Valentine's Day, GI Teddy for Veteran's Day, Pilgrim Teddy for Thanksgiving, and Santa Teddy for Christmas.

4 0
3 years ago
These items are taken from the financial statements of Windsor, Inc. at December 31, 2017.
nordsb [41]

Answer:

To make balance sheet we first have to calculate net income/net profit for the year.

<em><u>Net profit Calculation</u></em>

Service revenue            $ 13,524

Insurance expense        ($     718 )

Depreciation expense   ($ 4,876)

Interest expense           ($ 2,392)

Profit                              $ 5,538

<em><u></u></em>

Balance Sheet

Asset

Non-Current Asset

Land                                                            $56,304                                                            

Buildings                                                     $97,336

Accumulated depreciation—buildings      ($41,952)

Equipment                                                   $75,808

Accumulated depreciation—equipment   ($17,222)

Total non Current Asset                            $170,274

Current Asset

Cash                                                              $10,893

Accounts receivable                                    $11,592

Prepaid insurance                                         $2,944

Current Asset                                               $25,429

Total Asset                                                   $195,703

Equity

Common stock                                              $55,200

Retain Earning (36,801+5,538)                     $42,339

Total Equity                                                   $97,539

Liability

Non-Current Liability

Current Liability

Accounts payable                                           $8,740

Notes payable                                                $86,112

Interest payable                                               $3,312

Total Current Liability                                  $98,164

Total Liability + Equity                                $195,703

5 0
3 years ago
Home produces two goods: computers and wheat. Capital is specific to computers, land is specific to wheat, and labor is mobile b
kaheart [24]

Answer:

The appropriate answer is "capital intensive, land intensive".

Explanation:

  • Throughout Home than anything in Abroad, the whole no-trade income of farmers would be significantly greater, even though Home has fewer land assets than International. Throughout Home, then it does in International, the whole no-trade rate of electronics would be smaller, as Home does have more capital resources than International.
  • If the market is established, the comparative commodity price throughout the home will be decreased through trade as well as rise throughout foreign trade. If an exchange is expanded, the capital demand would rise at home as well as the rent overland throughout foreign countries will rise.

This will take effect even though the international availability of land will increase but instead international demand for resources will keep increasing.

7 0
3 years ago
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. products. D. s
slava [35]

Answer:

D. services.

Explanation:

Examples of services are financial service, delivery services.

The economic activities that typically produce an tangible product are referred to as goods.

I hope my answer helps you

3 0
3 years ago
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