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Tresset [83]
3 years ago
14

Donald Transport assembles prestige manufactured homes. Its job-costing system has two direct-cost categories (direct materials

and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $31 per machine-hour
Materials Control, beginning balance, January 1, 2014 $18
Work-in-Process Control, beginning balance, January 1, 2014 $9
Finished Goods Control, beginning balance, January 1, 2014 $10
Materials and supplies purchased on credit $154
Direct materials used $152
Indirect materials (supplies) issued to various production departments $19
Direct manufacturing labor $96
Indirect manufacturing labor incurred by various production departments $34
Depreciation on plant and manufacturing equipment $28
Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as repairs, utilities, etc., with a corresponding credit to various liability accounts) $13
Manufacturing overhead allocated, 3,000,000 actual machine-hours ?
Cost of goods manufactured $298
Revenues $410
Cost of goods sold $294
Prepare journal entries. Number your entries. Explanations for each entry may be omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control?
Show the journal entry for disposing of under- or overallocated manufacturing overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts.
How did Donald Transport perform in 2014?
Business
1 answer:
34kurt3 years ago
5 0

Answer:

1.Work in process (end) = $52.

2.Journal entry to record disposing of overhead:

     Dr Cost of goods sold  1000000

                Cr Factory overhead      1000000

Explanation:

Predetermined rate = $31 per machine hour.

Actual machine hours = 3000000 hours.

Applied factory overhead = actual machine hours * predetermined rate

                                        = 3000000 * 31 = $ 93000000.

Material used = material (open) + purchased - material (end)

                  152     = 18+154 - material( end)

       Material (end) = 20.

Manufacturing cost = material used + direct labor + factory overhead

                            = 152+96+(19+34+28+13) = 341

Journal entry

1. Dr Material 154

                Cr Accounts payable  154

(Material and supplies purchased on account)

2. Dr work in process 152

                        Cr Material  152

(Direct material used)

3.Dr Factory overhead 19

                        Cr material   19

( Indirect material issued)

4. Dr Work in process  96

                 Cr Payroll           96

(Direct labor used)

5. Dr Factory overhead 34

                            Cr payroll  34

( Indirect labor used)

6. Dr Factory overhead  28

                        Cr Accumulated depreciation 28

( Depreciation on plant)

7. Dr Factory overhead  13

                   Cr Accounts payable 13

( Various overhead incurred)

T-account

Work in process                                                           Material

Dr___________Cr__                                         __ DR ___________CR

(open) 9  --                                                                 18  ----

152                                                                             154   ---    152

 96                                                                                         ---    19

Accounts payable                                                   Factory overhead

Dr____________Cr___                                ___ DR ___________Cr

                ---  154                                                    19    ---

               ---   13                                                     34   ---

                                                                               28  --

                                                                               13   --

Payroll                                                             Accumulated deprec

Dr ____________Cr__                                    __ Dr _____________Cr

             --- 96                                                                     ---    28

             ---  34

Accounts payable Prepaid insurance

Dr_____________Cr___ Dr ___________Cr_

Cost of goods manufactured:

Cost of goods manufactured = manufacturing cost+ work in process (open)-work in process (end)

 298 = 341 + 9 - work in process (end)

work in process (end) = 350 - 298 = $52.

Cost of goods sold:

Cost of goods sold = Finished goods (open) + cost of goods manufactured - finished goods (end)

  294 = 10 +298 - finished goods (end)

     Finished goods (end) = 308-294 = $14.

Over/under applied overhead:

Actual overhead = (19+34+28+13) = 94

Suppose overhead is in million so $ 94000000.

Applied overhead =<u>$ 93000000</u>

Under applied overhead = $1000000.

Adjusted cost of goods sold:

cost of goods sold = 294000

Add: under applied overhead = <u>1000000</u>

Adjusted cost of goods sold = 1294000

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Answer:

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Current assets/Total assets

Explanation:

Current assets represent a portion of the total assets that can be converted into cash or marketable securities quickly. A higher Current assets to total assets helps one to know the amount of the total assets that can be liquidated fairly quickly. The current assets should be able to be converted into cash or cash equivalents within a year to be deemed as a current asset. Examples of current assets are; cash, cash equivalents, stock inventories, market securities, accounts receivable, inventories and other liquid assets.

Current assets are the exact opposite of long-term assets, since the latter represents the portion of total assets that can not be easily converted in cash and cash equivalents within a year. They usually take a much longer time to convert into cash. They are; equipment, land and buildings.

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5 0
3 years ago
Glavine Company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of it
almond37 [142]

Answer:

                                                                                        $

Market value of common stocks   (6,000 x $25)  = 150,000

Market value of preferred stocks (9,000 x   $20) = 180,000

Market value of the company                                    330,000

Proceeds allocated to common stocks

= $150,000/$330,000 x $312,000

= $141,818

The correct answer is B

Explanation:

The market value of the company is the aggregate of market value of common stocks and market value of preferred stocks.The market value of each stock is equal to number of each stock outstanding multiplied by market price per share. Thus, the proceeds allocated to common stock equals the market value of equity divided by market value of the company multiplied by the lump sum.

4 0
3 years ago
If Highway 55 Studios can reduce fixed expenses by ​, by how much can variable expenses per unit increase and still allow the co
solniwko [45]

Answer:

$2.25

Explanation:

Please check the attached image for the full question used in answering this question

Breakeven sales is the quantity sold at which net income is equal to zero.

Breakeven sales = fixed cost / (price per unit - variable cost per unit )

$1,215,000 / ($80 - $35) = 27,000

If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =

27,000 = ($1,215,000 - $60,750) / ($80 - V)

27,000 = 1,154,250 / ($80 - V)

V = $37.25

Variable cost would increase by  : $37.25 - $35 = 2.25

8 0
3 years ago
Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.Estimated MOH $238,000A
Ulleksa [173]

Answer:

B.) $11.90

Explanation:

Predetermined manufacturing overhead rate are based on the estimates made by the company.

So the calculation should be:

Estimated MOH of $238,000<em> divided by</em> Estimated Machine Hours of 20,000.

Giving us the result of $11.90

(238,000 / 20,000 = 11.90)

7 0
3 years ago
Sweetpea Corporation sold a tiller that it used in its landscaping business. The tiller cost $5,000 and Sweetpea had taken $2,00
astraxan [27]

Answer:

Sweetpea have a gain of $1,000

Explanation:

When the depreciable property is sold, then the gain or loss will be computed to the extent on the difference among the selling price and the adjusted basis.

So, the adjusted basis will be

= Cost of the basis - Depreciation

= $5,000 - $2,000

= $3.000

Therefore,

Gain or Loss = Selling Price - Adjusted basis

                     = $4,000 - $3,000

                     = $1,000

Hence, it is a gain of $1,000.

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