1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
8_murik_8 [283]
3 years ago
12

Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upco

ming year, the company estimated its total manufacturing overhead cost at $420,000 and total machine hours at 60,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 19,200 $ 14,400 $ 9,600 $ 43,200 Direct labor $ 28,800 $ 11,200 $ 9,600 $ 49,600 Machine hours 1,000 hours 4,000 hours 2,000 hours 7,000 hours Job 101 was completed and sold for $60,000. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $45,000.
Required:
1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.
2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101.
3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.
Business
1 answer:
inessss [21]3 years ago
6 0

Answer:

<u>Over Applied Overhead      = $ 4000</u>

Actual Manufacturing Overhead = $45,000

Manufacturing Overhead Applied = $ 49,000

Explanation:

                                          Job 101        Job 102        Job 103

Total Direct materials      $ 19,200     $ 14,400       $ 9,600       $ 43,200

Direct labor                    $ 28,800       $ 11,200        $ 9,600      $ 49,600

Machine hours              1,000 hrs        4,000 hrs      2,000 hrs   7,000 hours

<u>Manufacturing overhead   $ 7000       $ 28,000      14,000 </u>

<u>Total                                $ 55,000         53,600        33,200</u>

Actual overhead costs recorded during the first month of operations totaled $45,000.

<u>Journal Entries </u>

<u>Sr. No                    Particulars                 Debit                   Credit</u>

Job 102              Finished Goods           53,600

                           Work In Process                                     53,600

A journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.

Job 101                Sales                         60,000

                        Cost Of Goods Sold                              60,000

Journal entries to recognize the sales revenue and cost of goods sold for Job 101.

Job 101              Cost of Goods Sold        55,000

                          Finished Goods Inventory                  55,000

Manufacturing Overhead Applied =   $ 7000 + $ 28,000+14,000 = $ 49,000

Job 101 = 1000/60,000 * $ 420,000= $ 7000

Job 102 = 4000/60,000 * $ 420,000= $ 28000

Job 103 = 2000/60,000 * $ 420,000= $ 14000

Actual Manufacturing Overhead = $45,000

<u>Over Applied Overhead      = $ 4000</u>

                                   

      Manufacturing Overhead  Accounts $ 4000  debit                  

              Cost of Goods Sold          $ 4000 Credit

Entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.

(Entry to reduce the amount of Over applied Overhead)                                

                         

You might be interested in
A predetermined manufacturing overhead rate is calculated in the same manner as an actual manufacturing overhead rate except tha
xxMikexx [17]

Answer:

a) true

Explanation:

The Formulae to compute the rates are :

Predetermined manufacturing overhead rate = Estimated Fixed Cost ÷ Estimated Activity

While,

Actual manufacturing overhead rate = Actual Fixed Cost ÷ Actual Activity

4 0
3 years ago
One of the goals of Reaganomics was to encourage private investment through tax cuts for businesses and the wealthy encourage pr
Brut [27]

Answer:

A redistribute income to the bottom fifth of wage earners redistribute income to the bottom fifth of wage earners

Explanation:

Reaganomics is a policy ascribed to President Ronald Reagan who took up the presidency when the economy of United States was very bad and low. He initiated series of policies with the aim of stimulating the economy and creating more jobs.

<em>One of the important policy was on the issue of tax cuts for businesses and wealthy individuals with the aim of encouraging them to invest in United States. He knows that, with the creation of more businesses by wealthy individuals, the income would be redistributed to the wage earners especially those at the bottom earners.</em>

7 0
2 years ago
Read 2 more answers
The Accumulated Depreciation account is shown on the balance sheet as a liability. 1. is a contra asset account with a credit ba
inessss [21]

Answer:

Option 1 is correct because accumulated depreciation account is contra asset account and has a credit balance that is adjusted in the balance sheet. This accumlated depreciation is adjusted against the value of the asset when the asset is sold or disposed off.

Explanation:

Other options are incorrect because Accumulated depreciation is contra asset account and is credit in nature, not debit in nature. Furthermore, saying that accumulated depreciation account is contra revenue account which is also incorrect.

4 0
3 years ago
Read 2 more answers
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation
djyliett [7]

Answer:

The depreciation schedule for six years is attached below.

Explanation:

8 0
2 years ago
Accounting for lean operations requires fewer transactions because
Shtirlitz [24]
Lean operations including manufacturing and production are a system to minimize waste. This system works proactively and tries to limit the amount of productivity being wasted to manufacture items. Less transactions are needed in this system being they are efficient throughout the organization. 
7 0
3 years ago
Other questions:
  • Dragonfly, publisher of children's books, has purchased White Rabbit, another publisher of children's books. Both companies' boo
    9·1 answer
  • Nike targets professionals and consumers with innovative shoes and apparel for running, basketball, soccer, tennis, skateboardin
    9·1 answer
  • When a grocery store chain adopts a new practice of its competitors by staying open 24 hours a day, requiring employees to work
    14·1 answer
  • Suppose the president is attempting to decide whether the federal government should spend more on research to find a cure for he
    5·1 answer
  • Tell Me Why Co. is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the company has a div
    15·1 answer
  • Atlas Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,000 were put in
    9·1 answer
  • Sometimes development aid goes toward disaster relief. For​ example, after the Indian Ocean tsunami of​ 2004, non-governmental o
    6·1 answer
  • An economy is operating with output $200 billion above its natural level, and fiscal policymakers want to close this expansionar
    5·1 answer
  • The large percentage of population involved in agriculture in China indicates that most people consume an inadequate number of c
    5·1 answer
  • Compared to the other classifications of consumer products, shopping products are:_________
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!