Question

In: Accounting

Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the...

Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the basis of machine hours. On January 1 of the current year, there were no balances in work-in-process or finished-goods inventories. The following estimates were included in the current year’s budget.

    
Total budgeted manufacturing overhead $ 282,000
Total budgeted machine hours 47,000


During January, the firm began the following production jobs:

A79: 1,000 machine hours

N08: 2,500 machine hours

P82: 500 machine hours

Prepare a journal entry to prorate the balance calculated in requirement 3 (Underapplied overhead = $2000) among the Work-in-Process Inventory, Finished-Goods Inventory, and Cost of Goods Sold accounts. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Solutions

Expert Solution


Related Solutions

Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted...
Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted rate based on direct labor cost. At the end of the period, there are two unfinished jobs. Additional information is available as follows:                   Direct materials used                             $ 50,000                   Direct labor costs                                   $100,000                   Beginning Work-in-process inventory $100,000                   Cost of goods manufactured                  $150,000                   Beginning Finished goods inventory     $140,000                     Ending Finished goods inventory          $110,000                   Actual factory overhead incurred...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $142,560 for the year; direct labor was estimated to total $162,000. (1/1) (12/31) Raw Materials Inventory $ 13,800 $ 10,800 Work in Process Inventory $ 29,800 $ 22,800 Finished Goods Inventory $ 41,800 $ 32,800 The following transactions have occurred during the year. Raw materials purchases $ 138,000 Direct materials used $ 75,600 Direct...
X Corporation, which uses a normal job costing system and dispose the over/under applied manufacturing overhead...
X Corporation, which uses a normal job costing system and dispose the over/under applied manufacturing overhead using write-off method, had two jobs in process at the start of 20x2: Job No. 59, WIP Balance$66,500Job No. 60, WIP Balance$139,500X applies manufacturing overhead on the basis of machine hours.At the beginning of the 20x2, X corporation estimated its manufacturing overhead during the first quarter would total $231,250and its budgeted machine hours would total 6250Manufacturing overhead incurred during the first quarter of 20x2...
Lin Corporation uses a job order costing system and normal costing, with overhead being applied on...
Lin Corporation uses a job order costing system and normal costing, with overhead being applied on the basis of direct labor cost. There were no jobs in process at the start of the period. During the month, the company worked on 3 jobs, with the following information: Alpha Beta Gamma Direct Labor ($8/hour) $24,000 $8,800 Direct Materials $42,000 $61,000 Overhead Applied $23,940 $6,160 During the month, only job Alpha was completed and transferred to finished goods inventroy. The ending balance...
Gene Simmons Company uses normal costing in each of its three manufacturing departments. Manufacturing overhead is...
Gene Simmons Company uses normal costing in each of its three manufacturing departments. Manufacturing overhead is applied to production on the basis of direct labor cost in Department A, machine hours in Department B, and direct labor hours in Department C. In establishing the predetermined overhead rates for the current year, the following budgeted data was available: A B C Manufacturing Overhead $900,000 $840,000 $760,000 Direct Labor Cost $600,000 $100,000 $600,000 Direct Labor Hours 50,000 40,000 40,000 Machine Hours 100,000...
6/ The Work in Process Inventory account of a manufacturing company that uses an overhead rate...
6/ The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,050 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,910 and direct labor cost of $730. Therefore, the amount of the applied overhead is: Multiple Choice $2,140. $2,640. $1,410. $730. $3,320. 7/ Adams Manufacturing allocates overhead to production on the basis of direct...
The work in process inventory account of a manufacturing company that uses and overhead rate based...
The work in process inventory account of a manufacturing company that uses and overhead rate based on direct labor cost has a $9,873 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $3,300 and direct labor cost of $2,100. Therefore, the company's overhead application rate is: A. 64% of direct labor cost B. 136% of direct labor cost c. 157% of direct labor cost D. 213% of...
The Wamth Radiator Company uses a​ normal-costing system with a single manufacturing overhead cost pool and​...
The Wamth Radiator Company uses a​ normal-costing system with a single manufacturing overhead cost pool and​ machine-hours as the​ cost-allocation base. The following data are for 2017​: Budgeted Manufacturing Overhead Costs $ 5,225,000 Overhead Allocation Base machine-hours Budgeted machine-hours 95,000 Manufacturing Overhead Costs Incurred $ 5,425,000 Actual machine-hours 100,000 Machine-hours data and the ending balances​ (before proration of​ under- or overallocated​ overhead) are as​ follows: Actual Machine-Hours 2017 End-of-Year Balance Cost of Goods Sold 75,000 $ 9,750,000 Finished Goods Control...
The Zef Radiator Company uses a​ normal-costing system with a single manufacturing overhead cost pool and​...
The Zef Radiator Company uses a​ normal-costing system with a single manufacturing overhead cost pool and​ machine-hours as the​ cost-allocation base. The following data are for 2017​: Budgeted Manufacturing Overhead Costs $ 4,875,000 Overhead Allocation Base machine-hours Budgeted machine-hours 75,000 Manufacturing Overhead Costs Incurred $ 5,125,000 Actual machine-hours 80,000 Machine-hours data and the ending balances​ (before proration of​ under- or overallocated​ overhead) are as​ follows: Actual Machine-Hours 2017 End-of-Year Balance Cost of Goods Sold 60,000 $ 8,500,000 Finished Goods Control...
Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of...
Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $60,680 for the year; direct labor was estimated to total $151,700. Raw Materials Inventory (1/1) $ 10,700 (12/31) $ 13,700 Work in Process Inventory (1/1) $ 23,900 (12/31) $ 18,500 Finished Goods Inventory (1/1) $ 34,100 (12/31) $ 40,000 The following transactions have occurred during the year. Raw materials purchases $ 107,000 Direct materials...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT